According to the Associated Press, an energy expert with Angela Merkel’s Christian Democrats, Michel Fuchs, has announced that the next German government will consider reducing subsidies to solar energy producers, perhaps as early as 2010.

Apparently, the most successful technologies are those which will see the greatest reduction in support. The criteria for ‘success’ are not yet clear, but will include instances where technology development has led to price reductions.

The reasoning behind the cuts is a combination of the recession having tightened budgets and concerns within Merkel’s coalition over energy market competitiveness.

Reuters report that a new draft law will be complete by 31st December and that parties are interested in a thorough review of the Renewable Energy Act (EEG) in 2010.

However, it is still not clear how large the proposed cuts would be, nor whether they will apply to all solar technologies.

Shares of several solar power companies dropped slightly at the announcement.