The Price of Solar Cells Continues to Decrease

The price of solar cells continues to decrease. The current price of solar cells is around US$0.50/watt, but second- and third-tier firms have been reportedly quoting around US$0.45/watt. The inventory backlog problem continues to plague the firms and might push the price close to US$0.40/watt by the end of 2011, according to industry sources. Many solar firms have been eager to clear out inventory as winter is near in Europe. Many firms have been decreasing prices to attract customers causing downward pressure on solar products. The weak market conditions is especially hard for second- and third-tier firms. Due to oversupply, the capacity utilization rates among first-tier solar firms in the Greater China region have been around 70-80%. Second- and third-tier firms have less capacity utilization, usually around 50% and some have halted productions, noted industry sources. Source: www.digitimes.com