February 24, 2016 Posted by: Wouter Vermeersch
2016 Forecast Part 3: PV Prices
• Cells: no further price reduction
• Modules: room for price reduction
• EU: MIP and dollar decisive
Globally, material and production costs of cells have been falling for many years and there is very little room for further reduction. Instead, cell manufacturers are now looking to reduce the overall production cost by raising efficiency (thus reducing the cost per watt).
Policies in major markets will cause a gradual decline in module prices. Installation peak seasons for the UK, Japan and India have just passed, so module demand and prices in general are expected to weaken.
In Europe, two major variables will further affect prices during 2016: the existing minimum import price (MIP) for Chinese cells and modules and the euro-dollar exchange rate for non-Chinese cells and modules.