There is a bad news for companies enjoying solar incentives, as it has been confirmed by the German Government that a 15% cut in incentives has been decided upon in January and that could reach to as much as 24% if condition persists.

Though considerable solar incentives were given last year, it has been reported that in June and July, nearly 1.25GW of PV capacity was installed in Germany, which is a lot higher than the combined value over the last five months.

Owing to falling solar panel prices which led to dithering installation cost, the government took the hard decision to rehaul the scheme, which was introduced last year, in the month of June this year.

If reports are to be believed, it has been observed that solar panel prices have trimmed down exponentially, which has put excessive financial burden on large number of manufacturers.

Even it was reported, in July, that the German industry could not be sheltered with incentives as only 700 megawatts of newly installed photovoltaic capacity was introduced to the grid from March to May.

While Germany’s network regulator didn’t respond to the reports, it’s being feared that it could force other European countries to follow the footsteps.