Price of Solar Cells Continues to Decrease and Many Firms Clear out Inventory

The price of solar cells continues to decrease and many firms have been trying to clear out inventory. Previously firms typically cut prices 30% to clear out inventory, but due to low demand, discounts will likely to reach 40-50% in 2011, according to industry sources. Weather conditions in Europe have been causing the solar supply chain to be concerned about high levels of inventory. Solar cells with a conversion efficiency less than 16.8% will likely face continuous and significant price drops. Current quotes for solar cells with conversion efficiencies in the range of 16.2-16.4% are around US$1.02-1.10/unit. Solar cells with conversion efficiencies in the range of 15.8-16.0% have been quoted around US$1.00/unit. Despite the severe price drops, demand remains low, said industry sources. The supply chain has been hoping for demand to be stimulated by the upcoming incentive cuts in Germany and possibly the UK. However, the oversupply has been beating down such hopes. The entire market needs to return to balance, added industry sources. Source: www.digitimes.com