Report Projects China Will Raise Prices on Solar Panels

Citing higher costs for solar cells, Global Sources’ China Sourcing Report: Solar Panels states that 67% of China’s solar panel manufacturers plan to raise export prices in 2007.

“Solar cell prices, which have increased by about US$0.30 per watt in the past two years, are expected to rise further, driving the cost of solar panels higher,” said Global Sources general manager of Content Development, Michael Kleist. “With margins at about five percent for many manufacturers, the market is expected to continue to be challenging in the months ahead.” Concerns and challenges expected by surveyed solar panel manufacturers for the next 12 months include higher raw material costs (56%); price competition (20%); design copying/piracy (14%); and power and labor shortages (10%). “One bright spot for China’s exporters is the EU,” said Kleist. “Due to favorable legislation, which includes financial incentives encouraging the use of renewable energy, many manufacturers are targeting exports to this market.” The 101-page China Sourcing Report: Solar Panels provides proprietary market information from in-person factory visits to 17 manufacturers and interviews with 32 more suppliers.

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