It’s a nice day for the solar sector, which is getting a boost from a flurry of analyst comments following the recently completed Intersolar trade show in Munich.

“By the end of Intersolar, we sensed growing, albeit cautious optimism,” Cowen’s Robert Stone writes in a research note this morning. “ASPs are still uncertain, but volumes should definitely be up in Q2/Q3, and deals were starting to close.” He says that despite a strong rebound in the stocks since early March, the group “remains mostly undervalued.”

Likewise, Thomas Weisel Partners analyst Jeff Osborne writes that “it appears demand trends in Europe are accelerating with many companies indicating a 40-100 percent increase in units in Q2 sequentially, led mainly by Germany with some credit easing in Mediterranean countries as well.”

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Cowen analyst Robert Stone this morning cut estimates for the solar sector across the board, asserting that Street estimates for at least the first half of 2009 are too high, and there could be further downside if project credit conditions do not improve.

“Street estimates generally have Q1 revenue flat-to-up sequentially, but we see a downtick as more likely,” he writes. “The main sticking point appears to be project financing rather than the price of modules. Smaller systems are more likely to find cash buyers or owner equity financing along with renewable-specific loans in markets such as Germany and Japan. However, larger projects are likely to be hampered by tight credit and lack of third-party tax equity.”

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Solar industry shares are off to a rousing start this morning on news that the Senate plans to add the stalled “tax extender” legislation, which includes an eight-year extension to the solar investment tax credit to the pending bailout bill for the financial sector.

In a research note this morning, Cowen’s Robert Stone notes that the Senate will add the tax extenders to the bill, which the Senate is expected to vote on later today. Vishal Shah, solar analyst at Barclays, asserts in a note this morning that Senate approval of the bill could be followed by a House vote on the measure as soon as tomorrow.

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