Solar panels will be up to 25% cheaper in 2024

O average price of solar panels marketed by China in the international market it has already accumulated a reduction of up to 25% in 2024, according to data from the new bulletin of InfoLink Consulting.

The document, which is published weekly, aims to measure the behavior of global costs of the main inputs in the photovoltaic production chain.

According to the consultancy, the greater reduction until now it is that of photovoltaic modules with technology Hjt: the average price dropped from $0,16/W to $0,12/W between January and the beginning of October.

In turn, the Mono PERC photovoltaic modules had their reduced overall cost a little less than the HJT. The value has been reduced by 20% in the same period: US$ 0,125/W at the beginning of the year to the current US$ 0,10/W. 

Another cost with a reduction above two digits was the TOPCon bifacial solar modules. O cost today is US$0,10/W compared to the US$ 0,125/W that had been recorded in the first week of January. The drop was 19,3%, as illustrated in the graph below: 

What could have caused this reduction? 

In an interview with Canal Solar, Glauco Chang, Country Business Manager of QN Solar, assesses that the drop in prices of solar panels in 2024 occurs because of two main factors. 

O first of them is decrease in the price of raw materials, specifically polysilicon – which, in the last week alone, saw a 2,3% price drop and now costs, on average, US$21,00/kg. 

“This cost reduction benefits the end market, as it reduces generator prices and increases demand, allowing the sector to self-regulate in search of stability. This movement is positive for the expansion of technology and markets,” he said. 

O second factor responsible for the continued fall in prices during the year would be the excess stock of photovoltaic modules.

Chang claims that many manufacturers/assemblers are seeking to reduce these volumes at any cost, which would be resulting in unfair competition within the segment. 

“This mainly affects high-quality companies, which, because they are well managed and produce superior products, do not accumulate inventory, but suffer from price pressure promoted by secondary brands. These companies are forced to follow the price reduction, often selling their products with margins close to zero,” he said. 

The executive also said that, in the understanding of QN-Solar, That situation is considered challenging.

“While we strive to maintain high quality standards in our PV modules, price reduction by stockpiling, compounded by the widely practice by competitors of sacrificing quality in favor of low prices (known locally as “Fake Power”), becomes a significant obstacle,” he said. 

For Chang, this problem is aggravated by the lack of supervision and a deeper knowledge on the subject on the part of end consumers, who often cannot distinguish between superior quality products. “This dynamic not only harms the industry, but the entire chain”, concluded the Country Business Manager of QN Solar. 

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