The Spanish government has recently announced that it has forwarded a proposal for a regulatory decree to Spanish national energy commission to reduce subsidies for future photovoltaic solar plants by around 45 percent.

The above declaration was made by the industry ministry of the country.

According to the new scheme, subsidies for open-field solar farms will be reduced by 45 percent, and those for large roof-top installations will come down by 25 percent.

Meanwhile, subsidies for small roof-top installations will reduce by 5 percent under the new scheme.

Further, the ministry said in a statement that the subsidy reductions take place as technological upgradations have dropped costs in the photovoltaic segment.

In the meantime, Photovoltaic solar power converts the rays of the sun directly into electricity with the use of solar panels.

The ministry didn't announce that when it aims to release the decree, or when the new measures will begin.

The statement said, “The government also wants to limit the time period in which subsidy payments will be granted under an old regulation for plants built until September 2008 to a maxiumum of 25 years.”