Price decreases because of:
• Overcapacity: fall in demand China and US
• Decline price undertaking (MIP)
Duration: 2 to 3 quarters?
The prices of solar panels decline globally, due to the steep drop in Chinese demand in Q3 after a FIT cut, combined with the moderate US demand on projects being delayed into 2017. All global markets are currently seeing an acceleration in these price decreases.
Price undertaking (MIP) in decline
The price decline on the European market is also caused by the fact that more Chinese Tier 1 manufacturers have increased production from their ‘tariff free’ factories outside China. The increasingly smaller impact of the minimum import price (MIP), has thus resulted in an additional price cut.
How low can solar panel prices go?
Duration of oversupply and panel price pressure remains unclear. Several companies have indicated that oversupply may last for 6 to 9 months. Although this is depending on several factors: increasing demand, evolution capacity, potential consolidation of tier 2 and 3 players, further cost reductions, etc.