Update: Continuing ASP Decline in the PV Supply Chain

Following up on my previous post last week on this subject, the average selling price (ASP) on the spot market, based on an informal survey of solar energy supply chain participants for the week ending 4/29/2011 shows:

PV Module ASP

The weakness in demand combined with seasonal inventory buildup at the distribution level (severe winter weather in Europe in particular) has continued the price pressure.

Of particular note is the pressure on the solar cell and wafer price. The lowest cell price was $0.94 per Watt, which is an all time low and has many manufacturers idling capacity until the demand situation stabilizes or the polysilicon price declines.

The price of the thin-film as a broad category had stabilized last week but this weeks price illustrates that the pressure by crystalline modules price declines requires further thin-film ASP reduction.

At these ASP’s, many in the manufacturing chain will struggle to remain profitable with the exception of poly silicon providers. Across the industry supply chain, the project developers and EPC companies are gaining enormous leverage and will reap the benefits in revenue expansion as a result of previously marginal projects becoming viable.

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