Why are solar subsidies being withdrawn here and abroad?



  1. 0 Votes

    Although some subsidies and tax breaks for solar panels and development of solar energy have been scaled back, such as in Germany and Spain, there are plenty more that are still going strong. The 2009 US stimulus package, for instance, contains tax credits for homeowners who install solar systems. A recent high-profile case of withdrawal of solar subsidies occurred in Arizona just this week where a bill canceling solar subsidies was withdrawn by its sponsors after it had passed an important committee. The reason for the controversy in Arizona, and also apparently in Germany, seems to be a perception that solar power has been over-sold to governments, that it’s still expensive to establish and maintain and the jobs that solar power companies bring to localities aren’t worth the financial hit the government takes from giving away tax breaks. Is this true? That depends on your point of view. I wouldn’t expect to see solar subsidies go the way of the dinosaur any time soon. Solar power is still a promising area for renewable energy development, and as long as it continues to increase in importance, governments will probably give tax breaks for it.

  2. 0 Votes

    As for the USA, energy tax credits that were established in the past (30% of the expenditure with no limit) are valid through tax year 2016. Nothing changed so far.

    In Europe (and in Israel) the subsidy (the tariff for surplus electricity the utility buys from the consumer ) was reduced but the price of solar panels dropped to half of it was in 2009

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