Germany’s solar industry is booming, but some analysts say the country is making too many mistakes when it comes to financing.
In the US, a study by the International Energy Agency said solar power generated more than the cost of its cheapest competitors.
In Germany, solar companies have been criticized for their lack of transparency and opaque lending processes.
But for some analysts, the government’s subsidies are an important way to promote renewable energy, especially for low-income households.
“It’s very important to make sure that people can afford to buy solar energy,” Andreas Möller, a researcher at the Center for Energy Policy Research in Berlin, told Business Insider.
Möllers study, which looked at solar subsidies in the German solar market from 2015 to 2020, found that German solar companies received an average subsidy of nearly 40 percent of the total value of their installations.
He added that solar companies were likely to be subsidizing a large number of low- and middle-income customers, who typically have no choice but to install solar panels in the face of higher electricity costs.
“There are a lot of people in the middle who don’t have the financial resources to install a solar system,” Mörers study said.
“We think there are very few low- or middle-class people in Germany that actually get the benefits of a solar installation.”