In the meeting with the government in Berlin, German solar energy companies have proposed that the state should lessen their subsidy for industry sooner than it was planned so as to avoid deeper cuts. The government of Chancellor Angela Merkel wishes to cut the subsidy along with the decreasing prices for the panels producing electricity with the source being sun. This can reduce the demand for the products by some German companies like solar world AG and Q-Cells SE.

In a phone interview, Daniel Kluge, spokesman for the Berlin based German Renewable Energy Federation (BEE lobby group) was reported saying that solar industry showed a sign of readiness towards the adoption of lower aids. As a result, the demands of German solar panel producing companies like Solarworld AG and Q-Cells SE could be segmented.

The solar company is suggesting lowering down the subsidies by 14 percent in a year rather than of 9 percent yearly reduction abides by the current law although there was hardly any instant reply from the government. The government ensures a cost of 43 Euro cents per kilowatt-hour to the small housing owners of the solar-power driven systems; about twice the amount which is paid by consumers for a kilowatt-hour of the electricity.

According to German lawmaker Horst Meierhofer, the profits reaped by the solar energy companies has crossed double digits at the utility customers expense. His Free Democratic Party has called for profound subsidy cuts than the requirements of solar industry which comes under Merkel’s alliance towards this rule.
Frauke Stamer, Environment Ministry spokeswoman was quoted reporting that the ministry will have recommendations in the coming days as the discussions are being evaluated based on their requirements.
Solarworlds’s Chief executive office Frank Asbeck hoped that the original subsidy cut of 9% which the country wanted to implement could be commenced from mid-year beginning from the end of 2010.