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Lux Research, Inc.
Solar Modules Production Costs Fall as Low as $0.48/W in 2017
CIGS modules fall the most, nearly matching crystalline silicon, but CdTe remains the low-cost leader, as manufacturers push to profitability, says Lux Research
BOSTON, MA – December 12, 2012 – The solar industry is reeling from overcapacity and supply outstrips demand by two to one. It needs to drive costs lower in order to overcome diminished subsidies and regain profitability – and the cost reductions it needs are at hand, according to Lux Research.
Module prices have fallen precipitously over the past four years to a low of $0.70/W but the cost of goods sold (COGS) for modules has not reached this level, resulting in massive losses for most module manufacturers.
“With pressure from competitors, customers, and policy-makers to drop prices even further, manufacturers need to drive costs down to survive and thrive during the coming years of growth in the demand market,” said Ed Cahill, Lux Research Associate and the lead author of the report titled, “Module Cost Structure Update: Path to Profitability.”
Lux Research conducted a cost and sensitivity analysis, examining the impacts of drivers like low-cost manufacturing locations, high efficiency, increased capacity utilization, and higher production yields on module COGS. Among their findings:
The report, titled “Module Cost Structure Update: Path to Profitability,” is part of the Lux Research Solar Components Intelligence service.
About Lux Research
Lux Research provides strategic advice and on-going intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.