CdTe costs to drop as low as USD 0.48/W in 2017

Dec 13, 2012 - The production cost of cadmium telluride (CdTe) thin-film modules is to fall to USD 0.48 (EUR 0.37) per watt in 2017 from the current USD 0.67/watt, remaining the cheapest solar technology, a cost and sensitivity study by Lux Research reveals.

The report, Module Cost Structure Update: Path to Profitability, says that solar cell makers would need to cut costs in order to offset lower subsidies and remain profitable. Module prices have already fallen steeply during the last four years to USD 0.70 per watt. However, the cost of goods sold (COGS) for modules has not contracted that much, causing losses for most solar equipment producers.

Apart from CdTe, Lux Research predicts the market value of copper indium gallium (di)selenide (CIGS) thin-film panels to slip by USD 0.14 per watt to USD 0.64/watt. This marks the steepest decline for the sector between now and 2017.

The study concludes that product efficiency would be the most important factor for lower costs in the next few years. Boosting solar module efficiencies is to cut as much as USD 0.09 per watt from the costs for multicrystalline silicon and USD 0.21/watt for CIGS, Lux Research said.

(USD 1.0 = EUR 0.766)

Choose your newsletter by Renewables Now. Join for free!