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Outlook is negative for PV supply chain in 2017 - analyst

Solar farm. Author: Michele Lamberti. License: Creative Commons, Attribution 2.0 Generic.

December 15 (SeeNews) - Profitability in all segments of the photovoltaic (PV) industry supply chain will be under significant pressure in 2017 with the slowdown in solar demand, says a Taiwanese market analyst.

By the end of 2017 the global average selling price of PV modules is seen to fall to USD 0.33 (EUR 0.31) per watt from USD 0.38/W at the start of the year, according to TrendForce’s EnergyTrend division.

The outlook for the sector is generally negative for next year, EnergyTrend says, as demand growth is expected to be flat and as oversupply is seen to exacerbate in the second half, leading to increased pricing pressure.

Solar capacity deployment in the US will be a bit slower in 2017, Chinese demand will be hurt by the reduced national targets, and Japanese installations will be impacted by feed-in tariff (FiT) cuts. EnergyTrend points out that demand growth in India could not compensate for declines in such major markets.

“Prices of PV modules are expected to fall by over 10% during the year on average, while prices of polysilicon, silicon wafers and PV cells may also sink to new lows,” the market research company says. First-tier module makers would have to sacrifice gross margins in order to maintain their market shares.

(USD 1 = EUR 0.95)

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for seven years now. She's got a soft spot for emerging markets.

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