Wednesday, July 24, 2013

Solar Module Expects 20% Cheaper Than Last Year

Solar market was going thru a bumpy road for the past few years. Many manufacturers had gone out of business due to negative margins caused by oversupply. After re-balancing of the market, and the Chinese, Japanese and US markets drive strong growth, the remaining manufacturers are in positive territory.

From traditional economic, one would expect price rebound after the market re-balanced and would never be seen the cheap modules again. This phenomenon would only happen if the module price fall was driven only by over-capacity, but what is clear from most manufacturers is that the cost of manufacture of solar modules will also continue to fall, and in some cases quite dramatically.

REC Solar, one of the leading European solar companies produced graph showing solar ability to undercut fossil fuels over the long term, because it shows that the cost of manufacture of a solar module will fall around 20% over the year – despite the 60% to 80% falls achieved over the previous 3 to 4 years. The same story is expected to be repeated among many other manufacturers.

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