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Price Summary
This
month the declines in retail prices resulted in a reduction
of both the US and European price indices.
However,
this month's picture is a little more complex that just
the headline outcomes. The direction of prices does depend
on the manufacturing company product line. In other words,
not all companies are exhibiting declines in retail prices.
Retail
prices are the last step in the long PV business chain.
The indicies on this page give equal weighting to all retail
price points in the survey. This is important because consumers
will inevitably gravitate to the lowest price quotes.
For
the survey as a whole, it includes module powers as low
as 5 watts (the index on the right just includes powers
1125 watts and above), 38.7% of the survey prices are now
below $4 per watt. The price index is based on the price
of a single module. However, retail price discounts are
usually available for modules purchased in quantity.
In
contrast to retail prices, "factory gate" prices
are significantly lower. The Solarbuzz research methodology
for obtaining factory gate prices is completely different
to this online survey and must be obtained directly from
manufacturers, distributors and larger project developers/installers.
A
factory gate price is the price that the module manufacturer
sells for on an arms length transaction basis. Just like
retail prices, factory gate prices vary by quantity purchased,
power of module, efficiency of module, strength of the brand
and location of purchaser. Mid-efficiency fatory gate crystalline
module prices are around $2 per watt at the present time.
One
key benefit of the retail price approach is it allows comparison
between different module models to be undertaken on an impartial
basis with a large number of consistent price points.
The
continuing decline in module prices (for most, but not all
modules) represents more good news for the solar consumer.
These declines are paying off in terms of demand growth,
which will be spectacular in 2010. Contrast these price
declines with the increases emanating from some of solar's
competing energy sources. Also, pay close attention to the
intensity of industry efforts to bring down costs even further.
This
demand growth has one other hugely valuable effect. It allows
economies of scale to be accessed through the photovoltaic
(PV) manufacturing and market chain. These economies of
scale are already available to hydrocarbon based energy
sources.
While
there may be short periods of interruption, there is only
one consistent long term trend - namely, declining PV costs
and prices. That trend will assure a continuation of the
direction of the long term demand path for this industry.
Lowest
Prices ($/Wp)
As
of August 2010, there are now 532 solar module prices below
$4.00 per watt (€3.04 per watt) or
38.7% of the total survey. This compares with 518 price
points below $4.00 per watt (€3.20 per watt) in July.
The
lowest retail price for a multicrystalline silicon solar
module is $1.74 per watt (€1.32 per watt) from a US retailer.
The lowest retail price for a monocrystalline silicon module
is also $2.16 per watt (€1.64 per watt), from a German retailer.
Note,
however, that "not all models are equal." In other
words, brand, technical attributes and certifications do
matter.
The
lowest thin film module price is at $1.07 per watt (€0.81
per watt) from a United States-based retailer. As a general
rule, it is typical to expect thin film modules to be at
a price discount to crystalline silicon (for like module
powers). This thin film price is represented by a 55 watt
module.
Note, once again, that these prices are based upon the purchase
of a single solar module and prices are exclusive of sales
taxes. Information on volume discounts, factory gate and
PV system pricing is available as part of our consultancy
services.
Price Index Context
The module cost represents around 50 - 60% of the total
installed cost of a Solar Energy System. Therefore the solar
module price
is the key element in the total price of an installed solar
system. All prices are exclusive of sales taxes,
which depending on the country or region can add 8-20% to
the prices, with generally highest sales tax rates in Europe.
LEGAL
DISCLAIMER:
SOLARBUZZ DOES NOT AND CANNOT REPRESENT OR WARRANT THAT
THE DATA IN THIS RETAIL PRICE SURVEY ARE ACCURATE OR
COMPLETE. SOLARBUZZ DISCLAIMS ALL EXPRESS OR IMPLIED
WARRANTIES AS TO THE ACCURACY OR COMPLETENESS OF THE
DATA. THE DATA ON THIS WEB PAGE ARE PROVIDED FOR INFORMATIONAL
PURPOSES ONLY.
YOU RELY ON THE ANALYSIS AT YOUR OWN RISK. SOLARBUZZ
SHALL NOT BE RESPONSIBLE FOR THE CONSEQUENCES OF ANY
DECISIONS RESULTING FROM THE USE OF THE DATA INCLUDING,
BUT NOT LIMITED TO, LOSSES OR DAMAGES RESULTED THEREFROM.
NOTHING IN THE DATA SHALL BE CONSIDERED AS AN ENDORSEMENT,
PROMOTION OR ADVERTISING OF ANY COMPANY.
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