A surge of installations in the fourth quarter may be possible due to the 15% cut in incentive planned in Germany in 2012. UK also plans to cut incentives by 50%. The incentive cuts are likely to push up installations in the fourth quarter, according to industry sources. However, the global inventory backlog problem continue to plague the industry and this sudden surge of installations will not help to solve the problem effectively, added industry sources.

Despite the supply chain seeing decreased inventory levels in the third quarter, but has not been effective. The market estimates the global inventory backlog of solar modules is around 8-9GW.

According to Simon Tsuo, chairman of Taiwan-based solar cell maker Motech, the market desperately needs to regain balance, however, demand is likely to remain low through the first half of 2012. 

Source:digitimes