Fresh questions are being asked about Germany's green subsidy regime after the government said last week that household consumers will have to pay 47% more to support renewables development - particularly solar power - in 2013, after a 6.2% rise last year and a 72% hike in 2010. Under the German Renewable Energy Act, or EEG, power companies have to buy solar and wind energy from producers at fixed prices, which are much higher than for coal- or gas-fired plants. As electricity prices for industry are heavily subsidized, households are left paying most of the difference between the fixed price, and the price utilities get for selling the renewable electricity on the German EEX exchange, through a surcharge. This surcharge has been skyrocketing, largely because of a massive expansion in solar capacity: From ?8.3 billion ($10.9 billion) in 2010, it is projected to total ?14.1 billion this year and ?20.4 billion next year.
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