Pricing in October for C-Si Solar Modules Declines Because of Weak Demand in Germany

Average pricing in October for crystalline silicon (c-Si) solar modules declined in nearly all worldwide regions because of weak demand in Germany, according to IHS.

The average price per watt for c-Si solar modules declined in a range of 1.9-3.5% from September-October in the EU, China, the US, Japan and the rest of the world. The only major country to buck the trend was Canada, where prices rose by 5.5%.

"Demand in Europe for solar modules dropped off in October, primarily due to developments in the solar powerhouse of Germany," said Glenn Gu, senior analyst, photovoltaics, at IHS. "After solar PV system installations surged in September, the Germany solar market decelerated in October. When combined with weakening conditions in other EU countries including Greece and Bulgaria, Germany's slowdown had a major impact on module demand and pricing in the EU and throughout the world."

Pricing varies by region

Canada in October maintained the highest pricing of all regions, at an average of US$0.96/watt. At the other end of the spectrum was China, where pricing averaged US$0.58/watt.

The biggest decline in costs in October occurred in the US, where China-based c-Si modules experienced a 3.5% decline in pricing to US$0.69/watt, down from US$0.71/watt in September.

Much of this price decline was due to plunging costs among tier-three China-based suppliers. Module prices for these suppliers dropped by nearly 5% in October.

Prices to fall more in coming months

Prices are expected to decline during the period from November through January 2013.

China-based c-Si modules sold in Europe are expected to decline by 1.1% in November. Module prices shipped within China will decline by a larger margin. Looking ahead, 2-5% price declines are expected during the next three months in all regions.

Demand rebounds, but pricing does not

Emerging markets are expected to increase their orders for c-Si modules in 2013.

However, most of these countries are demanding cheaper modules in order to increase their return on investment from installations of new systems. Because of this, prices are set to continue to decline at least through early 2013.