In Spain, even the rising industry of renewable energy is not immune to the realities of the country’s sizable debt and broader economic woes. Just last month, the Spanish government slashed subsidies for any new wind or solar thermal projects in the country. The decision was in sharp contrast to last year’s move on renewable energy, when the Spanish government provided 6.5 billion Euros to utilities as pass-through subsidies to those who are generating renewable energy.

According to Business Day, Spain’s newest plan on renewable energy will “reduce the premium above the normal electricity price guaranteed for new solar projects by 45 percent for solar or farms, by 25 percent for large panels on office or factory buildings, and by five percent for solar panels on homes.”

Spain currently ranks second among the countries with the most installed photovoltaic (PV) generating capacity. But last week the Spanish government decided to go ahead with the newest plan to cut subsidies after talks broke down over how to make broader changes to the policy on renewable energy subsidies. The discord arose, according to Bloomberg, when government ministers and energy company executives were unable to agree on prices for existing solar plants.

The subsidy reduction could prove to be a fatal blow for some 600 photovoltaic (PV) solar plant operators. According to the Photovoltaic Industry Association, those operators would be in danger of bankruptcy as a result of the new policy.