Jan. 15 (Bloomberg) -- Solarworld AG and Q-Cells SE led declines among Germany’s solar power companies after Reuters reported that the government will reduce aid to the industry by more than some analysts estimated.

Solarworld slumped as much as 6.5 percent in Frankfurt trading, the biggest intraday drop in more than four months. Q- Cells fell as much as 5.7 percent, while Solon SE lost as much as 7.1 percent.

Chancellor Angela Merkel’s government is seeking to trim solar-power subsidies after prices for photovoltaic panels fell last year. A reduction of as much as 17 percent in April, as reported by Reuters, would be “negative for the whole sector,” UniCredit SpA said today in a note to clients.

That’s deeper than the 10 percent cut estimated by UniCredit and would come three months sooner than expected, Munich-based analyst Michael Tappeiner wrote. A drop in German demand could cause a global surplus in the first half and reduce prices for solar equipment by 10 percent or more, he said.

Solarworld retreated as much as 1.025 euros, the most since Sept. 1, and traded down 73 cents at 14.945 euros as of 10:58 a.m. local time. Solon fell 60 cents to 7.82 euros and Q-Cells dropped 70.5 cents to 11.665 euros.

“The subsidy cuts would initially reduce investment returns in the ground-mounted solar park segment to unattractive levels,” Tappeiner said. Q-Cells and Phoenix Solar AG have the “largest exposure” to these large-scale power generators in Germany, according to the analyst.

Phoenix Solar sank as much as 7.3 percent to 37.56 euros, the biggest intraday decline since Nov. 12, and traded at 38.55 euros as of 10:58 a.m.

Germany won’t make a decision on solar-power subsidies until next week at the earliest, Environment Ministry spokesman Ronald Heinemann said today by telephone.