Photovoltaic module prices decline Solar cell manufacturers are squeezed

According to the latest report from Bloomberg New Energy Finance (BNEF), the price of solar grade polysilicon has risen to the highest level in the past two years, while the price of photovoltaic modules has declined. Solar cell manufacturers are currently faced with two-way pressures of continued low battery prices and rising prices of solar-grade polysilicon and wafers.

From January 1 this year, major European markets have cut back on the on-grid tariffs for solar energy, which has put pressure on the prices of finished photovoltaic modules. Due to the limited supply, the price of silicon has not dropped, but on the contrary it is soaring. Data show that in March 2011, the prices of solar grade polysilicon and wafers continued to rise.

The latest published BNEF solar value chain index shows that the average price of polysilicon in March 2011 reached 79 US dollars / kg, which was the highest since the index was founded in May 2009. Due to import restrictions and limited domestic supply, China's domestic polysilicon prices are higher than in other parts of the world.

Wafer prices also rose. The average price of 6-inch polysilicon wafers in March was US$3.62 per tablet, which was an increase of 3% from February. The average price of polysilicon cells in March was US$1.25/W, which was a decrease of 9.4% from December 2010.

Although the euro, the currency of the world's largest photovoltaic market, has been very strong, the dollar price of solar modules has dropped by 7% since December 2010. The BNEF’s component price index for March showed that the average price of polysilicon components delivered immediately was $1.88 per watt. Although this price has been declining since December 2010, it is still better than the market had expected.

“Global demand for photovoltaic modules remains very strong, mainly driven by expectations of further reductions in subsidies for Italy, Germany, Slovakia and other European PV markets.” BNEF analyst Martin Simonek stated that “despite the upstream supply bottlenecks, developers have brought costs. Pressure, component prices will continue to decline slightly in the first half of 2011."