As part of the efforts to reduce the dependence of fossil energy, many of the EU countries provide a generous subsidies to both the manufacturers and the consumers. The argument was solid.. sooner or later, the fossil energy will run out, the effect by be fatal for the nation. It make sense to prepare in advance.
The problem is, the solar energy is more expensive. The payback period is more than 10 years. You can make more profit by putting your money in the fix deposit rather than investing in solar energy. To overcome this, the subsidy system was introduced.
When the subsidy was announced years ago, many of the big companies jumped into the bandwagon and produced the solar cells. The sector is facing the problem of overcapacity and many of them cannot survive. It make it worst by the announcement of the cut in subsidy.
Germany just announced the reduction of subsidy of 20 to 30%. Projects above 10 MW will get no subsidy at all, those between 1 to 10 will get 13.5 euro for kilowatt-hour. UK is thinking of the same move, and signaled of cutting the subsidy by 50%.
Currently, the solar energy is facing two main challenges. Within the green energy concept, it has to compete with the off shore wind turbine. Many argue that the solar should be supported as the preferred source of alternate energy, it is easier to install and the maintenance cost is much lower that wind turbine.
