New German coalition confirms solar subsidy cuts

The new German coalition government will cut feed in tariffs for solar power by more than the planned 8% reduction for 2010, according to a 128-page policy document published on Friday. The tariffs will now be reviewed every three years.

Angela Merkel's new coalition had previously said it was considering further cuts in solar power subsidies. The decision reflects the sector's increasing competitiveness, which means it needs less support from the government. Solar PV module prices have halved since 2000, according to trade association BSW-Solar.

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