The solar industry grows more efficient
Solar electricity is coming ever closer to being an economically competitive alternative to conventional energy sources. This dynamic development towards what is known as grid polarity - the time at which solar energy will cost the same as energy from conventional sources - is attributable on the one hand to technological advances in the manufacturing process and on the other to significant efficiency increases in the development and construction of solar plant. This is being confirmed by recently published reports from various solar companies and elsewhere.
Accordingly, the US thin-film manufacturer First Solar revealed during the presentation of its half-year results that the production costs for thin-film modules could be reduced to 76 cents per watt. This represents cost savings of a further six per cent relative to the first quarter. Other module manufacturers such as Yingli, Suntech and Q-Cells were also able to report cost savings in the manufacturing process.
A similar picture emerged from among project developers: in the first half year the companies Phoenix Solar and COLEXON achieved an EBIT margin of more than 7%. This represents a considerable increase on the previous quarter. And other project developers such as S.A.G., Payom Solar, and Juwi have indicated positive developments.
Many experts are also assuming that the system costs for solar plant will fall further in the second half of the year, since a price fall on the procurement market for photovoltaic components is expected. Prices for solar modules could fall back to the level of prices at the end of last year, thus also reinforcing a change in the solar market from a seller's to a buyer's market. Ultimately this development means that grid parity scenarios are fast approaching for the entire solar industry.
Accordingly, the US thin-film manufacturer First Solar revealed during the presentation of its half-year results that the production costs for thin-film modules could be reduced to 76 cents per watt. This represents cost savings of a further six per cent relative to the first quarter. Other module manufacturers such as Yingli, Suntech and Q-Cells were also able to report cost savings in the manufacturing process.
A similar picture emerged from among project developers: in the first half year the companies Phoenix Solar and COLEXON achieved an EBIT margin of more than 7%. This represents a considerable increase on the previous quarter. And other project developers such as S.A.G., Payom Solar, and Juwi have indicated positive developments.
Many experts are also assuming that the system costs for solar plant will fall further in the second half of the year, since a price fall on the procurement market for photovoltaic components is expected. Prices for solar modules could fall back to the level of prices at the end of last year, thus also reinforcing a change in the solar market from a seller's to a buyer's market. Ultimately this development means that grid parity scenarios are fast approaching for the entire solar industry.
