Germany's move may 'force many Chinese producers into bankruptcy'
Chinese and European solar industry insiders have expressed disappointment after Germany's parliament finalized a cut in subsidies, saying the move has "shaken the sector".
From April 1, subsidies to the industry were cut by as much as 29 percent. The move is expected to slow the annual pace of installations by 50 percent in Germany, the industry's biggest market, and reduce solar panel exports from China, the home of the world's biggest producers.
"The whole sector will be shaken by the legislative decision," said Andreas Damm, director of Solarprojekte Gmbh, which has been installing solar panels for a number of years.
Damm said that even before last week's parliamentary vote, the industry had already been deeply affected by the proposal to cut subsidies.
The German government said that the use of subsidies has triggered rapid growth in the use of solar products in the country and claimed that the subsidies have caused electricity prices to rise.
The UK, Italy and France have also started to cut the subsidies they provide.