PV module shipments declined in Q1’11 compared with the previous quarter, for the first time since the beginning of 2009. Prices have also begun to decline rapidly since the abrupt halt to demand in the booming Italian market, in the lead up to last week’s announcement of Italy’s new feed-in tariff.
IMS Research’s latest analysis of the global PV industry reveals that global PV module shipments for the quarter declined by nearly 10%. Average prices, which had remained strong throughout 2010, supported by high demand from major European markets, also fell sharply. Shipments and prices are forecast to continue their decline in the second quarter, with the prices of crystalline modules from Chinese Tier-2 suppliers falling the quickest.
Great uncertainty in the Italian market has been a significant factor in slowing the booming PV market. Demand from Italy came to a stand-still overnight when it was announced that the current feed-in tariff would be suspended. This has led to high inventory levels and crashing end-market prices.
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