Tough competition, price pressure and dwindling subsidies—these are the woes facing the German solar technology production sector. While the outlook seems grim, some believe that things will improve.

The golden era of the German solar energy sector is over. At its peak, Germany had a 20-percent share of the global solar energy market, but now the figure stands at just 6 percent. After a rapid decline in recent months, more job cuts are expected to hit the industry.

"It has never been this bad," said German Solar Industry Association head Carsten Körnig at the opening of Intersolar, the world's largest solar energy trade fair, in Munich. And this despite the fact that last year, more photovoltaic systems were installed around the world than ever before.