Press Release No. 11/2010 IG Metall: Planned cuts to solar subsidies harm the environment and jobs

Frankfurt am Main – IG Metall has criticized the federal government’s planned cut to solar power feed-in tariffs as hasty and short-sighted. “The federal government is taking a step backward in energy policy. This policy is harmful to both the environment and jobs,” said Wolfgang Rhode, executive board member of IG Metall, on Tuesday in Frankfurt. To date, 60,000 jobs have been created in the solar industry, primarily in economically disadvantaged regions or those affected by the decline of former industrial structures in eastern Germany. “This positive development must not be jeopardized by a hasty and excessive reduction in photovoltaic feed-in tariffs,” said Rhode.

The solar industry has the potential to create even more jobs in the future, provided the framework conditions are reliable. “Investments in new locations and the creation of new jobs in the photovoltaic industry must be secured for the long term. This does not mean permanent subsidies, but rather planning security for companies based on technological progress,” said Rhode. With its plans for cuts, the coalition is recklessly squandering this opportunity. The correct approach would be to scale back the current over-subsidization of photovoltaics and eliminate the existing windfall effects at the expense of electricity consumers. However, this is already being achieved through the established nine percent rate reduction effective January 1, 2010, and January 1, 2011. Furthermore, IG Metall sees a one-time additional potential for cuts, amounting to no more than half of the reduction of up to 16 percent planned by the federal government.