From the first quarter of 2011, shipments are forecast to decline by close to 10% quarter-on-quarter, the analyst says.

Research Analyst Sam Wilkinson says: “We predict the return of classic seasonal installation patterns and forecast that completed installations will decrease by nearly 40% in Q1 2011 versus Q4 2010.

“This fall in demand for installations after 31 December 2010, combined with huge expansions certainly poses some problems for the market.

“We predict a sharp slowdown in module shipments from Q4 2010 and PV module prices are forecast to decline once again during the first half of 2011,” he concludes.

In the first quarter of 2011, solar PV module prices are predicted to decline 8%.

The beginning of 2010 was boosted due to the expected reductions in support for solar PV modules in Europe.