Retail price Survey of Solar Module : April 2009
Price Summary
It is now four months in a row that the number of retail price decreases have outpaced increases in this survey. The price reductions evident in the index over the last few months all contribute to making solar generated electricity more competitive to end consumers. Consumers can be individual homeowners, corporations, government, off-grid communities and also utilities.
The rate of price declines, has reduced from that in March. There were three price decreases for every price increase in April. The April survey outcome was very similar to that of February this year.
It is worth noting that out of 1,335 prices captured, 1,232 were unchanged. The drivers of price levels are:
Firstly, price levels are set by the local market conditions of the online retailer, after taking account of supply availability for each solar module model. Albeit, "local" is a broad concept when considering the reach of the web.
Secondly, retail price levels are impacted by the prices that the retailer pays for its modules, usually supplied through wholesalers, but sometimes directly module manufacturers themselves. When a module supplier changes its prices, sometimes across a whole model line, but other times on just a few models in a company range, the retailer has to make the decision whether to adjust its prices based on their own local market conditions and product supply position. Over the long term, there is a strong alignment between these two sets of prices, but over the short term, they can differ considerably. One of the reasons for the increase in number of price movements during the last few months is due to changes in prices from module manufacturers.
Thirdly, the price index on this page includes online retailers only. This particular index includes all retailers reviewed. It should be noted that while many retailers are very market responsive, not all retailers keep their sites up to date. This latter effect tends to dampen the index relative to the true movements in the market, both when prices are rising and declining. In Solarbuzz's consultancy and report activity, the analysis focuses on the leading online retailers and price movements for these companies aligns well with price moves from module suppliers, sourced from separate research.
Since we often receive questions on this price index, it is worth re-emphasising that the price set is based on retail prices for the purchase of a single module. Within the industry, and often discussed by Financial Analysts, the other type of module price talked about is "factory gate" prices. These are the prices at the first point of sale from the module manufacturer. As an approximation, factory gate prices are around 50-70% lower than the prices in this index.
Lowest Prices ($/Wp)
The tracking of the lowest price band in the survey is measured against the number of prices below $4.75 per watt.
As of April 2009, there are currently 283 solar module prices below $4.75 per watt (€3.61 per watt) or 21.2% of the total survey. This compares with 293 prices below $4.75 per watt in March. The lowest retail price for a multicrystalline silicon solar module is $3.41 per watt (€2.59 per watt) from a German retailer. The lowest retail price for a monocrystalline silicon module is $3.35 per watt (€2.55 per watt), also from a German retailer.
The lowest thin film module price is at $2.49 per watt (€1.89 per watt) from a Germany-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 44 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 ContextThe 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
It is now four months in a row that the number of retail price decreases have outpaced increases in this survey. The price reductions evident in the index over the last few months all contribute to making solar generated electricity more competitive to end consumers. Consumers can be individual homeowners, corporations, government, off-grid communities and also utilities.
The rate of price declines, has reduced from that in March. There were three price decreases for every price increase in April. The April survey outcome was very similar to that of February this year.
It is worth noting that out of 1,335 prices captured, 1,232 were unchanged. The drivers of price levels are:Firstly, price levels are set by the local market conditions of the online retailer, after taking account of supply availability for each solar module model. Albeit, "local" is a broad concept when considering the reach of the web.
Secondly, retail price levels are impacted by the prices that the retailer pays for its modules, usually supplied through wholesalers, but sometimes directly module manufacturers themselves. When a module supplier changes its prices, sometimes across a whole model line, but other times on just a few models in a company range, the retailer has to make the decision whether to adjust its prices based on their own local market conditions and product supply position. Over the long term, there is a strong alignment between these two sets of prices, but over the short term, they can differ considerably. One of the reasons for the increase in number of price movements during the last few months is due to changes in prices from module manufacturers.
Thirdly, the price index on this page includes online retailers only. This particular index includes all retailers reviewed. It should be noted that while many retailers are very market responsive, not all retailers keep their sites up to date. This latter effect tends to dampen the index relative to the true movements in the market, both when prices are rising and declining. In Solarbuzz's consultancy and report activity, the analysis focuses on the leading online retailers and price movements for these companies aligns well with price moves from module suppliers, sourced from separate research.
Since we often receive questions on this price index, it is worth re-emphasising that the price set is based on retail prices for the purchase of a single module. Within the industry, and often discussed by Financial Analysts, the other type of module price talked about is "factory gate" prices. These are the prices at the first point of sale from the module manufacturer. As an approximation, factory gate prices are around 50-70% lower than the prices in this index.
Lowest Prices ($/Wp)
The tracking of the lowest price band in the survey is measured against the number of prices below $4.75 per watt.
As of April 2009, there are currently 283 solar module prices below $4.75 per watt (€3.61 per watt) or 21.2% of the total survey. This compares with 293 prices below $4.75 per watt in March. The lowest retail price for a multicrystalline silicon solar module is $3.41 per watt (€2.59 per watt) from a German retailer. The lowest retail price for a monocrystalline silicon module is $3.35 per watt (€2.55 per watt), also from a German retailer.
The lowest thin film module price is at $2.49 per watt (€1.89 per watt) from a Germany-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 44 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 ContextThe 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
Comments
Post a Comment