June 19 (Bloomberg) -- Germany, the world’s biggest solar market by total capacity, is set to install the fewest panels since 2008 after subsidies fell faster than prices.
Germany added 818 megawatts of panels in the first five months of the year, a 45 percent drop from a year earlier, the BSW-Solar lobby said today in an e-mail. If additions don’t gather pace, Germany will miss its target of 2.5 gigawatts to 3.5 gigawatts.
BSW-Solar said a government plan to tax self-consumption of solar power will accelerate the decline.
“We can’t reach our climate targets or give enough of an outlook to solar companies in Germany with such a shrinking domestic market,” Managing Director Joerg Mayer said.
The government has cut subsidies for solar power to reduce the cost of its plan to shutter nuclear reactors and expand renewables to meet 80 percent of domestic power demand by 2050. More than a dozen German companies including Q-Cells SE, once the world’s largest cell maker, and Solar Millennium AG have filed for insolvency as Chinese companies took market share.
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