First, tariffs should be lowered as carbon prices on the EU ETS should increase creating additional incentives on the energy market to develop low carbon power sources. In Germany, the feed-in tariff for photovoltaics was eight to ten times higher than the electricity price and more than three times the feed-in tariff paid to wind in 2009. Significant reductions have been implemented over the past two years but tariffs remain two to three times higher for solar compared to wind or hydro power.