Solar panel prices at a crossroad

Solar panel prices are at a crossroad, experiencing their first slight increase in a long time. This is according to Martin Schachinger, CEO of the trading platform pvXchange. In his monthly update, Schachinger begins with "the good news"—the prices of high-efficiency solar panels have remained stable during the first few weeks of the year.

Almost every scenario is possible

"Unfortunately, in November and December of last year, all materials sitting in warehouses or already on ships were sold off at rock-bottom prices to clear inventories and balance the books for the year-end. As a result, much of this material is still in circulation or held in reserve by installers. Consequently, the demand for new goods remains very limited, particularly in a market that is generally slow in the first quarter of each year. It could take a while before these stocked materials are actually installed in projects."

Schachinger warns that, especially in Germany, demand is likely to remain weak in the first half of the year, due to uncertainty across all levels of the solar energy value chain, in anticipation of upcoming government changes. "Not to mention the unpredictable global ramifications of a potential re-election of Donald Trump in the U.S.," he adds. "The trajectory of solar panel prices—whether they rise, stagnate, or fall—will largely depend on both domestic and international demand in the coming months. Nearly every scenario is possible, with no clear certainty."

Premium Panels: A Premium Price

While the price for "mainstream" solar panels stands at 10.5 euro cents per watt peak, fully black panels are priced at 13 euro cents per watt peak.

Schachinger expresses doubts about how long there will be a willingness to pay higher prices for these fully black panels. He also suggests that price levels may continue to level off in the near future.

Source: pvXchange