We recently discussed the current low pricing of Chinese solar panels being offered at the wholesale level, and commented that this pricing was being reflected in some of the low cost solar systems being promoted in Adelaide, but cautioned on buying solar on price alone.

It is very interesting to look at the year on year price reductions offered in the Adelaide (and Australia wide) wholesale solar panel market from China, Germany and Japan.:

Country Of Manufacture    Price Decline From March 2012 to March 2013 For Crystalline Panels

Germany                                                       -26%

China                                                             -30%

Japan                                                            -23%

Quite astounding declines in pricing – It is hard to see how this downward tend can be sustained. The global over capacity to manufacture solar panels and the decrease in demand (globally) has caused most of this downward price pressure on solar p.v. panels. Given the weakening Australian dollar (as of  today 11 May 2013)- the Australian dollar has depreciated against the U.S. dollar by about 4 percent, with the U.S. dollar looking like it will strengthen further from here, this could mean an increase in solar panel prices in the medium term and inverters for that matter.

Maybe we are at the ‘bottom’ of the price cycle for solar power systems in Adelaide, given the above factors. The competitive nature of solar installation in Adelaide means that alone is likely to keep a ‘cap’ on how much prices may rise over the next 3-6 months. We will continue to monitor the market.