Costs for solar power components like wafers and cells have fallen by as much as 20% since the start of the year. They likely haven’t bottomed out yet, either, as the outlook for demand remains uncertain and new mega-factories threatens to add supply.
“The coronavirus added uncertainties to demand, especially overseas. Prices are still under certain pressure,” said CMB International Securities Ltd. analyst Robin Xiao. “But if the world is gradually recovering from the epidemic from the fourth quarter, cheaper prices may significantly raise competitiveness of photovoltaics.”
With installations slowing, solar giants LONGi Green Energy Technology Co. and Tongwei Co. have had to cut product prices several times in the past two months to maintain market share. Wafers and cells have become at least 20% cheaper this year while panel prices eased 10%, BNEF data show.
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