For this location, the model derives a minimum sustainable price (MSP) of 0.308 USD/Wp. The cost of local production is 0.296 USD/Wp. Most of the cost is related to input materials, where the solar cell and aluminum frame have the highest share, followed by glass.
In a new weekly update for pv magazine, OPIS, a Dow Jones company, provides a quick look at the main price trends in the global PV industry. Solar cell FOB China prices have stayed unchanged, with not much real trading taking place as price negotiations for orders delivered in March are still ongoing.
to 0.35 USD/Wp in 2020, predictions are that module prices can be expected to halve again before 2030. For the PV industry, the major suppliers of PV modules are located in Southeast Asia, so other countries import the majority of their PV modules rather than manufacturing them locally.
Thirty-six GW represents 20%–30% of the total cell production capacity. 9 In Australia, Tindo Solar sources cells and all input materials from the supply chain, 10 and in the United States, Jinko, Auxin Solar, Solaria, and Mission Solar produce modules from local and imported materials. 11
With increasingly competitive pricing and net-zero targets driving the growing demand for solar photovoltaics, new manufacturing supply-chain models are under consideration to increase local resilience and to ensure continuity of supply.
The comparison of imported and manufactured PV modules for the 600 MW local factory shows that, when including trade and logistics costs, the imported PV module price is 0.274 USD/Wp (see Figure S8). At least a 12% reduction in cost is required for the optimized local manufacturing cost to compete with imported modules.
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