In Europe, Wind and Solar Feel Financial Crisis

Last week I wrote about the struggles of the solar and wind industries in the United States, as the financial crisis deepens.

European renewables are also affected — though not to the same extent — as bank lending has slowed.
For solar, the dark spot is Spain. Solar there had been growing at a breakneck pace, but last fall Spanish officials capped the amount of solar power that they would subsidize, amid concern about the expense.

Industry experts also report a seasonal slowdown for solar installations elsewhere in Europe, and that the broader concern is financing.

“What slows the whole process down are the banks,” said Andrea Zepf, a spokeswoman for Phoenix Solar, a German company, in an e-mail message. The banks are getting more choosy, she said, and taking longer to finance projects.

Ms. Zepf also said that until last year, banks and financial institutions in Germany covered 75 percent to 90 percent of the funding for big solar projects; now they pick up only 60 percent to 75 percent.

New York Times