On January 11th, 2012 IMS Research (Wellingborough, U.K.) issued an analysis of solar photovoltaic (PV) supply chain prices in the U.K., stating that prices appear to be fluctuating with the "chaos" of the nation's feed-in tariff (FIT) situation.

The company notes that average U.K. prices for PV modules declined by 6% in December 2011 over November levels. On December 12th, 2011 the U.K. implemented PV FIT cuts of roughly 50% for smaller systems, however the timing of the cuts has since been ruled illegal by the U.K. High Court.

"Although December’s FIT cut forced some to pay inflated prices to secure modules via distributors before the FIT deadline, average prices for modules purchased direct from manufacturers declined by 6% over November’s level," stated IMS Research Senior PV Market Analyst Sam Wilkinson in a blog entry on the IMS Research site.

"The decline came as prices were adjusted to reflect the planned new incentive levels, and distributors and wholesalers cleared stock levels in anticipation of demand evaporating after the FIT cut."


Prices not yet re-adjusted

IMS Research also notes that prices have not yet had time to re-adjust to the ruling that the U.K. must now return to its generous FIT levels, with much confusion in the industry and demand further impacted by the Christmas break.


Impacts on module prices vary

IMS Research states that the spike in demand caused by the impending cuts gave global module suppliers a chance to shift excess inventories to the U.K., often at low prices. However, impacts have been different for different module types.

Chinese tier 2 crystalline silicon (c-Si) manufacturers dropped their prices an average of 13% to GBP 0.66/watt (USD 1.01/watt) during December 2011. However, the biggest declines came from highly priced Japanese c-Si manufacturers, which fell from an average of 19% to GBP 1.12/watt (USD 1.72/watt).

Distributor pricing added another 25%, with the average distributor PV module price at GBP 1.07/watt (USD 1.64/watt), compared to an average price of GBP 0.81/watt (USD 1.24/watt) from manufacturers in December 2011.

IMS Research also notes a wide range of pricing in the period preceding the cuts, with some distributors charging extremely high prices.
 

2012-01-12| Courtesy: IMS Research | solarserver.com © Heindl Server GmbH

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