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Price of Chinese solar modules continues to plummet
By: Teun Schröder
The price of Chinese solar modules has plummeted in recent weeks. And for the time being, the low point does not seem to be in sight. Reasons for this are overfull stocks in Europe and low raw material prices.

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While the price of a Chinese solar module was still around 23 cents per watt peak in February, it has fallen below 17 cents in recent weeks. Since the beginning of this month, the price has fallen by more than 11 percent on a weekly basis. This is evident from the Chinese Module Marker (CMM), a trend analysis by the American market research agency OPIS.

Full stocks
One of the causes mentioned by OPIS is the overflowing stock of solar modules in Europe. In 2022, a record 46.1 gigawatts of solar power was installed in Europe, while China shipped some 85 gigawatts to the continent. OPIS expects that the surplus of panels in Chinese department stores will be spread across Europe.

It is not yet possible to say when the price drop will have reached its lowest point. OPIS foresees major financial losses if department stores do not quickly get rid of their stocks.
Raw material costs fall
At the same time, the price of polysilicon, the basic material used for the production of solar panels, is also plummeting. Once again, large stocks of this raw material in China seem to be the cause.

At the moment, the prices of solar modules are almost approaching the production costs, according to the Chinese research agency Infolink. As a result, some manufacturers are forced to reduce production capacity and orders for the month of July are postponed. Customers of solar modules, in turn, are adopting a wait-and-see attitude, because the price may drop even further in the coming period.
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