Fiscal Policy or Influencing 2012 Solar Energy Industry Incentive Policy

The world’s two largest solar markets, Europe and the United States, have so far suffered from low demand and debt crisis. Industry sources pointed out that European countries and the U.S. government are working hard to resolve the debt crisis, so the reduction of the solar energy industry's encouragement policy will surely become possible. Companies that report optimism believe that the government can reduce the unemployment rate by supporting the solar energy industry. Therefore, although the economy is weak, the incentive policies may not be significantly reduced.

The supply chain has been suffering from low demand, and sustained price declines have caused companies to maintain a conservative attitude toward the future.

The solar market depends to a certain extent on the government's incentive policies, and the development of the global economy plays an extremely important role. Industry sources said that some companies believe that European governments will launch solar incentives in 2012 to save the country’s economy. However, they pointed out that solar photovoltaic systems are not necessary after all.

Other solar companies believe that the budget for the solar industry incentive program has been determined and will not be easily changed. In addition, changing incentive policies with economic fluctuations is not very effective because losing the solar energy industry will mean an increase in the unemployment rate, which will have a negative impact on economic development.