Government policies are important drivers of solar markets. Specifically, energy policies, economic stimulus, consumer incentives, and supply- and demand-side policies have a tremendous impact on markets.
As the world emerges from global recession, the policy framework is shifting dramatically with the EU scaling back its support of solar installations and China shifting its focus from production to installation.
Feed-in tariffs are being eviscerated in the name of austerity, and regional portfolio targets are beginning to slide. The Spanish government has nearly put up the flag and surrendered its solar industry, while the responses in Germany and Italy have been more measured, likely staving off industry collapse.