Hello solar enthusiasts! Let’s talk about the latest developments and price trends in the worldwide solar industry. Understanding this landscape is essential, not just for solar companies, but also for those considering the installation of solar panels for your home. So, hold onto your hats (sun hats recommended, of course), and let’s dive in!
Commencing with a glance at China, the influential module maker in our solar universe. This week, the Chinese Module Marker (CMM) price assessment for TOPCon modules fell to $0.100/W, while Mono PERC module prices dropped to $0.090/W. The slowdown in activity due to lower demand is influencing these new record lows.
In response to this sluggish demand, module makers are slashing prices to secure new orders and remain cash flow positive. Even though the freight rates for solar modules exported to Europe have risen because of Red Sea freight matters, industry insiders see this as a golden opportunity for module sellers to decrease their inventory in Europe.
Talking about Europe, Intersolar’s prices stagnated around $0.10/W FOB China, and notwithstanding the start of high installation season, utility-scale demand isn’t as vigorous as expected.
Shift gears, and we arrive in Latin America, where the price competition is described as “intense”. The Brazilian market, characterized by price-sensitive buyers, has lower prices than other markets. TOPCon prices to Brazil have slumped to $0.08-0.09/W FOB China, with Tier2 and Tier3 module sellers offering prices at the lower end.
Crossing to the USA, current Delivered Duty Paid (DDP) TOPCon prices have escalated to the low-to-mid $0.30/W range. With the 201 bifacial tariffs exemption set to expire, any new deals would be subject to the 14.25% Section 201 tariffs, pushing prices further into the mid $0.30s/W by 2024.
China’s domestic demand continues to be fragile, leading to the speculation of further price declines as module sellers aim to clear inventories. Chinese integrated module sellers were operating at 60-80% rates, and module production capacity for June 2021 is expected to drop to 50 GW, a 5 GW decrease from May.
Despite these challenges, China managed to export 83.3 GW of modules in the first four months of this year, achieving a 20% year-on-year growth and totaling a value of $12.7 billion.
Looking ahead, the FOB China market is likely to remain bearish, preventing any short-term surges in module prices. The forecast for reduced production in July could potentially alleviate some supply pressures.
In conclusion, staying abreast of the global solar industry offers invaluable insights, whether you’re one of the may solar companies maneuvering through this dynamic marketplace, or you’re contemplating investing in a solar array for home use. Stay solar-smart and keep harnessing the power of the sun!
Original Articlehttps://pv-magazine-usa.com/2024/06/28/solar-modules-prices-trend-lower-on-weak-demand-oversupply/
