The solar industry is once again in crisis. European companies cannot prevail against cheap competition from China. Subsidies should help. But where does it end?
The President of the Leibniz Institute for Economic Research Halle (IWH) rejects the requested subsidies for the solar industry in Germany. “Subsidizing the mass production of solar panels is not a sensible use of taxpayers’ money,” said IWH President Reint Gropp to the German Press Agency.
Instead of subsidizing in Germany alone, consideration should be given at the European level to how supply chains could be set up more broadly. A subsidy race within Europe must be avoided at all costs. Even when it comes to gas, Germany managed to reduce imports without anyone freezing – despite its dependence on Russia. “Politicians should not underestimate the ability of an economy to adapt in real crises.”
It is not surprising that the production of solar panels in Germany is not profitable compared to China, said the IWH President. However, this is not a reason for subsidies. Germany should instead concentrate on research and also include alternative energy sources.
The Meyer Burger company had threatened to close its solar module production in Freiberg, Saxony. According to its own information, the company is the largest solar module producer in Europe. Meyer Burger and other industry representatives are demanding money for a higher feed-in tariff. Users of European-made solar systems should benefit from this. The more European a product is, the more bonuses there should be. The main criticism is the cheaper competition from China, which is subsidized.
Source: Stern
