PV Pricing

In recent years, the global price of PV modules has undergone a rapid and sustained period of decline. In light of scaled back policy in key markets and recent bankruptcy announcements, the questions remain: How exactly is Chinese PV module pricing affecting the European market? And how best should European governments and solar companies react?
The general consensus among many industry observers is that the ongoing decline in global PV module prices is largely driven by a combination of oversupply and growing production overcapacities, coupled with ongoing cost reduction as a result of technological progress and innovation. According to some, there is no question that this trend has emerged as a direct result of the seemingly unstoppable rise of Chinese PV module manufacturers.
What is less clear is the extent to which this rise is fuelled by Chinese government subsidies. European PV manufacturers, developers and installers are watching the case very carefully. Some observers point out that investment into PV capacity has historically been a global phenomenon, with all manufacturers having to follow downward price pressures to maintain market-share.

Written by: Tony Smith