Have we hit the rock bottom of PV Module prices?
Solar panel prices have been falling for years, driven by advances in manufacturing, economies of scale, and fierce global competition. But in 2024, whispers across the industry suggest we may have finally hit rock bottom—or have we? With offers as low as ￡0.08ppw, the margin for further drops seems razor-thin. However, geopolitical shifts, market interventions, and excess inventories may soon turn the tide.
If you’re an installer navigating this complex landscape, now is the time to sharpen your strategy. Here’s an analysis of where we are and what might come next.
The Current Landscape: Prices Below ￡0.08ppw
Solar panels offered at sub-￡0.08ppw seem like a dream for installers and end-users alike. However, prices this low are raising questions about sustainability. A key concern is the impact on manufacturers, with many struggling to break even in the face of relentless price wars.
The reality? These prices won’t last forever.
According to SolarBe Global, Chinese manufacturers—leaders of the global solar supply chain—are taking steps to halt the downward spiral. The Chinese government is introducing minimum price per watt (CNY) requirements to protect manufacturers teetering on the brink of bankruptcy.
This policy may stabilize prices temporarily, but deeper market dynamics, such as inventory gluts and international trade policies, will play a more significant role in shaping the months ahead.
Inventory Overhang: A Key Obstacle to Price Recovery
Excess inventory is currently flooding global markets, delaying any meaningful price stabilization. PV Magazine highlights this growing issue, noting that higher inventories have weakened demand across key markets like Europe and the U.S.
Many manufacturers are holding large volumes of unsold panels, which forces them to cut prices further to clear stock. Until this overhang is resolved, any efforts to artificially inflate prices—such as China’s minimum pricing strategy—may struggle to gain traction.
Tariffs: The Wild Card That Could Push Prices Up
While inventory and pricing policies dominate the short-term outlook, tariffs loom as a potential game-changer in the medium term. Both the USA and EU are considering implementing or increasing tariffs on Chinese solar panels to protect domestic manufacturers and create a more level playing field.
The Trump administration (hinted to return with similar trade policies) has already made clear its intentions to take a hardline stance on Chinese imports, including solar products. Such tariffs would ripple through the supply chain, raising costs for manufacturers and ultimately installers.
For installers relying on imported panels, this could mean higher costs and tighter margins in the months to come, we discussed the merits of this in a previous article here.
What Should Installers Do Now?
The volatility in the solar market underscores the importance of strategic planning and reliable partnerships. Here are three actions you can take to future-proof your business:
Why Callidus Wholesale?
At Callidus Wholesale, we understand the challenges installers face in today’s volatile marketplace. That’s why we go beyond just supplying panels. We’re here to support your business with reliable inventory, competitive pricing, and world-class service.
Our range includes trusted brands like JA Solar and Qcells UK, Ireland and Scandinavia , renowned for their quality and performance. Whether you’re installing residential systems or large-scale commercial projects, we’ve got the products and expertise to help you thrive.
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