THAT GERMANY, not one of Europe's sunniest states, remains the continent's leader in solar energy usage and manufacturing is a tribute to the catalytic effect of the country's subsidised feed-in tariff regime. But with those subsidies being reduced annually and strong competition coming from Asian manufacturers, doubts are growing over the viability of an industry that is better suited to warmer climes and lower-cost labour markets. Germany's solar-energy producers have relied on feed-in tariffs well above those paid to fossil-fuel energy producers - and those for many other renewable energies - which have been effectively subsidised through higher electricity prices. Those tariffs have been steadily cut since their inception, but, crucially, power providers have been guaranteed their starting tariffs on any given contract for 20 years, a measure that has provided a big incentive for early market entry.
展开▼
