From pv magazine Germany
For the fifth month in a row, module prices fell further by around 6% on average. The ongoing decline in prices has led to an overall average reduction of 25% across all module technologies since the start of the year.
Even as raw material costs in China stabilize, high inventories continue to drive down module prices. Manufacturers and wholesalers are grappling with recurring losses in their day-to-day operations. To clear these accumulated stocks, discounts must be offered, and those unwilling to sell below production or purchase prices face the prospect of losing out.
In response, Asian manufacturers are managing the situation by curbing the filling of European warehouses and reducing replenishment. However, the pressure to sell persists as existing inventories depreciate on a weekly basis. Some module customers are attempting to exit current supply contracts or cancel standing orders. However, such actions are not straightforward and come with potential high penalties. Adjusting the purchase price slightly is advised during these negotiations.
The duration of this challenging market scenario remains uncertain. The situation could improve as PV demand potentially picks up in Europe during late summer, coupled with the year-end rally in the Chinese market. Nonetheless, the exact extent of solar panel stockpiles, particularly of PERC technology, in European warehouses and the timeline for clearing this excess remain uncertain. Further price reductions are anticipated in the upcoming weeks and months.
pv magazine print edition
In the latest, “In Conversation” issue of pv magazine we talk to a range of people about their experience with solar, from a sailor and a pair of overland adventurers to a mountain climber and more besides. We also focus on Africa to consider why a continent with such vast solar resource still lags more developed economies when it comes to widespread PV and energy storage rollout.
Overview of the prices differentiated by technology in August 2023, including the changes compared to the previous month (as of Aug. 15, 2023):
— Martin Schachinger studied electrical engineering and has been active in photovoltaics and regenerative energy for almost 30 years. In 2004, he set up pvXchange.com, through which wholesalers, installers and service companies can purchase standard components for new installations, as well as solar modules and inverters.
The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.
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