Don’t put off until tomorrow …

… what you can do today. PV and installation professionals should act now as module prices drop to new lows despite efficiency revisions.

From pv magazine Germany

PV professionals and planners should take note as module prices fell again in August, hitting a new all-time low. Almost all technology classes now trade at or below January levels, even after efficiency thresholds distinguishing conventional and high-efficiency modules were raised by 0.5 percentage point.

Today, products with efficiencies below 23% are rare, as 460 Wp has become standard for 2 m² modules. The 500 W barrier has also been surpassed in this format, designed specifically for roofs. Manufacturer Aiko Solar already markets a module under 2 m² with that maximum power. Many producers have adjusted cell formats without changing module dimensions. The emerging standard in the roofing sector is now a module with 48 or 96 half cells measuring 182 × 105 mm. It remains to be seen how long this trend continues.

Manufacturers are acting quickly to end the ruinous price war. The Chinese government is gradually phasing out tax incentives and subsidized exports of solar modules. Attempts to stabilize prices have so far failed, but efforts are intensifying and should be taken seriously.

Polysilicon prices are rising due to deliberate production cuts in Asia. In Europe, prices for modules on order—those not yet manufactured—are already higher than products in local warehouses or in transit. This suggests that, at least on the spot market, high-efficiency solar modules are currently at their lowest prices and may not fall further soon, following the motto: “Buy now, because it won't get any cheaper.”

The current market differs sharply from earlier cycles. Weak demand in spring rebounded briefly in July, according to German Federal Network Agency figures, but no new boom is visible. Some investors appear to have concluded, “It's not going to get any better, so we'd better start our planned projects.” This is sound advice, as political signals in Europe indicate strong headwinds for renewable energy expansion.

Most conservative governments are reducing support for renewables, putting climate targets at risk or questioning them outright. The European Green Deal, launched only a few years ago, is being compromised by international tariff policy in favor of short-term economic interests, particularly those of the United States and its president, Donald Trump. Outrage is growing within the renewable energy sector and among forward-looking business associations in other industries.

In Germany, Federal Minister for Economic Affairs Katherina Reiche (CDU) has put new gas-fired power plants out to tender, ostensibly to secure fuel supplies. These actions slow renewable energy deployment and smart grid development, potentially undermining profitability and capacity planning.

If current policies persist, the photovoltaic sector faces difficult years ahead. Long-standing industry representatives fear a repeat of the early 2010s, when much of the European solar industry collapsed, costing hundreds of thousands of jobs and delaying the energy transition by a decade. CDU and FDP politicians were largely blamed for the indiscriminate cuts that occurred then.

If this situation becomes “Altmaier 2.0” under Minister Reiche, urgent action is needed. The sector should rapidly deploy as many PV installations and energy storage systems as possible, demonstrating that the technologies are safe, grid-compatible, and capable of supporting or even creating grid infrastructure. Failing that, maximum societal and economic pressure is required to prevent repeating past mistakes. Opportunities to mitigate or reverse climate change may be limited.

Prices in July 2025, including changes from the previous month (as of August 18).

About the author: Martin Schachinger has studied electrical engineering and has been active in the field of photovoltaics and renewable energy for almost 30 years. In 2004, he set up the pvXchange.com online trading platform. The company stocks standard components for new installations and solar modules and inverters that are no longer being produced.