The decline has stopped. Solar panel prices rose in January.

The cooling of the photovoltaic market was also reflected in the figures in 2024. The installed capacity of solar power plants increased by only 4%, while in the previous year 2023, the year-on-year growth was 53%. This was despite falling prices of photovoltaic components, which resulted in a 28% reduction in the installation costs of photovoltaic power plants.

Lower demand for photovoltaic installations in Europe was recorded by component manufacturers. Leading manufacturers of photovoltaic inverters announced production cuts and layoffs. They expect a slowdown in installations in the household, business and industry sectors due to the cancellation of subsidies. On the other hand, the large-scale projects sector in the energy sector is still expected to grow.

This last year's trend could change to some extent. This is indicated by the prices of photovoltaic modules in Europe, which have increased slightly at the beginning of this year. This halted the decline that had lasted for several months. Although the price increases for individual types of components are only slight, they may indicate a change in market dynamics.

In the article you will learn:

• what the expectations of photovoltaic panel buyers showed in January 2025,
• what has changed in the European market,
• what types of solar panels are becoming more and more popular,
• how the prices of photovoltaic modules and inverters are developing.

According to the online trading platform sun.store, there are several factors behind the change. The number of popular models in stock has decreased, which has allowed prices to be increased slightly. In addition, Chinese manufacturers of photovoltaic components increased prices in December due to changes in subsidy policy. Some European distributors took advantage of the situation and also increased the prices of modules in stock.

Index highest in recent months

Market sentiment remains relatively strong, with the PV PMI purchase index rising to 71 in January, which, according to sun.store, reflects growing confidence among purchasing managers and a more balanced supply and demand dynamic.

The indicator is based on the purchasing expectations of over 900 managers (installation companies, component sellers and distributors) and provides an overview of the current situation on the photovoltaic component market and the expected developments in the near future.

According to sun.store, the highest value of the index in recent months is a signal that companies are starting to look beyond the short-term price decline and are preparing for an active first quarter of 2025.

Graph: Solar panel price development by category

Only 12% want to reduce orders

More than half of the respondents (54%) plan to increase the amount of components purchased, 34% want to maintain demand at the current level, and 12% of respondents plan to reduce new orders.

"The beginning of the year is an important period in terms of technology procurement, as companies prepare for installations in the spring and summer months. The increase in the index shows that buyers want to secure products now and are not waiting for further price declines, which may not happen to the same extent as in the second half of 2024," the sun.store survey states.

In terms of preferences for individual types of photovoltaic modules, it is possible to observe an increased interest in more efficient N-panels. Buyers are thus ceasing to decide exclusively on price and are more considering the properties and long-term value of the technology.

"Although future price corrections are not excluded, the strong start to the year suggests that the market is stabilizing. This is in stark contrast to the persistent price erosion that we could observe during most of 2024. Whether the renewed confidence in the market will translate into sustainable growth will be shown in the coming months. But at this moment, the data shows that the market is regaining its footing and preparing for an active 2025," the report concludes.

Source: www.energie-portal.sk