Due to the uncertainties surrounding Italy's solar energy policies, a major European solar company reportedly has halted contract manufacturing orders to solar cell makers in Taiwan and China. Additionally, although solar cell makers have expected cell quotes to increase month by month, they are now more conservative and hope April quotes could stay steady, according to industry sources.

With a higher internal rate of return (IRR), Italy had previously been a strong driving force in the solar industry, but uncertainties on the upcoming solar subsidy cuts in May have spurred consumers and system-end companies to hold off on system projects. Some banks are also setting higher barriers for system finance.

Taiwan-based solar cell makers saw quotes fall 15% in the fourth quarter of 2010. Though prices have rebounded modestly since January, the order cuts could stunt the climb. Some solar cell makers indicated that demand has indeed cooled and expects April quotes to hold steady instead of a slight increase projected previously. Solar cell quotes are currently at US$1.22-1.25/W.