CHINA SOLAR MODULE PRICE BREAKS $1/W

Chinese Tier-2 PV Module Prices Fall Below $1/W in January, But Price Cuts Slow
16 February 2012 (IMS Research)

"The average price of Chinese Tier-2 crystalline PV modules fell to $0.96 per watt in January 2012, according to the latest PV module pricing report from IMS Research...Annualized price declines (ignoring seasonality) slowed to 22% in January, having exceeded 50% in December, as incentive levels were reduced in a number of major PV markets at the end of 2011.

"Highly competitive pricing from Chinese Tier-2 manufacturers has continued into 2012…and the average crystalline PV module price from these suppliers declined twice as quickly as the total market in January dropping to $0.96/W."

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"Although many spot prices were offered below this in recent months, this is the first time that the global average price had fallen below this industry milestone. Prices as low as $0.80/W (~€0.60/W) were recorded for Chinese Tier-2 module suppliers in January, typically for large orders from German distributors.

"The report also found significant pricing variations throughout the supply chain with distributors seeing an even faster fall in prices…[D]declines actually slowed in comparison to previous months in response to strong demand in Europe…"