A Deep Dive into the Inventory Challenge and the Road Ahead

The European solar landscape is currently experiencing a unique confluence of market dynamics. With an inventory buildup that has both industry insiders and investors scratching their heads, it’s crucial to dissect the underlying factors and potential implications.

The Inventory Revelation
Recent revelations from the Norwegian consultancy, Rystad, have sent ripples across the industry. An estimated 80 GW of unsold PV panels are reportedly sitting in European warehouses. This figure, especially when contrasted against Rystad’s earlier 40 GW estimate, has ignited fervent discussions.

A Distributor’s Perspective
Bartosz Majewski, the helm at Menlo Electric, offers an invaluable distributor’s lens to the situation. The unforeseen 30% price plummet in China’s solar market during Q3 has been a pivotal factor behind the inventory surge. Majewski delves deeper, highlighting nuances like the differentiation between “committed” and “free” warehouses and the intricacies of international shipping logistics.

Module Tech Breakdown
The majority of these stored modules cater to residential and commercial installations. Interestingly, there’s a conspicuous absence of bifacial modules. Majewski underscores the saturation in the PERC technology segment, hinting at potential market shifts on the horizon.

Pricing Dynamics and the Crystal Ball
The pricing landscape, particularly for n-type and p-type modules, provides a window into future market trajectories. While some anticipate a plateau in module price reductions, others foresee a gradual uptick in the overall cost of solar installations, factoring in rising labor and construction costs.

In Conclusion: As Europe grapples with this solar inventory challenge, the decisions made in the coming months will indubitably shape the industry’s future. Collaboration and strategic foresight are paramount to ensure a sustainable trajectory.
Information resources：PV magazine