ASP Update – Hitting Bottom?

The weekly update shows average sales price on the spot market still declining in all categories with the exception of inverters.

PV Module ASP

With inventory likely backing up at manufacturers, distributors, integrators and installers, many PV manufacturing companies have announced idling of production capacity. An example is REC’s recent announcement here.

It’s likely that the price bottom is near. With the corresponding drop at the installed cost level, many projects on hold that had borderline financing attributes in Germany, Italy and the U.S. will now go ahead as retail grid parity will become the norm in high utility cost regions. In addition, the race is on in Germany, again, before the next ratchet down in subsidy program. Q4 and Q1 2012 may see a return to manufacturing capacity utilization growth and normal 3 month inventory work through.

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