Photovoltaic raw materials prices to shrink in 2009, iSuppli says

[jpak]

http://www.edn.com/article/CA6614733.html

Pricing for polysilicon used to create photovoltaic (PV) cells is expected to drop in 2009 and the following years because of imbalances in the solar supply chain, according to iSuppli Corp.

According to the market research company, global supply of polysilicon is expected to double in 2009, while demand will grow by only 34%. Although demand for polysilicon will still exceed supply in aggregate in 2009, iSuppli predicted the sharp increase in supply will cause polysilicon pricing to begin a steep plunge in 2009 after peaking this year.

The company reminded that strong solar-driven demand that arose in 2005 allowed suppliers of silicon and wafers to dictate pricing and contract terms to customers over the past three years. Indeed, with spot market prices for polysilicon rising as high as $500 per kilogram, up from as low as $200 in 2007, the corresponding wafer price rose to $13 per piece and higher in 2008, according to iSuppli's data.

However, iSuppli said that the average spot market price for polysilicon is expected to decline dramatically in 2009, falling to as little as $200 per kilogram.

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[panader0]

1. Our government should manufacture PV cells

and supply them at cost to the people.

[GreenPartyVoter]

2. I've always thought so too.