Spain to cut photovoltaic solar-energy subsidies

www.nasdaq.com
Jun 17, 2010

The Spanish government has decided to lower subsidies on existing photovoltaic solar-energy plants by 30%, two people close to the situation said Wednesday. The Industry Ministry plans to limit the production hours it subsidises, so that when plants surpass this limit they will be remunerated at market rates, these people said. The government estimates the cut will save it EUR840 million. For new photovoltaic solar plants, the government will cut subsidies by 45% for open-field units and by 25% for rooftop units, they said. Ministry spokespeople weren't immediately available to comment. The ministry will make public the new tariffs by July 1. Spanish subsidies for photovoltaic solar energy totalled EUR2.8 billion in 2009, driving up the cost of the electricity for consumers.