Andreas Thorsheim, the CEO of Norway-based residential photo voltaic specialist Otovo, not too long ago spoke pv journal in regards to the excessive degree of stock for photo voltaic modules in Europe and the falling panel costs. He mentioned there was a robust purchaser’s market this fall and famous that the most recent modules from the boat are the most cost effective.
European warehouses now host almost 40 GW of Chinese language-made photo voltaic panels, price about €7 billion ($7.8 billion), in line with Norwegian consulting agency Rystad Vitality.
“The photo voltaic worth chain is exclusive in its response to crises,” mentioned Norway-based photo voltaic specialist Otovo, Andreas Thorsheim, pv journal. “Solely a yr in the past we had been in nice want of inverters and modules, and thankfully the producers responded with an exquisite improve in capability that’s now benefiting photo voltaic consumers.”
Within the 13 markets the place Otovo operates, tools costs are down 9-15% to date this yr, indicating installers have seen their order books shrink and their inventories develop, in line with Thorsheim.
“Modules are sometimes bought and installer firms are sometimes obtainable to take away tools,” he added. “However in fact, for those who hoard the {hardware} purchased within the first half of 2023 till late summer time similtaneously module and inverter costs drop you improve the danger… My view is that residential, business, and authorities consumers can count on the bottom value per watt seen since earlier than the pandemic and vitality disaster. This fall will likely be a robust purchaser’s market.”
Thorsheim says customers are a bit of extra on the fence.
“However I am unsure that is sensible,” he mentioned. “As at all times in photo voltaic, those who wait are the losers. A distributed worth chain will at all times get some value alerts a bit of unsuitable, and a bit of oversupply or undersupply generally. However once more that is pure when it really works at this loopy velocity, and over time it is one of many components that makes photo voltaic extra aggressive towards conventional vitality era.
He famous that Otovo has a “zero stock technique” as a rule.
“Through the vitality disaster of 2021-22, we made some strategic purchases to unblock the worst bottlenecks, however fortunately we’re accomplished,” he mentioned. “On the finish of Q2, we held lower than €300.000 euros in stock for a €200 million annual income run fee. Our view is that prices will lower in overhead, tools and set up work and we’re positioning ourselves because the chief in reductions with out working capital or line stock.”
Thorsheim mentioned the corporate is trying to focus its whitelist with fewer producers of modules, inverters, and storage so as to use its means to affect the path of purchases within the installer ecosystem and cut back the complexity of catering to many alternative fashions.
“The drop in costs on the finish of the patron market, as seen on the Otovo platform, is monotonous and downward, and uniform all through Europe. Norway is occurring, France is occurring, the UK is occurring, Italy is occurring… I can go on and on,” he mentioned. “The newest boat modules are the most cost effective. After all, you should get new panels. “
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