On the heels of the UK’s announcement that they were cutting solar subsidies in half, Germany, solar wunderdkind, seems threatening similar policy action.

Angela Merkel’s conservative party, the Christian Democratic Union, is endorsing cuts to solar subsidies that have so far, paired with extensive solar mandates, been the lifeblood of Germany’s booming solar industry. Germany is the third largest producer of solar cells after China and Japan, and houses half the solar systems, , , on earth.

Germany’s solar success is even more remarkable considering it’s cloudy climate. It has been the product of paired mandates for solar energy and, at least initially, subsidies that made solar as affordable as fossil fuels. The infusion of government euros has revitalized parts of East Germany, encouraging thriving communities that were just years ago dangerous ghettos.

Yet conservatives say that solar is doing too well for its’ own good. Conservatives argue that solar is increasing energy bills, ignoring the fact that fossil fuels are peaking, also causing increased energy bills. With questions of market demand and pricing still very uncertain, policy makers are in a bit of a wilderness. Pointing to the US and Japan, proponents in support of maintaining solar subsidies explain that at least initially, renewable energy markets will need strong and long term governmental support to remain cost effective.

Read more at the NYTimes.