The impact of solar module prices on demand

Will solar module prices rise if demand increases in China?

S&P Global’s analysis suggests that due to the size of China’s solar market, a domestic increase in module prices could also lead to a global rise. “Solar module prices are most likely to get the chance to rebound once demand increases,” explained Jessica Jin, principal research analyst of Clean Energy Technology at Commodity Insights.

Why do solar modules cost so much?

However, as the primary cost component of photovoltaic modules, the price of solar cells plays a decisive role in module pricing. Due to the oversupply of polysilicon in earlier periods, prices have been under sustained pressure since 2023, even falling below cost levels in the first half of 2024.

Will price fluctuations affect the photovoltaic module market?

As the global energy transition accelerates, the photovoltaic (PV) industry, as a key component of renewable energy, continues to attract significant attention for its promising development prospects. However, price fluctuations in the photovoltaic module market remain a critical factor influencing the industry’s growth.

Could a new power pricing mechanism strengthen short-term solar module demand?

A new power pricing mechanism in China could strengthen short-term solar module demand both domestically and internationally, according to analysis by S&P Global.