The German Federal Ministry of Economics, led by Minister Katharina Reiche from the CDU party, is reportedly planning to make significant cuts to solar subsidies. According to an unpublished draft bill, the subsidies for new small solar installations with a capacity of up to 25 kilowatts are set to be scrapped. This measure has been reported by various news outlets, including the Deutsche Presse-Agentur, suggesting that the proposal could have a considerable impact on the solar energy market in Germany.

The proposed changes come in the context of decreasing costs for small solar installations, which have enabled many systems to generate electricity economically without subsidies. This shift could alter the dynamics of the renewable energy sector, particularly for smaller businesses and individuals looking to invest in solar energy. The ministry has refrained from commenting on specific points within the draft, as it is still under development, indicating ongoing discussions about the future direction of solar funding in Germany.

Eliminating subsidies may lead to mixed reactions. While some industry experts believe that the market can sustain itself without government support, others fear that this decision might dissuade potential investors and consumers from adopting solar technology. The transition away from subsidies requires careful consideration of the potential environmental and economic implications, as Germany continues to focus on expanding its renewable energy capacity and achieving climate targets.