Solar cell prices are likely to slump to as low as US$0.40 per watt, but should start to rebound after reaching the level due to little room for further falls, according to industry sources.
The solar quote in first-quarter 2011 was around US$1.40/W. The current price is around US$0.45/W, an astonishing 67% drop from first-quarter 2011. Industry sources pointed out the market needs to achieve a balance between demand and supply in order for the price to stop falling.
Solar firms have been trying to clear out inventory, which also has been causing the price to move closer to US$0.40/W. In addition, the low price has been driven by firms in desperate need of cash or firms that are likely to exit the market soon, added industry sources.
The price fall has been coupled with demand for products with higher conversion efficiencies. Industry sources noted that by 2012, the threshold of average conversion efficiency will begin at 17%.
Despite the low quotes in the market, some firms have been selective in choosing orders such as refusing requests to quote solar cells below US$0.50/W as quality is still very important.
Some China-based firms have been said to face lack of financial capital due to over-expansion.
Article translated by Jackie Chang
