Chinese Tier-2 Modules Offered Below $1/W
New Hampshire, U.S.A. -- Prices for crystalline-silicon (c-Si) solar photovoltaic (PV) modules fell below the $1/W mark in January 2012, and in some cases well below even that, marking the first time that global average prices have fallen below this milestone, according to IMS Research. With the market now stuck in overcapacity and oversaturation
with solar PV modules -- so much so (some
say tens of gigawatts) that Tier-1 producers and overstocks
can fill demand all by themselves -- Chinese Tier-2
suppliers have desperately kept up their pricing one-upsmanship
to simply keep themselves in the game at the expense of rivals.
As a result, average c-Si PV module prices from this tier of
suppliers has declined at double the pace of the total market --
$0.96/Watt in January 2011, though some spot prices were seen as
low as $0.80/W, typically for large orders from German
distributors, says IMS. (Note that sub-$1/W is largely seen as
significantly below actual manufacturing costs -- First Solar
is an important exception and thus the benchmark -- and is
therefore unsustainable for many if not most manufacturers.) Average c-Si PV module price ($/W) from Chinese Tier-2 suppliers, November 2011 to January 2012. (Source: IMS Research)
Solar Energy,
Solar Tech
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