NEW YORK ( TheStreet) -- Henry Ford once famously said that "history is bunk," and solar investors may be saying the same thing these days about guidance from the solar industry.
On Wednesday, Germany announced a proposal to slash its solar feed-in tariffs by 15% on rooftop and open-field projects, and 25% on farmland projects. What's more, Germany may move ahead with a soft cap on solar, which would trigger a further tariff reduction of 2.5% if an annual 3.5 gigawatt capacity target is reached.
It is not an exaggeration to say that a sizable portion of the solar supply/demand balance rests on Germany's ability to absorb capacity from the solar industry. To be fair, the rest of the world's solar capacity is expanding rapidly, and markets like Italy are poised to grow in 2010 specifically. Still, whether
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