Green Energy
The good news and the bad news
Positive momentum
The upward price pressure is expected to continue, although the rate of increase is slowing in April compared to March as the rising price starts to dampen demand.
However, looking further ahead into May and June, Chinese module prices in the EU are expected to climb rapidly, driving up overall average module prices globally.
With many Chinese module suppliers cutting back shipments or withdrawing from the market ahead of the preliminary EU solar anti-dumping decision to be announced in early June, the module shortage in Europe is expected to intensify. Average Chinese module prices by the end of May are expected to rise from 5 to 6 percent compared to March, reaching $0.691/Wp or EUR 0.53/Wp.
Tiers of joy
All told, pricing is on the increase from Chinese suppliers of all tiers.
For instance, prices of Tier 1 Chinese suppliers grew by 2.3 percent during the month of March 2013, while the average prices of second- and third-tier Chinese suppliers went up by 2.8 percent and 1.4 percent, respectively, during the same period.
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Green Energy
European Solar Module Prices Rise for the First Time in Four Years
Article published on www.worldofphotovoltaics.com on April 24th, 2013.
Reflecting a major shift in the global solar market after four years of severe erosion, prices for photovoltaic (PV) modules in the key European market are rising due to number of factors.
EL SEGUNDO, Calif. (April 23, 2013)—Reflecting a major shift in the global solar market after four years of severe erosion, prices for photovoltaic (PV) modules in the key European market are rising due to number of factors—including the newly restored balance between supply and demand.
The average selling price (ASP) for Chinese crystalline silicon (c-Si) PV modules shipped to the European Union increased by 4 percent in March, the first monthly rise since January 2009, according to the IHS iSuppli PV Module Price Tracker from information and analytics provider IHS (NYSE: IHS). Prices are set to rise by another 1 percent in April and by an average of 4 percent during the next three months, as presented in the attached figure.
“For years, solar module manufacturers have contended with profit-killing market conditions characterized by oversupply and rapidly falling prices,” said Glenn Gu, senior analyst at IHS. “Now, with clear signs that the balance between supply and demand is correcting, prices have stopped their decline and have begun to rise. This is mostly good news, because sales are increasing from Asia, causing worldwide demand to catch up with supply. On the other hand, prices also are rising because of antidumping legislation in the European Union, which is negatively impacting sales for Chinese suppliers.”
Europe is the world’s largest solar market, accounting for 57 percent of global installations in 2012.
The good news and the bad news
The rise in worldwide demand is arising from booming sales in China and Japan. Both countries at present are soaking up massive volumes of modules, helping boost worldwide pricing.
Japan commands a particularly high module ASP, which is pulling up pricing in Europe and worldwide.
Meanwhile in China, the government is expected to reduce its feed-in tariff (FIT), which serves to incentivize solar installations and drive the sales of modules. The Chinese incentive is spurring faster adoption of solar systems while the FIT terms are still attractive.
However, as part of its antidumping action, the EU in early March commenced compulsory registration for imported Chinese solar products. This made many Chinese suppliers unwilling to ship or clear modules through customs to the region. In turn, the development triggered a significant solar module shortage in major European markets such as Germany and the United Kingdom.
Along with increasing administrative costs, the phenomenon has driven up prices in Europe.
Positive momentum
The upward price pressure is expected to continue, although the rate of increase is slowing in April compared to March as the rising price starts to dampen demand.
However, looking further ahead into May and June, Chinese module prices in the EU are expected to climb rapidly, driving up overall average module prices globally.
With many Chinese module suppliers cutting back shipments or withdrawing from the market ahead of the preliminary EU solar anti-dumping decision to be announced in early June, the module shortage in Europe is expected to intensify. Average Chinese module prices by the end of May are expected to rise from 5 to 6 percent compared to March, reaching $0.691/Wp or EUR 0.53/Wp.
Tiers of joy
All told, pricing is on the increase from Chinese suppliers of all tiers.
For instance, prices of Tier 1 Chinese suppliers grew by 2.3 percent during the month of March 2013, while the average prices of second- and third-tier Chinese suppliers went up by 2.8 percent and 1.4 percent, respectively, during the same period.
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- Suntech Bankrupt
Suntech Power Holdings, the China-based maker of solar panels, declared bankruptcy on Wednesday, the state news agency Xinhua said.On Monday of this week, according to Reuters, Suntech said that it had defaulted on US$541 million of its...
- Japan Set To Become World's Largest Solar Market
Article published on www.solarnovus.com on May, 30th 2013 Japan’s solar installations surged by a stunning 270% (in gigawatts (GW)) in the first quarter of 2013, positioning the country to surpass Germany to become the world’s largest photovoltaics...
- Who Is Benefiting From Anti-dumping In Europe ?
Article published on http://news.pv-insider.com/photovoltaics/who-benefiting-anti-dumping-europeBy Jason Deign on May 14, 2013 We look at the European Union tariffs now imposed on imported Chinese panels and how some PV makers are...
- Surviving The Downturn Until 2015
Article published on www.pv-magazine.com on April, 23rd 2013. NPD Solarbuzz's latest report shows that a module market downturn and further consolidation are to be expected until 2014. Recovery is forecasted to begin in 2015. Surviving the downturn...
- How Short-term Shipment Delays Could Impact Us Solar Market
Article pubished in http://www.renewableenergyworld.com New Hampshire, USA — Two weeks after a trade ruling deepened the rift in an increasingly divided industry, analysts and CEOs alike are still working to assess how the newly imposed trade tariffs...