Germany aims to delay solar incentive cuts: sources say

BERLIN (Reuters) - German Environment Minister Norbert Roettgen wants to delay his proposed 15-percent cuts in solar power incentives by one month until May 1 rather than April 1, government sources told Reuters on Friday.

Roettgen has faced criticism from within his own party, with regional leaders urging him to delay or water down his proposed 15-percent cut in the incentives that utilities are obligated by law to pay producers of solar power.

Solar power companies in Germany, where about half of the world's photovoltaic energy is produced and fed into the grid, have also complained about Roettgen's proposed cuts. They said they are too steep, too fast and will kill jobs.

The government sources also told Reuters that further cuts after 2011 could be steeper than Roettgen is now planning.

If there are more than 3,500 megawatts of solar power capacity added within one year the cuts would sink 3.5 percent in the following year instead of 2.5 percent now planned.

A spokeswoman for the Environment Ministry declined to comment on the Reuters report. She said members of parliament were now discussing Roettgen's proposal.

The sources also said the proposal to push back the 15-percent cut by one month had been agreed in consultation with leaders of Chancellor Angela Merkel's Christian Democrats and their Bavaria sister party, the Christian Social Union.

The government sources said Roettgen was still seeking backing from the Free Democrats, junior coalition partners, for his proposal to cut the incentives called feed-in tariffs (FIT) that have helped make Germany a world leader in solar power.

The sources said the plans to reform the Renewable Energy Act (EEG) will be discussed in a cabinet meeting in two weeks.

(Reporting by Markus Wacket; writing by Erik Kirschbaum)