Falling Trends in PV Module Prices: Understanding the Market Dynamics

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“The OPIS benchmark assessment for modules from China, the Chinese Module Marker (CMM), fell for a third consecutive week, notching downward to $0.196 per Watt peak (wp). This week, upstream prices in China weakened even more dramatically than previously and overseas demand for modules remains muted, two factors that industry players must contend with as they take the module market’s pulse at Intersolar Europe.”

The solar energy industry has been witnessing significant fluctuations in photovoltaic (PV) module prices, with the latest data from OPIS revealing a downward trend from 16th May 2023 to 13th June 2023. In this article, we delve into the factors contributing to this price fall and its impact on the global solar market.

China’s Dominance and India’s Emergence

China has been a dominant player in the solar module manufacturing space, supplying modules at competitive prices across the globe. However, India is emerging as another manufacturing hub for solar modules, aiming to reach a capacity of 50 GW per year, with approximately 20 GW catering to the domestic market. By 2025, India aims to achieve a capacity of 95 GW, driven by the triggers in price fall to compete with China’s low-cost manufacturing capacity.

India-China Trade Issues and Future PV Market

While the price fall has been a boon for India’s domestic market, it has also led to trade issues with China. India imposed import duties on Chinese modules, creating tension between the two countries. Despite the challenges in competing with Chinese manufacturers on the overseas export market, India is focusing on creating significant domestic market volumes.

Boosting the C&I Market

The availability of low-cost solar modules is expected to boost the commercial and industrial (C&I) solar market. To further encourage growth in this sector, the government needs to implement favorable policies, such as offering low-cost finance options and easing net metering regulations for C&I consumers.

Polysilicon Oversupply Concerns

Polysilicon oversupply in China has been a major concern in the solar industry. China’s tier-1 manufacturers are sitting on substantial polysilicon stockpiles, potentially impacting the overall market dynamics. As the oversupply persists, it poses challenges for manufacturers and could further influence PV module prices.

India’s Shift Away from Chinese Ingradient

In recent developments, the Government of India (GOI) is planning to ban the import of solar module aluminium frames and glass from China. Additionally, American companies like First Solar are considering shifting away from Chinese ingredients for PV modules manufactured in India and exported to the USA. This move is set to have a significant impact on the solar supply chain.

Reliance New Energy Solar’s Ambitious Targets

In October 2021, Reliance New Energy Solar Ltd. (RNESL) made significant acquisitions in the solar sector, including REC Solar Holdings AS from Norway and India-based Sterling & Wilson Solar, with deals worth over US$ 1 billion. These acquisitions reflect RNESL’s commitment to achieving its ambitious target of 100 GW solar energy capacity by 2030, bolstering India’s renewable energy sector.

Firstgreen Consulting: Leading the Way in Renewable Energy

Amidst the changing dynamics of the solar industry, Firstgreen Consulting stands as a leading firm in the renewable energy consulting space. Specializing in solar, wind, and energy storage technologies, Firstgreen provides comprehensive consulting services catering to project life cycle needs, from feasibility studies to commissioning and operation. Emphasizing sustainability, the firm aids businesses in transitioning to cleaner energy alternatives and combating climate change effectively. Extensive research in renewables and energy efficiency enables Firstgreen to optimize energy utilization, reduce carbon footprints, and help clients achieve their sustainability goals.


The falling trends in PV module prices have reshaped the global solar market, with China’s dominance facing competition from India’s emerging manufacturing capacity. Despite trade issues and oversupply concerns, India’s focus on domestic market growth and shifts in the solar supply chain signal promising changes. As the industry moves forward, it is crucial for governments and businesses to collaborate in fostering the growth of renewable energy and achieving a sustainable future.

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