Germany drops plans for domestic solar industry subsidies

Germany has shelved plans to subsidise its domestic solar manufacturing industry by rewarding consumers for buying European-made panels, after its ruling coalition parties failed to agree the policy, the economy ministry said on Wednesday.
Photovoltaic panels made in Europe make up only a small fraction of Germany’s market, and German manufacturers have been complaining about an influx of cheap Chinese panels, pushing companies to scale down production or shut it down completely.
Last summer, the economy ministry suggested introducing a “resilience bonus” – a feed-in remuneration for consumers using domestically made solar panels on their roofs, to boost demand for European solar components.
But the subsidy plan was challenged by the pro-business FDP coalition party as an expensive market intervention. Downstream solar developers, heavily dependent on Chinese modules, also rejected the bonus, saying it would create chaos in the market.