"Critique on the Plan to Discourage Solar and Wind Energy Expansions: Mislabeling Them as Financial Burdens is Misleading and Risky"
In the ongoing debate about the future of renewable energy, Green Planet Energy, a leading cooperative in the sector, has voiced its opposition to a proposal by the Federal Minister of Economics, Katherina Reiche, to phase out subsidies for private solar plants.
The proposal, currently under discussion, aims to eliminate subsidies for these plants. However, Green Planet Energy believes that such a move could have detrimental effects on the renewable energy sector and the broader climate goals.
Carolin Daehling, Head of Politics and Communication at Green Planet Energy, made her stance clear in a comment made in Hamburg on August 11, 2025. She expressed concern that framing wind and solar as cost drivers is not only wrong but also dangerous, as it puts the acceptance of the energy transition at risk.
Daehling's comment comes amidst growing concerns about the role of subsidies in the renewable energy sector. Subsidies have been instrumental in attracting investment, creating jobs, and accelerating the transition from fossil fuels to renewable energy sources.
The argument against phasing out subsidies is multi-faceted. Economically, subsidies help ensure the stability of the renewable energy sector, foster market competition, and encourage research and development. Environmentally, they play a crucial role in reducing greenhouse gas emissions and accelerating the transition to renewables, which is essential for climate change mitigation efforts.
For consumers and homeowners, subsidies provide incentives to adopt renewable energy technologies, such as solar panels, and help make these technologies more affordable. Technologically, subsidies support the development of more efficient and cost-effective renewable technologies.
As a non-profit cooperative, Green Planet Energy engages politically for a socially just energy transition. The company, which sources electricity from 100% renewable energies and operates wind and solar parks, electrolyzers for the production of green hydrogen, and only sources electricity from direct supply contracts guaranteed without coal or nuclear power, supplies around 200,000 households and business customers with innovative green electricity and gas products.
Green Planet Energy supports customers, companies, and municipalities in their energy transition, from their own heat pump to PV plants and tenant electricity projects to municipal heat planning. The company also emphasises the importance of private solar plants in sector coupling and the synchronisation of electricity consumption and generation without straining the grid.
While there are valid arguments against phasing out subsidies, there are also considerations for land use and market distortions. A balanced approach that supports the transition to renewables while addressing these concerns is necessary for a sustainable energy policy.
[1] [Source for land use and market distortions considerations] [3] [Source for proposal to end subsidies]
