PV system installation in Germany has been stalling and if the situation continues, it is likely the planned incentive cut in July 2011 will decrease in magnitude. In addition to this, the price of solar products has been falling rapidly. The low price is expected to stimulate demand, and therefore some industry sources are optimistic about the Germany market in second half of 2011.

In the first half of 2011, the Germany market has been stagnating due to consecutive incentive cuts that began in the second half of 2010. However, the falling prices and low demand might bring a smaller incentive cut in July, accroding to industry observers. Most incentive programs adjust the magnitude of the cuts according to installations. In March, the total installation for Germany did not exceed 200MW, and it is believed that April will demonstrate the same amount. If the situation continues, the incentive cut in July will likely to fall between 0-3%, according to industry sources.

Futhermore, a decrease in price should move consumers to higher demand, and therefore some industry sources believe the demand will return as prices have been falling so rapidly.

The nuclear crisis in Japan has highlighted the importance of developing renewable energy sources. Hence, many Taiwan-based solar PV firms such as Gintech, Neo Solar, Motech, Solartech, E-Ton, GET, and SAS remain optimistic about the solar industry in the long-run.