BSW Solar: Abolish 52 GW Subsidy Cap For PV

• Germany's BSW Solar has called out to the government to do away with cap on subsidies provided to solar power plants once 52 GW capacity threshold is reached
• It expects the number to be achieved by 2020 but feels the industry still needs to be encouraged through subsidies
• It demands policy makers to take immediate action for climate protection before parliamentary summer break starts

The German Solar Trade Association BSW Solar is demanding the government do away with the subsidy cap it plans to put on solar power project once 52 GW capacity has been installed in the country. It has called out to the policy makers to take immediate action for climate protection before parliamentary summer break commences.

According to BSW Solar's estimates, the 52 GW mark could be expected to be achieved as early as 2020. Currently, the installed capacity of the country is around 47 GW (see Germany Installed 349 MW Solar In March 2019).

Several 100,000 companies comprising small and medium sized businesses, trade, energy and real estate along with tenants, consumers and environmental protection, all representing over 10 million citizens back the demand for removing the subsidy cap, according to the association. It also refers to a survey result conducted by research institute YouGov which showed Germans are not very happy with the way government has been steering the growth of solar here.

While it agrees that falling prices will encourage the adoption of solar and it would make subsidy regime redundant going forward, the association says any 'abrupt and too early end' the expansion of PV rooftop systems would break down, according to government advisors who wrote Renewable Energy Report.

It advocates letting the subsidy for solar power automatically expiring on its own, instead of cutting it or putting a cap over it. This would 'bypass the market reality' and is 'toxic for climate protection'.

"We are confident that citizens' will and climate protection are now taken seriously and that the right course is set," said Managing Director of BSW Solar Carsten Körnig. Stressing on the need to expand solar energy into the mainstream future energy supply in electricity, heating and transport sectors, BSW Solar believes it is 'indispensable to eliminate investment barriers such as the solar cover and the sun tax on solar tenant electricity'.

It also wants the government to increase solar energy target of the country.

Germany is slowly working on subsidy-free projects, for instance, BayWa is developing 8.8 MW Barth V Solar Project as country's first 'subsidy-free solar park' with long-term non-recourse financing from an experienced German bank. Power generated will be sold to an industrial partner and other entities (see BayWa Building Germany's 1^st Subsidy-Free PV Project). Even German electric utility EnBW has also announced plans to construct 175 MW solar project as country's largest solar power plant without state subsidies (see 175 MW Subsidy-Free PV Park For Germany).