The German Environment Ministry said on Thursday it will not cap solar subsidy cut payments for new plants increased capacity exceeding 1 GW and nationally in any one year and to present a solar power subsidy cuts by six months 1 July. The cuts could be as high as 15 percent, if projections at the end of May suggest more than 7.5 gigawatts in new capacity will be installed in 2011.

Ministry spokeswoman in Berlin said it had notified the firm to steadily reduce aid annually as well as apply a cap on subsidizing “overcapacity.” “But the interest of electricity consumers, the subsidies must be made more cost-effective. "

German authorities say they do not want to harm the fast-growing sector. Caps subsidies devastated the field in other countries and Germany, wants to avoid that, officials said. Germany’s "feed-in tariffs" have been profitable for businesses, and individuals to install the panels for their roofs or build solar parks. Solar energy is still relatively expensive, but the feed-in tariff makes it worth ensuring an artificially high price for someone offers solar energy to the national grid.

Europe’s largest economy is the world’s largest market for photovoltaic, which turns sunlight into electricity, helping to drive down the prices of photovoltaic systems.

Industry picked up the Renewable Energy Law (EEG) in 2000, which guarantee payments to investors in the market of solar energy for 20 years.

The Panel’s recommendation of a 1-gigawatt cap "to strengthen its policy position," the Christian Democrats, the economic spokesman Joachim Pfeiffer said in an interview. "We must look at the sun during the subsidies and the cap on the renewable energy law," Pfeiffer said.

At the same time trimming the latest solar subsidies in Germany welcomed on Wall Street because they were less harsh than expected. Investors have seen nothing "dramatic harm to the industry" the world’s largest solar power market according to The Wall Street Journal, which is why "solar energy manufacturers, particularly in China, saw their stocks jump more than 10 percent."