The price of Solar PV module depends of 3 factors:
- The price of components
- Supply and demand variations (Big installation project and needs)
- External factors (Shipping cost, cost of production, etc…)
A solar PV module is composed of cells (poly or mono), Glass, Frame, EVA, a Back-sheet (TPT), and a junction box.
What has the most influence on the price of a panel is the price of the cell (approx. 60% of the overall module cost) followed by the glass, the frame, the EVA, the TPT and the junction box.
All those components are manufactured from raw materials which you can find the price on the primary stock exchange market such as the anodized aluminum for the frame or silicon for the cells.
Here is the current trend for November-December 2019 in China:
Poly cells: Price is decreasing due to the low demand for the poly PV modules. The Monocrystalline module demand increases a lot and becomes more popular now. The Monocrystalline are now able to resist hot temperatures and can give good results in hot conditions.
Mono cells: Price is also decreasing recently due to the general low demand for solar modules and projects in the main PV market (China, India, Mexico….)
Frame: Frame is made with anodized aluminum, which price increased up to 15% at the end of October, however the price of the frame is relatively stable.
Glass: Price is stable in November, but might increase in December due to the high demand of glass by the end of this year.
2. Supply and demand
Chinese solar PV manufacturers are now producing stocks of panels due to a general lack of demand of module for the end of this year. While the overall demand of PV module is low, this also reduces the lead times to prepare orders (less than 2 weeks).
3. External factors
A new emission standard regulation from IMO (International Maritime Organisation) will start on 1st January 2020, with a likely increase of the shipping costs by up to 20% specialists predict. We already note an increase of 10-15% since June for the freight destined to Latin America and Europe.
PV panels, Polycrystalline and Monocrystalline, are both at their lowest price since the beginning of 2019 and the trend shows that price will increase again between mid-December and mid-January, before the Chinese New Year (24th of January).
Leadtime is short; most of the manufacturers can produce and prepare orders in less than 2 weeks.
The shipping cost is now at a reasonable price but will increase substantially in January due to the new IMO regulation.
Eco Green Energy, French brand PV panel manufacturer since 2008, is fully transparent on the raw material used during fabrication and market prices trend for our distributors and partners. We always take care and advise our clients in their decision to buy PV modules.