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Don't Miss The Great Solar Debate: Where Does the Global Solar Industry Stand? Click Here to Register! ×

Protest in Germany: "Protect Solar Jobs!"

Paul Hockenos, Contributor
March 06, 2012  |  25 Comments

"We are the energy transition!" read one of the many placards hoisted in the air at the Germany-wide "Stop the Solar Energy Exit" demonstration at Berlin's Brandenburg Gate on Monday. According to the event's organizers, 11,000 people were on hand for the protest against the Merkel government's energy policies.

The protesters and speakers from the three main opposition parties – the Social Democrats, Greens, and the Left Party – as well as the solar power industry, and several major trade unions accused the center-right government of undermining Germany’s historic Energiewende, or energy transition. In the aftermath of the Fukushima disaster, the government shut down half of its nuclear power plants and pledged to accelerate the country’s transition to renewable energies.

Yet, nearly a year down the road, there is still no overreaching strategy for Germany to meet the ambitious targets it set for itself, including having 36 percent of its electricity generated by green sources in 2020. Moreover, in recent weeks the government announced a draft law that includes hefty reduction in the subsidies that solar power receives from its Feed-in Tariff. A second element in the draft law shifts responsibility for the amount of renewable electricity eligible for support from parliament to the ministries. This has Energiewende proponents worried that investors will be subject to short-term ministry decisions that will undermine security of planning and financing of projects.

The moves triggered a storm of protest from the solar industry, members of which claim that the abrupt and steep cuts will endanger Germany’s aggressive solar energy development and jeopardize tens of thousands of jobs.

Günther Cramer, president of the German Solar Energy Association (BSW-Solar), kicked off the demonstration saying, “The goals of the energy transition can not be achieved when solar energy’s growth is strangled. The vast majority of Germans are in favor of an ambitious expansion of renewable energies and solar,” he said, referring to opinion polls. He demanded that the government, “Not disrespect the will of the people.” Only the giant energy companies will profit from a reduction in solar energy's capacity in Germany, he underscored. “We’re taking a piece of their market. That’s why solar energy is a thorn in their side.”

The demonstration, on a cold but brilliantly sunny day, had a strikingly different feel than the anti-nuclear energy demonstrations in recent years, the largest of which in Berlin last year drew nearly 250,000 people. At this event, the solar power industry and its workers turned out in full force. Some in their work clothes, others in t-shirts that read “Protect Solar Jobs,” they wielded printing-shop-produced posters and orange balloons. The demonstrators traveled to Berlin from across the country, even as far away as Bavaria and Denmark.

Likewise, the ample number of trade unionists present was exceptional. For decades the unions had been at odds with the concerns of the environmental and anti-nuclear movements, which they claimed was elitist and would cost jobs. Now, as the Social Democrats’ party leader Sigmar Gabriel put it at the demonstrations, the renewable energy industry provides people jobs in parts of the country where there hadn’t been any jobs at all. The goal, he said, was to double them, not to lose them all. "It’s not just about the solar industry,” he said, explicitly linking jobs to environmental concerns. “It’s about whether we’re going to make the Energiewende happen or not.”

Image: German home with solar power via Shutterstock

25 Comments

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ANONYMOUS
January 12, 2013
In comment #24 Kangas writes:
"The Feed in Tariff (FIT) that is used in Germany, Japan, China & 71 nations,
does not get any funds from public taxation therefore it is not a subsidy."

FITs ARE subsidies; the definition does not restrict subsidies to tax based funds. In particular, FITs are government mandated transfers of funds from one group of people to another group of people for a government designated purpose--that is a subsidy. Taxes are not the only possible funding mechanism for a subsidy and moreover they are not the worst because taxes are not as regressive as the funding mechanisms typically used for FITs. FITs typically generate funds by fees applied to all electricity consumers regardless of ability to pay; thus, funds are partly collected from poor pensioners dwelling in small apartments who are compelled to subsidize solar PV systems placed on the roofs of affluent home owners. Kangas claims to be a legislator writing FIT laws in CA; if true, perhaps he will find this characterization of his work disquieting. Perhaps he will even be prompted to seek honest work instead of attempting to promote government enforced transfer payments from the poor to the rich.

Kangas also writes: "This makes Germany the greenest nation on earth."

He might be interested to note that Germany has INCREASED its reliance on coal for electricity generation this year. Generation from coal increased from 43.1% to 44.7% over the last year. (See http://www.germanenergyblog.de/?p=11916#more-11916) The greatest progress in CO2 reduction is actually occurring in the US where cheap natural gas supplies are causing dramatic REDUCTIONS in coal-fired electricity generation.
Steven
Paul Kangas
Paul Kangas
January 12, 2013
The Feed in Tariff (FIT) that is used in Germany, Japan, China & 71 nations,
does not get any funds from public taxation therefore it is not a subsidy.

All the money comes from the sun.
That is the new gold rush, --- cash from the sun.
I know some of you may find it hard to understand how solar energy is now the new cash flow on earth.
This makes Germany the greenest nation on earth.
Germany will save the world from climate collapse.
Jan de Boer
Jan de Boer
March 15, 2012
@Kangas: you must have misread my last post. We agree. (But even if we did not agree, no need to misspell my name in an insulting way)

@Rolf: You miss the point of the EEG. The main point of the EEG is to help renewable technologies to reach the point where they can compete without government support. Technology development requires research, learning by doing, and upscaling. The later two will only happen if manufacturers get to actually produce and sell their products. The huge cost decrease of the last ten years is caused mainly by learning by doing and upscaling, that has only been possible due to the artificial market, generated largely by the German EEG. The current 3% contribution to the power production is Germany is not the end but just the beginning. Every GW added will be cheaper as the previous one, and will also make the next GW even cheaper.

Even if there will be a silver-bullet new PV technology that slashes costs overnight, it will still profit from built up infrastructure and know how. However, history tells us that technology development seldom works like that. Even Watt's steam engine was just an improvement upon an already existing steam engine.

Regarding your opportunistic concern for the rate-payer: As I explained in another post: the real profiteers are the energy intensive industries. They profit enormously from the reduction in market prices due to PV. (Currently prices during daytime peakhours are lower than at night), yet these companies are exempt from paying the EEG-contribution. This is a major flaw in the EEG.

By the way, in Germany you do not need to be rich to build a PV system. Because it is a certain investment, banks offer relatively soft loans, so investing in PV is possible for everybody owning a roof.
rolf westgard
rolf westgard
March 15, 2012
The total effect of Gemany's solar panels is to tax ordinary rate payers so that the rich can decorate their roofs with solar panels, which supply a trivial amount of Germany's grid power. We do need to continue research on solar. My new class will shortly hear from an expert on nano technology which has the potential to improve solar efficiency. But boondoggles like Ivanpah in my opinion don't help the cause.
Paul Kangas
Paul Kangas
March 14, 2012
JdeBore. ... The growth of Solar power in Germany is a necessary change to the economic class structure of Germany.
The 4 huge utilities who own and control Germany pushing drugs like: filthy coal, dirty oil, fracking gas and deadly nukes are all dead end companies.
The world is rapidly running out of clean air & dirty oil. The FITs are our life preserver. We can't let the utilities & ministries puncture our life preservers.

For our children's sake, we must re-double our efforts to install even more solar panels until we have Germany, Japan & the world running 100% from SOLAR & RE.
Remember Fukushima. Remember Hermann Scheer.
Youtube: paul8kangas
Paul Kangas
Paul Kangas
March 14, 2012
Rolf - It is a shabby arguement to tell our children, "Well we could have save our air & water from filthy coal pollution & climate chaos, back in 2012, but a few rich people, who own the Parliment, didn't want to pay $3. a month to invest in solar panels for our roofs".
The tipping point is very near. Germany could make 100% solar & RE by 2030, if they had the human potential. Germany has the technological potential. It has the financial potential. Where is the moral potential?
The secret agenda of those opposed to the FITs is they don't want the 10,000 homeowners who now supply 23% of the energy of Germany to grow Solar stronger. We are all Hermann Scheer.
Paul Kangas
Paul Kangas
March 14, 2012
The Feed In Tariff law requires private utility companies to buy Solar energy from homeowners who harvest a surplus, and pay the home owners triple the market rate.

This law is reasonable.
It makes investing in solar fair and a good investment.
This feed in tariff was set up because the world is already out of clean air, water & soil.
We must stop polluting the air with carbon.
Why burn the last ton of filthy coal?
Soon the world will be out of dirty oil, dangerous gas, deadly uranium and filthy coal in 50 years. The legislative intent of the law is to shift the world economy to solar.
As the author, my good friend, Hermann Scheer explained in his book: "Energy Imperative" "We are in a race against time. We must shift to solar & RE 100% by 2030."
Can we win this race.
The utilities are trying again to defeat the law.
They lost in the Supreme Court, now they are trying to bribe Merkel, because Scheer is dead.
Merkel had to kill Scheer before she could try to change the law.
Scheer will rise from his grave and defend the law.
Youtube: paul8kangas
Paul Kangas
Paul Kangas
March 14, 2012
Wow
Jan de Boer
Jan de Boer
March 14, 2012
@Thomas (comment 1): You may not be aware of the details of the German FiT system. Regular tariff cuts have always been a part of the system. In the last five years the tariffs have been halved! The PV industry is working very hard to continuously decrease cost. However, if the tariffs are now cut quicker than the industry can decrease cost the sector is strangled just before it reaches adulthood.

Another important point of the new law is that decisions over future tariff changes can be taken by the minister without parliamentary control. Since the current German government is highly interested in defending the vested interests of the large power corporations it is to be expected that they will use their new power to prevent renewables to become a threat to these corporations.
Jan de Boer
Jan de Boer
March 12, 2012
In Germany they use a nickname for the new version of the EEG (renewable energy law): Energiekorzern Erhaltungs Gesätz (Energy company preservation law).

PV installations produce the largest amount of power during hours of peak demand. This is good for the grid, and good for reducing electricity prices, but bad for electricity companies who made lots of easy profit during these peak demand hours. This threat to the vested interests has to be removed, hence the abrupt actions of the right wing ministers.
Jan de Boer
Jan de Boer
March 12, 2012
If nuclear is so great:
Why does it have to be insured for free by the taxpayer?
Why does the taxpayer have to pay to store and guard the waste?
Why is there still no real solution for the waste that remains dangerous for 350000 years?
Why does it need hidden subsidies and tax-breaks?
Why do serious nuclear accidents happens like clockwork?
Why do newly built nuclear plants turn out twice as expensive as planned?

If coal is so great:
Why are the external cost larger than the marginal cost of the produced electricity.
Why are they a major contributor to climate change?
Why do they need hidden subsidies and tax-breaks?
Why does the mining of the coal destroy landscapes and nature?
Gary McCallum
Gary McCallum
March 8, 2012
Rolf does not seem to understand the need to get the world off of oil and if subsadies are needed to promote alternatives so be it. I have not seen the negative consiquences of CO2, health hazards, burning up our childrens future, mountain top removal and its enviromental degregation or the fact the increasing efficiency and solar can change the whole picture dramatically worked into his equasions.
Narrow minded thinking gets limited posative results. While America is in its economic doldrums more of the same will ensure a bleak future.
Peter Lynch
Peter Lynch
March 8, 2012
Rolf - have a great weekend

As to nuclear - any source of energy that cannot be insured by our national arbiter of risk - the insurance companies is NOT
for me.

Too much risk - too little return. As long as "acts of God" apply nuclear is a no go.
rolf westgard
rolf westgard
March 8, 2012
Then there is nuclear's potential where converting a pound of matter to pure energy releases about 8.5 billion kwh. Or millions of times more than conventional combustion of that pound.
FWIW I agree that solar has the best potential of the so-called renewables. A wind turbine is tons of steel and concrete, human labor, and rare earths. Not much potential to reduce costs of those.
Peter Lynch
Peter Lynch
March 8, 2012
Like I said - we can agree to disagree.

There are two ways to look at our energy situation long term and short term

I am looking at it looking at it long term and given the expected demand - solar is the only resource that can meet it.

Short term thinking does not effect the short term - only the long term when it is too late.
rolf westgard
rolf westgard
March 8, 2012
The huge difference in subsidies to the green scams is because they produce so little energy. And subsidies are different for oil and gas. They are deductions from taxes that are available to all industries for depreciation, etc. Oil and gas are big profitable operations, so those tax deductions are also big. they do fine with or without the deductions.
Wind and solar lose money, so tax deductions from non-existent income aren't worth much. so they need direct cash handouts and mandated use at above market prices for their energy. Without big handouts, those program die fast.
Peter Lynch
Peter Lynch
March 8, 2012
rolf - We can certainly agree to disagree. But you oil subsidy number is not apples to apples and is very misleading. The oil industry has been getting BILLIONS of dollars of subsidies since 1894 - don't you think they can get off the government dole by now.

Also no where is the external costs of using fossil fuels counted. If you count them - there is no contest.
rolf westgard
rolf westgard
March 8, 2012
That FIT subsidy in Germany is from rate payers. The effect is that low and middle income householders pay the high income people who can afford the upfront cost of decorating their roofs with solar panels.
As to subsidies, current EIA figures show that per unit of energy produced, solar receives $63 per barrel of energy equivalent; wind gets $32,59; and oil and gas receives $0.28 cents.
Germany's huge solar subsidies created jobs at first. They are now lost to the Chinese who supply the panels.
Peter Lynch
Peter Lynch
March 8, 2012
A couple of comments to try to clarify a few points:

1. The Feed in Tariff (FIT) that is used in Germany does not get any funds from public taxation therefore it is not a subsidy.
2. The average increase on electricity costs to the average utility user in German is 3%. Electricity is about 20% of a German residences total energy bill, the majority goes to heating. 3% of 20% of the average bill is tiny - 3 or 4 dollars/euros per month.
3. The FIT also - NOT counted in these calculations - creates jobs, brings industry to the country to make the solar equipment and enhances national security by decreasing German need for Natural gas which they import most of from Russia.
4. Hefty subsidies ?? First not a subsidy and secondly not even close to the subsidies that have been given to fossil fuels for the past 50+ years and to the nuclear industry whose subsidies are even higher.
rolf westgard
rolf westgard
March 8, 2012
Actually electric cars are using energy provided most by coal. And the collapse of electric car sales in the US forecasts what will happen in europe. Solar provides about one tenth of one percent of US electric energy. Coal is nearly 50%. EVs now rank with the wind and solar scams for taxpayer losses.
Ralph Perez
Ralph Perez
March 8, 2012
It would be sad to see any type of slowdown in solar growth. Especially at a time when the German electric car industry is ramping up growth. Germany and China looked to be the first of all nations to be driving vehicles primarily using the clean energy of sunshine.
ANONYMOUS
March 7, 2012
The author writes "Yet, nearly a year down the road, there is still no overreaching strategy for Germany to meet the ambitious targets it set for itself, including having 36 percent of its electricity generated by green sources in 2020."

Well, one would not want an "overreaching" strategy although one could argue strongly that they have had one for some time! Perhaps the word the author was intending to use was "overarching".

Steven
ANONYMOUS
March 7, 2012
It is time for alternaitve solar energy to take its place amoung the 10%-15% oe enegy avialable as designed by God

Any questions ask God solar has been around since the beginning when God created the universe then the earth
rolf westgard
rolf westgard
March 7, 2012
If solar is so great, why the need for those hefty subsidies?
Thomas M
Thomas M
March 6, 2012
Rather than protesting, they should put their efforts and resources into growing and continuing the solar revolution, without gov. involvement. After all, it is the people's money that gov. uses to instill programs and policies. Deprive the gov. of these funds and use them to reduce gov. involvement and increase the public's involvement.

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