Germany May Tax Sustainable Energy

Delaying subsidies and discussing taxes on sustainable energy producers, the German government is evaluating options to reduce the rising price of power.

Owners of wind farms and solar panels in Germany may face taxes on the sustainable measures for the first time as the government combats rising power prices throughout the country. In preparation for election year, Chancellor Angela Merkel looks to the energy industry to lower prices from consumers.

Sustainable generators may face a one-time payment to the government of 1 to 1.5 percent of their feed-in tariff. This should reduce the cost of sustainable expansion across the country by an estimated 300 million euros. Government subsidies for new installations will also be halted.

In addition to these efforts, cost for energy-intensive companies will rise as subsidies will be reduced and limited for producers like steelmakers and chemical companies. This should reduce the cost of phasing out nuclear energy nation-wide by 1.3 billion euros ($1.75 billion).

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