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EU-China Minimum Price Falls to €0.53 Per Watt: PV Tech

published: 2014-04-01 13:46

EU has set a price/volume limitation on certain PV products exported from China to fight against the dumping and subsidies issues. The new minimum price that Chinese manufacturers can charge EU buyers could fall from €0.56/watt to €0.53/watt starting from 2Q14.

PV Tech reported that the current level of €0.56/watt (US$0.77/watt), agreed as part of the EU-China solar trade deal last year, can be adjusted each quarter if market prices fall. The annual quota for Chinese manufacturers looking to access the EU market will remain at 7GW as it can only be adjusted annually.

“If the rumors are true then this is a welcome move from the [European] Commission and a move that we factored into our recent strike price modelling," said Paul Barwell, CEO of the UK’s Solar Trade Association. “There has been anecdotal evidence that non-Chinese manufacturers are now able to sell below the minimum import price (MIP) for Chinese panels, putting Chinese manufacturers at an unfair disadvantage. This news, if confirmed, will boost the availability of high quality product from the leading Chinese manufacturers, and sends a clear signal that solar prices are continuing to fall.”

“Depending on the strategy of the distributor, this will either maintain the current inertia in the market, though bringing tier one Chinese product into line with that now sourced from European or Korean manufacturers. Those who bought aggressively in preparation for a busy spring may find the reduction a bitter pill, but nevertheless have the eight-week shipping time to move stocks, which, given the current market should be ample,” said Ian Draisey, managing director of BayWa r.e. Solar Systems, a distributor in the UK.

Draisey also pointed out the bigger impact to PV Tech of the supply to medium to large-scale projects because “Tier one is now ‘back in the room’ and investors may well be weighing up the risks of origin uncertainties against the bankability of the better known, and experienced brands.”

PV Tech explained in its report that distributors, installers and project developers in Europe have been warned against trying to circumvent the price undertaking and could find themselves liable for punitive import duties if caught. Customs officials in the Netherlands have already detained a consignment of modules in order to determine their origin in a clear sign that the undertaking will be enforced. Yet, the European Commission would not comment on the MIP decrease to PV Tech.

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