June 28, 2012.German Chancellor Angela Merkel's government won agreement on cuts to solar-power subsidies and plans to store greenhouse gases underground, breaking a deadlock that threatened to hold up the country's energy transition. Under the deal reached with Germany's 16 states in a panel of arbitration, the government will maintain a solar "growth corridor" of 2,500-3,500 MW a year, Environment Minister Peter Altmaier said. There will be a cap on subsidies at 52 GW, at which point a new formula will be found, he said. A new category will subsidize mid-size roof systems of 10- 40 kilowatts at 18.5 euro cents ($0.23) per kilowatt/hour, higher than planned, the upper house of parliament, where the states are represented. Otherwise, new installations will be subject to subsidy cuts from April 1 as envisaged.