Monday, September 7, 2009

Average Retail Price Still Dropping in September...



Here is the latest edition of the Solar Module Retail Price Environment from our good friend at Solarbuzz.

Since this survey started back in mid 2001, there have been only 13 times that the number of price declines has been 100 or greater in a single month. 5 of those have now occurred in 2009 alone including the result this month. The only year to exceed that number was in 2002, when 6 of the 12 monthly results showed 100 or more price declines.

The September result, therefore, maintains the pattern of recent months. The rate of decline was not as great as last month and the overall price activity was also down. Nonetheless, the US index dropped by a further 6 cents per watt, while the European retail index dropped 6 euro cents per watt.

While the overall 125 watt and above index average, based on the purchase of a single module, still shows an overall level above four dollars per watt and four euros per watt, there are much lower retail prices evident within those numbers.

The index includes solar module powers down to 125 watts. As a general rule the higher the module wattage, the lower the price per watt level. Much of the grid tied market is now made up of module powers above 175 watts, a trend which has helped bring down the cost of a solar installation. Indeed the fastest growing power segment for individual models is now above 200 watts.

Out of the 1,437 prices surveyed this month, there were 115 price moves, 102 of which were down. So while the index calculation also takes account of the remainder (1,322) that did not move, it is still noteworthy to look at the price moves themselves.

Where a downward adjustment was made, the average change in dollar terms was 47 cents per watt. The changes range from as small as 1 cent per watt all the way up to $1.95 per watt. Individual price moves at the retail price end of the PV chain vary considerably more than at the factory gate.

Another noteworthy element to the price database is that, as of September, there are now 59 price points below $3 per watt. A small number of these are thin film, but the dominant technology is crystalline silicon.

The bottom line is that the new price levels are more good news for solar consumers as this type of energy supply continues on its pathway toward becoming the distributed electricity source of choice.


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. Prices much higher than this are typically most associated with module powers below 125 watt.

As of September 2009, there are currently 536 solar module prices below $4.75 per watt (€3.32 per watt) or 37.3% of the total survey. This compares with 475 prices below $4.75 per watt in August. The lowest retail price for a multi-crystalline silicon solar module is $2.38 per watt (€1.67 per watt) from a US retailer. The lowest retail price for a monocrystalline silicon module is $2.50 per watt (€1.75 per watt), from an Asian retailer.

Note, however, that "not all models are equal." In other words, brand, technical attributes and certifications do matter.

The lowest thin film module price is at $1.76 per watt (€1.23 per watt) from an Asian-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 130 watt module.

Price Index Context

The module cost represents around 50 - 60% of the total installed cost of a Solar Energy System. Therefore the solar module pric
e 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.

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