The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Solar PV cost per watt below $1 by Q1 2012

Crystalline silicon (c-Si) solar photovoltaic (PV) modules will costs less than $1 per watt by Q1 2012, projects IHS iSuppli research. The sought-after milestone could boost installations globally, but will the vertical integration solar company model survive it? 

Henning Wicht, PhD, IHS iSuppli

June 17, 2011
-- Crystalline silicon (c-Si) solar photovoltaic (PV) modules will costs less than $1 per watt by Q1 2012, projects IHS iSuppli research. $1/W is the most broadly pursued goal of solar photovoltaics promoters. IHS iSuppli believes the benchmark could give a boost to PV installations globally and forestall a market downswing.

An accelerated, rapid decline in pricing came about after Intersolar Europe this month in Germany. Going into Intersolar, spot prices from the top Chinese brands, among the major players in the market, had been running at $1.49 per watt for mainstream c-Si modules. By the time Intersolar closed, prices had fallen to $1.30 per watt. IHS iSuppli states that this could have happened because of the predicted flat or negative growth forecast for 2012. Top-tier module brands lowered prices to gain market share in the face of slowed growth or a market decline, explained Henning Wicht, senior director and principal analyst, photovoltaics, at IHS. Solar wafers have experienced price declines in 2011 as well: wafers were quoted in the $2.30 per-piece range in June, down from $3.50 in March.

Figure. IHS iSuppli outlook for the cost of silicon + non-silicon content, gross margins and prices from top-tier module players, covering the second quarter for each year from 2011 to 2014.


While gross margins are projected to range between 10 and 12% this quarter, intense competition will slash margins to 5-9% by Q2 2012, IHS iSuppli research indicates. This margin pressure calls into question the vertically integrated business model popular in the PV industry. Can a vertical operation invest in wafers, cells and modules on the one hand, finance downstream projects on the other, and also continue to run world-class operations at each level?
 
Certain installations could drop to $2/W, said Mike Sheppard, analyst for photovoltaics and financial services at IHS, which he predicts would be ?an important driver for stimulating demand,? preventing a solar installations dip in 2012.

Though many vertical operations will continue to thrive, the space likely will find increased competition from another breed of player?the so-called specialists that will be able to aggressively invest in just one area, and more important, hold their own against their vertically integrated rivals.

Learn more on IHS iSuppli Photovoltaics Research here.

Subscribe to Photovoltaics World

Follow Photovoltaics World on Twitter.com via editors Pete Singer, twitter.com/PetesTweetsPW and Debra Vogler, twitter.com/dvogler_PV_semi.

Or join our Facebook group

Untitled Document

RELATED ARTICLES

Sunrise in Pakistan as the Country Delves into Solar PV

Robert Harker Pakistan has joined the list of countries that are exploring solar power as a means to bridge critical energy generat...

Global Renewable Energy Roundup: China, Kenya, Turkey, India Seeking More Renewables

Bloomberg News Editors China is being encouraged by three industry groups to double the nation’s solar-power goal for 2020 to make up for sh...

Why Smarter Grids Demand Smarter Communications Networks

Mark Madden

Historically, utility networks and communications networks have had little in common.

The Importance of “Switching Costs” to the US Residential Solar Industry

Paula Mints The DoE and numerous organizations and governments globally are focused on driving down the cost of solar convinced t...

PRESS RELEASES

Free ImagineSolar Online Course Demonstration

ImagineSolar will be holding another live demonstration of PV250e: Solar PV Economics a...

Canadian Solar Announces Partnership in 200 MW Tranquility Solar Power Project

Recurrent Energy signed an agreement with Southern Power to partner on the Tranquility ...

AWS Truepower Announces Major Expansion of its Due Diligence Team in Response to Growing Market Demand

AWS Truepower, an international leader in wind and solar energy consulting and engineer...

FEATURED BLOGS

NATiVE Recognized for Excellence at 2015 Greater Austin Business Awards

NATiVE Recognized for Excellence at 2015 Greater Austin Business Awards NEWS RELEASE AUSTIN, Texas – Aug. 27...

Solar Energy Means Jobs, Savings, and a Low-Cost Future [infographic]

There are a lot of utility-sponsored legislative and regulatory attacks on solar energy lately, and we put together t...

How To Get People To Do Stuff

It’s no secret that psychology and sales go hand in hand. If you understand the principles of human psychology ...

FINANCIAL NEWS

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @jennrunyon

FEATURED PARTNERS



EVENTS

Intersolar North America 2016

Exhibition: July 12 - 14, 2016; Conference: July 11 - 13, 2016 Intersola...

Intersolar South America 2015

Exhibition and Conference: September 1-3, 2015 Intersolar South America ...

Intersolar Europe 2016

Exhibition: June 22-24, 2016; Conference: June 21-22, 2016 Intersolar Eu...

COMPANY BLOGS

Less Is More

When you’re giving a presentation, one of the easiest things to do...

Captivology

One of the biggest challenges we face as efficiency sales professionals ...

How To Optimize Your Meeting Schedule

Do you spend more time in meetings than you do actually working? While m...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS