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  • PV Market Analysis: Mid-2011 Pause for Reflection -- Just Don't Pause for Long

PV Market Analysis: Mid-2011 Pause for Reflection -- Just Don't Pause for Long

By Paula Mints

In the volatile photovoltaic industry, there is not a lot of time to pause for reflection. 

Mid-year finds average module prices down for all technologies, with reports of some thin films at ~80 US cents/Wp (this is a region-specific price for a-Si), and prices for some c-Si manufacturers at <$1.40/Wp. Sufficient inventory on the demand side is leading to installer-installer sales, further pressuring down prices for technology manufacturers. The price pressure on technology manufacturers is unlikely to ease in the future as lower incentives push prices down, under the assumption that technology prices correctly represent manufacturing costs. Figure 1 (below) presents average prices over time in the PV industry. Though costs have fallen consistently since the beginning of the terrestrial industry, prices have increased during periods of profit taking and decreased to at or below cost during periods of aggressive pricing for share and slow demand.

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Experts

Paula Mints

Ms. Mints is a Director in the Energy practice, and widely recognized as an industry expert on photovoltaic (PV) technologies and markets, with objective, comprehensive analysis based on extensive primary research.

Lisa Frantzis

Lisa Frantzis is a Managing Director for Renewable and Distributed Energy at Navigant. She has 30 years of experience in managing extensive technical, market, and economic analyses of renewable energy systems. Her clients include policy makers, equipment manufacturers, oil companies, developers, utility companies, environmental groups, investors, and government agencies.

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