The quantity of solar energy that can be “sold” to the electricity network through the “prima” scheme has been cut by 30% causing the loss of 83 million euros and 500 jobs in the region, according to business people and farmers.
The “prima” scheme permits those who install solar panels to sell their excess production back to the network. This scheme proved extremely profitable during the boom years between 2007 and 2008 when the region produced 260 megawatts of solar energy compared to 40mw the previous year.
But in the light of the collapse of the construction sector central Government set out to avoid another “boom and bust” industry and curb the profits being made from solar energy. In November last year the “prima” was slashed by 25%.
However, last year’s cut did not deter agricultural cooperatives, small businesses and private residents investing in solar energy installations with the aim of recuperating their investment and earning some additional income.
There are 7,000 solar energy installations in the region and the majority of those are owned by small businesses or farmers who may now find this latest reduction in benefits renders their installations uneconomic, claim Santiago Martinez, President of the Federation of Farming Cooperatives in Murcia and Pedro Lencina, President of the farming organization COAG.
They say 500 jobs related to the industry will disappear in the region, some 20,000 farmers will suffer as a result of the measure and some 4,000 families could face ruin because, in light of the new cut, they will not be able to meet repayments for the loans used for the original installation.
“The majority have taken out loans over 10 or 12 years to pay for the installations, not as a form of speculation, but a means of earning a little more income and now they find they don´t have enough money at the end of the month to make the loan repayments,” claim the farmers representatives.
The farming groups and small businesses claim the measure, which is aimed at curbing the «excessive profits» of the large solar energy companies, will disproportionately affect those with smaller installations.
