Analysis of renewable energy subsidy policies; German and Hungarian conditions

In accordance with the 3×20 target of the European Commission, the share of the total energy consumption from renewables should be more than 20% by the year of 2020. However, the question of “how” rises in many places. What should be the level and extent of subsidy given to the different renewable sources? Many pros and cons can be heard in professional discussion regarding this topic and will be discussed in this paper. In this work, the solar energy is emphasized from the renewables. At the beginning, the solar power industry is described briefly. Afterwards, in technical and economical terms traditionally called “model country”, Germany and its approach are presented. In the next section, the Hungarian situation and the taken steps are compared. At the end of the paper, a possible direction is presented for the future based on the experiences so far.