Solar installations usually increase significantly before the effective date of solar incentive cuts. New solar installations in Germany reached 4.37GW (total installations in Germany in 2010 and 2011 were both around 7.4GW-7.5GW) in first-half 2012. In particular, installations in June alone reached 1.69GW.

Due to increasing installations, Norway-based REC and Germany-based SolarWorld both reported that second-quarter 2012 shipments saw on-quarter increases of 13% and 16.4%, respectively. Germany's revised renewable energy policy with steep cuts to solar incentives became effective in July 2012.

Stimulated by federal and state subsidies, rooftop and solar-powered plant installations in the US were 1.7GW in first-half 2012, showing an on-year increase of 127%. Benefiting from increasing installations, total second-quarter shipments of PV inverter firms-SMA, Power One, Advanced Energy and Satcon, reached 3.7GW, representing an on-quarter increase of 30.7%.

Digitimes Research pointed out several factors that are likely to influence the global solar market. Many countries in Europe have put in effect revised solar incentive policies that include subsidy cuts. Despite the surge of installations in the first half of the year, market demand is expected to shrink in the second half of 2012.

The US market is expected to see rapid growth due to policies such as Renewable Portfolio Standards (RPS) that promote solar installations. Other factors such as the possible retaliation from the China government on trade barriers set up by Europe and lack of low price solar products in the US may also influence the global solar market.

Furthermore, the preliminary results of the anti-dumping investigation against China-based solar firms in Europe is likely to cause market turbulence.

Domestic solar companies say anti-dumping measures counterproductive (September 13) - China Daily

First Solar beats Chinese by making sun power predictable (September 13) - Bloomberg

Corporate giants are leading the solar charge (September 12) - Newsweek

China, EU to negotiate over solar panel friction (September 12) - China Daily