Proposed changes to the feed-in tariff in Germany for solar power have caused so much alarm in the PV industry there that the head of the country’s solar industry association has issued a strong warning about its possible effects. Günther Cramer, president of the Bundesverband Solarwirtschaft (BSW), went so far as to say that the proposed cuts threaten jobs. “Dozens of German solar companies would face insolvency or be forced to relocate their production outside of Germany,” said Cramer.

“The excessive feed-in tariff cut endangers one of the most important driving forces of jobs and the economy in our country. The creation of value added in the production of PV modules must be allowed to continue in Germany.” Cramer added the cuts even threaten to make the German chancellor’s policy on climate change obsolete. The BSW strongly advises a cautionary approach to reducing the feed-in tariff.

It says large sections of the German solar industry would not survive an additional reduction of the tariff for photovoltaic systems this year in the double-digit percentage range. “If this were implemented, around 50 000 jobs in Germany would hang in the balance,” a statement by the organisation reads.

BSW managing director Carsten Körnig reflected the industry’s consternation over these proposals by saying: “Depending on growth and market segment, this brings the total reduction in funding for solar energy from 31 December 2009 to 1 January 2011 from 25.5 to 55 per cent.”