Competitive pricing pulls down Chinese Tier-2 module prices

The average cost of Chinese Tier-2 crystalline PV modules dropped to US$0.96 per watt in January.

The figure represents an annualized price decline shift to 22%, after exceeding 50% in December, according to IMS Research’s latest PV module pricing report.

The report cites reduced incentive levels in the major PV markets at the end of last year as having the biggest effect on the prices.

The IMS report noted that competitive pricing from Chinese Tier-2 manufacturers has continued into this year and led to the average crystalline PV module price from these suppliers to fall twice as quickly as the total market in January.

The report acknowledged that while other spot prices had been recently been offered below the US$0.96/W price, this marks the first time that the global average price has dipped below the industry milestone. IMS stated that prices as low as US$0.80/W were recorded for Chinese Tier-2 module suppliers last month; prices which were especially found when connected to large orders from German distributors.