The German Solar Trade Association has warned of mass lay-offs in the industry if subsidies for new small-scale solar systems are scrapped.
"We have already seen many insolvencies and lay-offs in the solar sector, and this wave simply cannot continue," association chairman Peter Knuth told the Münchner Merkur newspaper in comments published.
The debate over ending subsidies has unsettled many consumers, he said. As a result, projects are being postponed for up to a year. "That is exactly what must not happen," Knuth stressed.
Minister questions need for subsidies
Conservative Economy Minister Katherina Reiche argued that new small photovoltaic (PV) systems are already profitable without state aid. Falling prices for equipment and storage, she said, mean subsidies are no longer necessary.
She also warned that the growing number of small, uncontrolled solar systems strains the power grid.
"That is why PV systems should be connected to electricity storage systems and be controllable, participate in the market and market their electricity," she noted.
Shortage of skilled workers threatens energy transition
People have worked for years to advance the energy transition, and now the sector faces losing employees who have gained expertise, said Knuth.
"Once these skilled workers leave the industry, it will be difficult to get them back," he said.
According to a forecast published by the Institute for Employment Research (IAB) on Monday, some 160,000 additional workers will be required across Germany by 2030 to expand renewable energy sources such as wind power and photovoltaics.
An additional 40,000 workers will be needed to address climate change impacts and implement adaptation measures, it reported.
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