Background

December 2011: 2.43 US$/Wp
latest prices: http://www.solarbuzz.com/facts-and-figures/retail-price-environment/module-prices

Retail Price Summary - December 2011 Update

There has been a slight slowdown in the number of retail price reductions in the latest survey as companies rush to install systems before the year end.
2011 had the single largest number of price reductions of any year during the last decade. At 1,159 reductions, this was higher than the previous highest annual reductions of 1,048 in 2009. The 2011 number of increases to decrease ratio was 1:3.69, compared to 1:4.4 in 2009.
Over the last ten years, six of the years showed more price decreases than increases, the balance the opposite. The highest ratio of increases to decreases was back in 2005, when 1,107 increases beat out just 245 decreases, a ratio of 4.5:1. This occurred during a period of tight polysilicon capacity and strong demand growth in Europe.

The more recent overall market price level drops have been helped by new producers and new modules and, in particular, higher cell efficiencies. Over the last 12 months, prices have dropped quicker than costs as supplies have outpaced demand growth.

Price reductions over the 2009 and 2011 period have now taken the industry within reach of self-sustaining economics in selected regional market segments. This has been the clear long-term goal for this industry and is the successful outcome of government support over the last decade.