In what is seen as an inappropriate step by the government, new guidelines were issued by the Ministry of Industry which can affect an investment of 10 billion Euros and jobs of 10,000 people.
As a part of the new policy, the government may cut 35% of the solar subsidies by next year under its ‘feed–in-tariff’ program. The new policy could also make a distinction between panels placed on roof tops and those on the ground. Utilities are expected to pay 33 euro cents for each kilowatt-hour of electricity from rooftop systems and 29 euro cents for ground installations- a figure which presently stands at 45 euro cents.
It requires 300 million Euros to manufacture each plant which in turn generates electricity and 10,000 jobs per year. According to Protermosolar, this move is bound to affect 35 projects across the country and may lead to bankruptcy of several companies while many others will be discouraged and consider moving to other countries for investment.
Valeriano Ruiz, president of Protermosolar said that the technology sector needs more stability and such ‘erratic’ policies can affect the growth and development of the sector.