High feed-in tariffs and no cap on total PV capacity fueled Spain's solar boom in 2008. Then, in 2009, a 25% reduction in feed-in tariff (FIT) rates and a cap of 500MW—2GW less than Spain installed in 2008—effectively pulled the rug out from underneath the world's largest market. Fast forward to 2010, and the Czech Republic is poised to have installed over a gigawatt of PV, up from only 50 megawatts in 2008. This year it will be the world's third-largest market behind Germany and Italy, with its massive growth fueled by generous FITs. However, looming FIT cuts of more than 50%, and the elimination of some incentives entirely, ensures that the Czech Republic, much like Spain, will suffer a drastic drop in demand. Italy, on the other hand, also has relatively generous FIT rates and is posed to grow substantially in 2011, installing even more PV capacity than it did in 2010.
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