According to the report, average prices of crystalline PV modules purchased from distributors increased by almost 3 percent in June, driven by high demand in Germany, the world’s largest PV market. Demand peaked in Germany in June, as developers rushed to connect systems by 30th June, before the ‘grace-period’ under the previous and more attractive feed-in tariff (FiT) rates expired. Distributors were able to capitalize on strong demand, giving rise to higher pricing in the run up to the deadline.
The resulting slowdown in demand following Germany’s ‘grace-period’ deadline, and the bleak outlook for demand in the second half of the year in Europe, meant that module prices slipped again in July by 2.4 percent, as shown in the results of IMS Research’s monthly survey. Chinese Tier-1 module prices declined by almost 3 percent, whilst the largest decline came from Western suppliers, whose prices declined by over 5 percent.
“PV module prices enjoyed a rare period of stability in June, but are once again under pressure as demand in a number of core markets has weakened in the second half of the year,” commented Sam Wilkinson, senior analyst of IMS Research’s PV Group. “Although the industry has seen a number of significant exits from the market in the recent months, supply of PV modules still far exceeds demand, and suppliers are continuing to engage in fierce price competition.”
Despite module prices consistently declining throughout the last year, IMS Research found the outlook for prices for August to be more positive and, on average, industry buyers and sellers expected prices to increase by 0.3 percent in August. However, expectations varied clearly by company type with module suppliers and integrators forecasting a further small decrease, whilst distributors expect a small increase. “PV module suppliers’ margins are already dangerously low and in some cases negative, and their ability to lower prices any further is severely limited until they can make significant improvements to their cost structures,” concluded Wilkinson.
Americas PV Market Grew 120% in First Half of 2012; USA to Become 3rd Largest Market in 2012
Wellingborough, UK (22nd August 2012) – The Americas photovoltaics (PV) market more than doubled in the first half of 2012 to reach 1.7 Gigawatts (GW) and is set to reach almost 4.3 GW for the full year according to the Q3 PV Demand Report from IMS Research (recently acquired by IHS Inc. (NYSE: IHS)). Installations grew by more than 120 percent in the first half of this year and will help drive the global PV market to grow by at least 3 GW in 2012, according to the research firm.
The latest quarterly report from IMS Research revealed that, for the first time, global installations exceeded 13 GW in the first half of 2012, with the German and Americas markets leading growth. The Americas market was found to have grown by more than 120 percent to reach 1.7 GW in the first half of 2012, compared to just 750 MW in the same period last year. “Despite the lackluster financial performance of the industry’s suppliers, underlying demand was robust in the first six months of this year, with first half installations 35 percent up on 2011”, commented IMS Research PV Research Director Ash Sharma. “The Americas market, led by the USA was unseasonably strong in the first half and did not show any significant slowdown resulting from the anti-dumping duties.”
Aside from China, the report found that the USA would be the largest single contributor to global PV growth in 2012, accounting for 40 percent of new capacity growth. In contrast, the European market is predicted to shrink by almost 3 GW in 2012, despite the strong start to the year in Germany. “IMS Research remains optimistic about the potential for the US PV market, and we predict it will grow to at least 3.5 GW in 2012 and become the world’s third largest PV market. The longer-term outlook for this market is less certain, although the speed at which it is developing so far in 2012 provides some encouragement,” added Sharma.
Global demand is predicted to accelerate in the second half of 2012, despite the slowing of key European markets, Germany and Italy. IMS Research predicts installations will hit a new half-yearly record of almost 18 GW in the second half of 2012, driven by markets such as China and Japan, as well as the Americas. China recently approved 1.7 GW of Golden Sun projects which must be completed by the end of the year, whilst Japan’s new FiT became effective on 1st July and will help spark a surge in demand towards the end of 2012.
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