Spain Rethinking Solar Subsidies due to Repercussions
The Spanish government has found itself in a rather embarrassing position as a result of the generous subsidies offered solar generation facilities that created a stampede of low-quality, poorly designed solar power plants. By September of 2009, the government was forced to abruptly change tactics, cutting subsidy payments and capping solar construction to curtail the economic damage being inflicted on the region.
Because of their generous subsidy policy, by 2008 Spain was home to almost half of the new solar-power installations in terms of wattage. But Spain's failure in foresight has nonetheless resulted in understanding the need for solar companies to employ highly sustainable business practices, evidenced by the fact that the poorly planned solar power stations folded while the more efficient business models survived the subsidy cuts. Improving the way governments handle green tech subsidies to properly encourage clean energy production is essential if clean energy is to compete with environmentally damaging energy practices.
Spain is not the only country rethinking subsidies. Germany announced in January that it also plans to cut 15% of the solar roof installation subsidies and 10% of the farmland installations.