The German government announced to reduce the solar power energy subsidies by 15 percent on new installations if more than 3.5 gigawatts are forecast for this year.

For the sake of industrial development Germany’s government  has given high solar power rebates and other renewable energies since 2000.The Industry hopes to reduce costs so that it no longer needs support from 2017, Cramer says.

Companies want to increase the share of solar energy in Germany, the overall energy production of about 2 per cent is now 10 per cent in 2020, when the capacity is 70 GW, Cramer added.

The Ministry of Environment said it would take 15 percent cuts, if capacity is anticipated this year more than 7.5 GW. The deduction is 12 percent if the new projects exceed 6.5 GW, 9 per cent if they are on top of 5.5 gigawatts, 6 per cent more than 4.5 gigawatts, and 3 per cent if more than 3.5 gigawatts, according to agreement. The Scaled plan has been approved by Parliament to take effect.

The German solar industry’s leading solar electric equipment in the world, hopes to improve its competitiveness and promote exports, the industry group mangaging director Carsten Koernig said.

"Asian producers are now serious competitors. The government in China is doing a lot in this respect, they are (grant) program worth billions" Koernig said.