Government approves reduction in subsidies for solar energy plants

The Czech government has approved a draft law that would reduce subsidies for new solar energy power plants, in an attempt to reign in the booming sector. Generous feed-in tariffs helped make the Czech Republic Europe’s third largest solar market in terms of new capacity last year. Many fear the boom could lead to a marked rise in energy prices in 2011, which could hurt competitiveness. Under the new legislation, high fixed tariffs would not apply to new solar plants built on land – only those on the roofs of buildings.