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Price Summary
The
rate of price decline, particularly in the United States
in this survey increased this month compared to October.
For
the survey as a whole and across all regions, the November
survey recorded 75 price declines against just 13 price
rises. This downward ratio of nearly 6:1 compares with a
downward ratio of just 1.5:1 the prior month. These downward
moves were most evident in the US, not Europe.
Price
activity remains high in the market, although not at the
peaks of mid year, when 176 price reductions were recorded
in a single month, namely August 2009.
The
absolute level of this index can cause some debate within
the industry, so periodically it is worth explaining the
methodology and why we do it this way.
Firstly,
the index measures "retail" prices, not "factory"
gate prices. A retail price is the last step in the PV chain
after taking account of downstream margins and therefore
is always much higher than factory prices.
The
most common way prices are displayed on line is the price
for a single module purchase. In reality and particularly
in grid connect applications, modules are rarely purchased
in single units. However, recording data for a single unit
provides Solarbuzz with the best data transparency when
comparing individual model prices and prices of individual
company lines. When residential customers buy, say for a
2 kilowatt system on their home, they are purchasing in
multiple units and will see price discounts as a consequence.
Prices
vary widely online, so it is common for the lowest price
and highest price for the same module to differ by anything
up to 30%. This index utilizes averages and equally weights
all price points. Consumers though will clearly seek out
the lowest prices in the market. That is why it is particularly
important to note lower down on this page, what percentage
of prices fall at the lower end of the range in the survey
result - these lower prices will be where most transactions
occur.
The
industry is rapidly moving to higher wattage modules - most
notably above 200 watts. Generally, the higher the wattage
of the module, the lower the price per watt. The indices
on this page include panels sizes down to 125 watts. Therefore,
this will raise the value of the index, when compared to
say, an analysis which just follows prices above 200 watts.
Finally,
the index that includes all price points, which this one
does, is also subject to online retailers keeping their
prices up to date. Most do, but there are some that do not.
This will cause prices to stay higher in a falling market.
The purpose of retaining the full survey for this particular
index is to minimize the potential of an individual retailer
overly impacting the data and therefore distorting the index
movement.
Lowest
Prices ($/Wp)
Now
that overall price levels have reduced, the
tracking of the lowest price band in the survey is measured
against the number of prices below $4.00 per watt (previously,
this page was tracking prices below $4.75 per watt).
As
of November 2009, there are currently 309 solar module prices
below $4.00 per watt (€2.72 per watt) or 21.4% of the total
survey. This compares with 290 price points below $4.00
per watt (€2.72 per watt) in October.
The
lowest retail price for a multi-crystalline silicon solar
module is $2.48 per watt (€1.69 per watt) from a US retailer.
The lowest retail price for a mono-crystalline silicon module
is also $2.70 per watt (€1.83 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 remains at $1.76 per watt
(€1.20 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.
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 Context
The 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.
LEGAL
DISCLAIMER:
SOLARBUZZ DOES NOT AND CANNOT REPRESENT OR WARRANT THAT
THE DATA IN THIS RETAIL PRICE SURVEY ARE ACCURATE OR
COMPLETE. SOLARBUZZ DISCLAIMS ALL EXPRESS OR IMPLIED
WARRANTIES AS TO THE ACCURACY OR COMPLETENESS OF THE
DATA. THE DATA ON THIS WEB PAGE ARE PROVIDED FOR INFORMATIONAL
PURPOSES ONLY.
YOU RELY ON THE ANALYSIS AT YOUR OWN RISK. SOLARBUZZ
SHALL NOT BE RESPONSIBLE FOR THE CONSEQUENCES OF ANY
DECISIONS RESULTING FROM THE USE OF THE DATA INCLUDING,
BUT NOT LIMITED TO, LOSSES OR DAMAGES RESULTED THEREFROM.
NOTHING IN THE DATA SHALL BE CONSIDERED AS AN ENDORSEMENT,
PROMOTION OR ADVERTISING OF ANY COMPANY.
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