in Europe reported that the price of components in Europe has fallen further due to the accumulation of goods in warehouses, which has reached a record low.
However, the continued decline in component prices has not benefited end customers, which means that demand has not risen. Prices for local solar modules in Europe have fallen again in the
past four weeks. By wholesale standards, the increase is quite large. Standard components are currently trading wholesale at an average of 20 cents/W – that's another 9% below last month's price. The price of more powerful components with the latest battery technology has even dropped by 9.7%. Can now be purchased wholesale at an average of 28 cents/W. The price has reached a record low since 2020. Martin Schachinger, managing director of
PV exchange, says these prices are also now lower than cost of production for many local manufacturers in Europe. He attributed this mainly to the PV overcapacity of Asian manufacturers, which are currently producing a large number of modules for the European market.
In addition, he believes that this is also related to the patent dispute of PERC technology. PERC patent issues have forced many manufacturers to switch to Topcon technology. However, many companies continue to produce PERC for other markets, adding significantly to the overcapacity problem.
Inflation reduces demand
In addition, local demand for PV products in Europe is now declining again.
On the one hand, this is because politicians replaced natural gas with coal instead of renewable energy after the price of natural gas soared as a result of Russia's war of aggression in Ukraine.
On the other hand, inflation has a dampening effect on demand.
Goods are piling up at wholesalers and falling
demand has left installers' orders unfilled again. As a result, they did not receive the scheduled components and inverters on time. "More and more goods are piling up in the intermediate warehouses of wholesalers and manufacturers," Mr. Sachinger said. "At the same time, it is said that 40 to 100 G W of unsold components are already in warehouses in Europe, mainly in the Rotterdam area." It is
also worth noting that record low prices threaten European manufacturing
, but lower prices have not yet fully reached end customers. This is because many handicraft enterprises still have expensive components in their warehouses. This delays the passage of lower prices, which in turn prevents a boost in demand. This is because many end customers are still waiting to get a system at a lower price.
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