S&P Global Commodity Insights Launches World's First Independent Daily Solar Module Panel Price Assessments for Asia, US, Europe and a Global Marker
S&P Global Commodity Insights has launched the world's first independent daily spot market solar photovoltaic (PV) panel price assessments for US, Europe, and Asia. The new Platts Solar Module prices include six individual assessments and a Global Solar Module Marker, providing a global perspective on solar panel prices. These assessments reflect the value of bifacial solar modules for commercial, industrial, and utility-scale projects.
The launch comes as solar PV is expected to be the most installed energy source in the coming decades, with S&P Global forecasting over 4 TWdc of new installations before 2030. The assessments aim to bring transparency to the increasingly commoditized solar module market, addressing the industry's need for independent pricing information.
- Launch of world's first independent daily solar module price assessments
- Forecast of over 4 TWdc of new solar installations before 2030
- Solar expected to account for nearly 40% of new power generation capacity globally by 2050
- Expansion of S&P Global Commodity Insights' pricing services in the renewable energy sector
- Significant solar module pricing volatility since 2023 due to importation duties, oversupply, and supply chain costs
Insights
The introduction of independent daily solar module panel price assessments by S&P Global Commodity Insights is a significant milestone worth noting for potential investors. As solar modules become a more prevalent and sought-after commodity, having transparent and reliable pricing benchmarks is invaluable. This development aids in mitigating volatility and provides a clearer understanding of market trends, ensuring better decision-making for stakeholders.
Price volatility in solar modules has been driven by various factors such as import duties, oversupply and supply chain disruptions. With the standardized daily price assessments, stakeholders can better manage risks and anticipate market movements. For instance, companies planning large-scale solar projects can now more accurately forecast costs and manage budgets. Similarly, investors can monitor price trends and make more informed investment decisions in the renewable energy sector.
However, it's essential to recognize that although these assessments bring transparency, they do not eliminate the inherent volatility of the market. Price changes due to geopolitical events, trade policies and technological advancements still hold sway. Nonetheless, the provision of such granular data is undoubtedly a step towards a more efficient and predictable market environment.
From a financial standpoint, the launch of these daily solar panel price assessments can be seen as a positive development. Solar energy companies and investors will now have access to more precise pricing data, which can be instrumental in making strategic decisions. The availability of accurate and independent price data could also enhance the attractiveness of solar energy projects to financial institutions and investors, potentially leading to increased funding and investment in the sector.
The Platts Global Solar Module Marker will serve as a comprehensive indicator of global price trends, which is critical for those involved in international trade and investment. By providing a daily average of solar panel prices across several key markets—US, Europe and Asia—this marker offers a balanced view that accounts for regional variations. Financial analysts and investors can use this marker to gauge the overall market sentiment and identify pricing anomalies.
In the short term, this initiative will likely stabilize the market by reducing information asymmetry among buyers and sellers. In the long term, it could lead to more competitive pricing and innovation within the industry as companies strive to optimize their cost structures and improve efficiency to stay competitive.
Aids Transparency in Technology Pricing as Solar Modules Become Increasingly Commoditized
Edurne Zoco, Executive Director of Analysis, Clean Energy Technology, S&P Global Commodity Insights, said: "Solar PV will be the most installed energy source for the next decades, with S&P Global Commodity Insights forecasting more than 4 terawatts direct current (TWdc) of new installations before 2030, which equates to three times the total power generation capacity of the US today. Furthermore, solar will account for nearly
With the exponential growth in the manufacture, trade and installation of solar modules, industry and market interest in an independent, transparent source of physical market solar module pricing has expanded accordingly. After receiving feedback from the market, S&P Global Commodity Insights is now offering six new daily price assessment reflecting the value of bifacial solar modules procured for commercial and industrial (C&I) and utility scale renewable energy projects.
The new spot physical market price assessments of solar modules of differing megawattage (MW) and delivered duty paid (DDP) or free on board (FOB) include:
- Platts Solar Module FOB China 5-50 MW, reflecting 10-30 days forward free on board (FOB)
Shanghai, China - Platts Solar Module FOB China 50-100 MW, reflecting 10-30 days forward free on board (FOB)
Shanghai, China - Platts Solar Module DDP
Europe 5-50 MW, reflecting 28-70 days forward delivery toRotterdam ,Europe - Platts Solar Module DDP
Europe 50-100 MW, reflecting 28-70 days forward delivery toRotterdam ,Europe - Platts Solar Module DDP US 5-50 MW, reflecting 28-60 days forward for delivery to US East Coast
- Platts Solar Module DDP US 50-100 MW, reflecting 28-60 days forward for delivery to US East Coast
- Platts Global Solar Module Marker is a daily average of the six individual solar module panel assessments, which will provide a global perspective of solar panel prices
The Platts Solar Module price assessments reflect solar modules with 570 -720 watts (W) of output. Topcon specification and wafer sizes of 182-210 mm for volumes of 5 megawatt (MW) up to 50 MW, and 50 MW up to 100 MW. The value reflects solar modules, expressed as an outright price in US cents per watt.
Annalisa Jeffries, Global Head, Electricity Power Pricing, S&P Global Commodity Insights: "We take seriously our commitment to help the marketplace and industry find solutions to pricing challenges and we're pleased to heed the call and bring transparency to the solar module market, which is becoming more commoditized and is increasingly important to energy transition planning. We bring our 100-year-plus experience in price assessment methodology to a new use, in this electricity-producing technology, at a time when the marketplace is seeking a recognized benchmark provider."
The price assessments, announced by subscriber note, will follow the Platts Market-on-Close methodology based on the concept that price is a reflection of time. All market pricing indications, such as bids, offers and transactions, will be published in real-time throughout the full-day Platts price assessment process, which culminates in an end-of-day price assessment reflecting the value as determined by buyers and sellers in the open market at the 4:30 pm
Importation duties, oversupply, and supply chain costs have led to significant solar module pricing volatility, particularly since the start of 2023.
The new spot market Platts solar module panel DDP and FOB price assessments are available via S&P Global Commodity Insights products and services, including such as Platts Connect, Platts Market Center, and the Platts price database.
The new spot market Platts Solar Module prices augment S&P Global Commodity Insights' pre-existing Platts spot physical market electricity prices, which have been published for decades, as well as the more recent Platts Capture Prices – what the renewable energy generators receive for the electricity they produce across a daily period -- which were launched in 2018 in
Media Contacts:
Americas: Kathleen Tanzy + 1 917-331-4607, kathleen.tanzy@spglobal.com
EMEA: Paul Sandell + 44 (0)7816 180039, paul.sandell@spglobal.com
About S&P Global Commodity Insights
At S&P Global Commodity Insights, our complete view of global energy and commodity markets enables our customers to make decisions with conviction and create long-term, sustainable value.
We're a trusted connector that brings together thought leaders, market participants, governments, and regulators and we create solutions that lead to progress. Vital to navigating commodity markets, our coverage includes oil and gas, power, chemicals, metals, agriculture, shipping and energy transition. Platts® products and services, including leading benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights. S&P Global Commodity Insights maintains clear structural and operational separation between its price assessment activities and the other activities carried out by S&P Global Commodity Insights and the other business divisions of S&P Global.
S&P Global Commodity Insights is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information visit https://www.spglobal.com/commodityinsights.
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SOURCE S&P Global Commodity Insights
FAQ
What new price assessments has S&P Global Commodity Insights (SPGI) launched for solar modules?
How much new solar installation capacity does S&P Global Commodity Insights (SPGI) forecast by 2030?
What percentage of new power generation capacity is solar expected to account for globally by 2050, according to S&P Global Commodity Insights (SPGI)?
What factors have led to significant solar module pricing volatility since 2023, as mentioned by S&P Global Commodity Insights (SPGI)?
