Solar module prices halt slide on German demand, Barclays says

NEW YORK (Bloomberg) -- Solar module prices, which have dropped by more than half in the past year, have stopped declining as a seasonal demand increase in Germany reduces inventories, according to Barclays Capital.

Prices for most module supplies in Germany, the world’s largest solar market, will stay in the $1.90 to $2 per watt range through November as several of the leading Chinese manufacturers are sold out for the next two months, Vishal Shah, an analyst at Barclays in New York, said in a note to clients.

“Module prices have declined substantially and reached a level where incremental price reduction is harder to achieve,” Shah said. In December, prices may decline to $1.80 per watt as winter ice and snow make installations difficult. “Visibility beyond November currently remains limited.”

German demand for solar modules is stronger than many suppliers anticipated and may benefit China’s Yingli Green Energy Holding Co. and Tempe, Arizona-based First Solar Inc.

Yingli rose for the first time in five days, gaining 27 cents, or 2.2 percent, to $12.52 at 12:25 p.m. in New York Stock Exchange composite trading. The shares have more than doubled this year. First Solar rose 42 cents, or 0.3 percent, to $151.04.

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