In what can only be described as bad news for makers of solar panels, new figures from Bloomberg New Energy Finance show the cost of solar-grade polysilicon and wafers has risen to a two-year high, while prices of finished solar energy systems face increased downward pressure.
According to the latest Bloomberg New Energy Finance Solar Value Chain Index, polysilicon – the essential component in photovoltaic (PV) cells – prices climbed in March to US$79/kg, coinciding with cuts to renewable energy subsidies in the form of feed-in tariffs across major European markets. These government cutbacks have forced down prices of market-ready solar PV panels and increased demand by 7% since December 2010.
The March results of the Bloomberg Solar Chain Index, published last week, put the average global cost of crystalline solar panels at above market expectations.
“The global demand for PV modules continues to be very strong, mainly driven by anticipation of further tariff cuts in Italy, Germany, Slovakia and the rest of the European PV markets,” said Martin Simonek, analyst with Bloomberg New Energy Finance.
As the largest producer of solar technology in the world, Chinese solar panel manufacturers are set to be the hardest hit rising silicon costs, with the nation relying heavily on limited imports of the material.
The price of multicrystalline silicon solar wafers also rose, adding more pressure to solar manufacturers, increasing 3% in February to US$3.62 per six-inch wafer.
Data for Bloomberg New Energy Finance’s Solar Value Chain Index and Module Price Index are collected between second and eighth day of each month through a questionnaire sent out to over 120 companies that buy, sell or trade polysilicon, wafers, solar cells and panels.
