Germany says cuts won't harm solar sector

BERLIN (Reuters) - Germany will cut support to solar energy under its renewable energy law from 2009, but the cuts will be too small to harm the growing sector, Environment Minister Sigmar Gabriel said on Thursday.

In an interview with Reuters, Gabriel said the government plans to raise support for renewable energy sources such as offshore wind as part of the efforts to raise the share of renewables to 45 percent of the German power by 2030 from 12.5 percent now.

Gabriel said there was draft legislation for a "moderate acceleration" of cuts, or degression, in support for photovoltaic energy from 2009, but said there were discussions continuing with PV manufacturers and nothing would be done to harm the sector.

"We're talking closely with the sector and we won't do anything at all that will cause the sector difficulties," Gabriel said.

"There's a discussion about accelerating the degression but it will be moderate and in consultation with the sector."

The government will prepare a draft this year to update the EEG. It is expected to be passed by parliament later this year or early next.

Among the measures proposed are accelerating the annual degression to seven percent, up from five percent currently, for PV roof installations and to 8.5 percent from 6.5 percent for other installations in open fields.

"It's supposed to take effect in 2009," Gabriel said. "But it is likely that all in all there will be more (support for all renewables) than less."

Gabriel also said that the government was planning to support other forms of renewables, such as tapping underground heat, called geothermal energy. He said that would be supported directly by the federal government, rather than by set prices, with some 350 million euros earmarked for the years ahead.