Current situation of solar modules

According to solar energy research institution Solarbuzz, under the global oversupply of solar modules situation, the shipments for solar modules continued to grow, but the sales revenue for solar module is still decreasing. By the first quarter of 2012, the modulus of the module revenue of crystalline silicon vendors had consecutively declined for five quarters, the average sales prices may continue to decline in 2012, the solar module manufacturer need to increase the shipments in order to change this trend. In fact, the ratio of revenue and shipments (per watt volume of income) continued to decline since reached the pinnacle of more than four in the second quarter of 2008, the revenue growth of crystalline silicon module manufacturers face challenges.
Reasons for declines of solar module price
However, although the manufacturers of crystalline silicon modules have different circumstances, but for the leader, the quarterly revenue is also likely to grow previously although average price for the 500w solar system declines, which is mainly because the growth rate of the end-market demand is significantly faster than the decline rate of average price, as well as the market share increases due to the competitors exiting the industry.
Key Factor for solar module growing revenues
Solarbuzz said that the stable growing revenues and positive operating margin is the key factor to stimulate the production and investment surge of new solar manufacturers in 2010 and 2011, which is also an oversupply. The oversupply and subsequent sales competition led to the fall of an average price and profit. In early 2011, total shipments growth in the 1st quarter did not lead to revenue growth.
Main tasks of the solar module manufacturers
But with some 2 or 3 line manufacturers facing a double blow of the pressure of declined shipments and average prices, the exit of the enterprises that lack of competitiveness will leave a bigger market for industry leaders. In addition, taking into consideration that the average price may also be dropped in the next few years, cutting off off grid solar power system costs as soon as possible is a positive way to ensure that the gross margin. Solarbuzz pointed out that, in fact, cost control is the main tasks of the solar module manufacturers as well as the entire solar value chain.
The downward trend of PV module prices will weaken
According to the latest photovoltaic cell module production market tracking reports for IHS iSuppli, it is expected that the downward trend of PV module prices will weaken in the second half of 2012 due to the increasing demand. It is good news for the solar energy industry which has suffered blows. The average market price of crystalline solar modules is expected to decrease by 11% in the second half year, which is slightly less than 12 percent in the first half and far less than 20% in the second half of 2011. It is expected that the average market price for the fourth quarter in 2012 will drop from the second quarter of 0.64 euros per watt to 0.57 euros per watt. The solar modules are usually denominated in euro, while the silicon is denominated by dollar.
For more information about solar modules, please feel free to visit: www.solarmodulesystem.com
This article is come from: http://cell.battery-products.com/solar-module-manufacturer/solar-module-shipments-growth-cant-catch-up-with-the-asp-decline.htm