If China-made solar wafers and cells get pass from EU, Taiwan solar cell makers expected to step into PV modules

30 July 2013

The European Union (EU) has not yet decided on whether to impose anti-dumping tariff rates on solar-grade crystalline silicon wafers and cells imported from China, and if the EU does not impose the tariff, Taiwan-based solar cell makers believe it will be difficult to compete with China-based makers in price in the Europe market and therefore are expected to extend production to PV modules mainly for exports to Europe, according to some of these Taiwan-based makers.

EU has reached a consensus with the China government about setting price limits of EUR0.55-0.57 (US$0.73-0.76)/W and an annual quota of 7GWp for PV modules imported from China to settle anti-dumping disputes, the sources indicated. Since EU anti-dumping investigation covered China-made solar-grade crystalline silicon wafers and cells as well, the EU will either impose anti-dumping tariff rates on these products or not impose any tariff, the sources noted.

Taiwan-based solar cell makers quote US$0.39-0.41/W for exports to the Europe market currently, higher than US$0.35-0.38/W offered by China-based fellow makers and becoming less competitive in price, the sources pointed out.

As demand for PV modules in the Europe market in 2013 is estimated at 10-12GWp, the import quota of 7GWp will leave at least 3-5GWp available for supply sources other than in China including Taiwan-based makers, the sources analyzed. Since solar cells take up 54-56% of the production cost per watt for PV modules, Taiwan-based solar cell makers' average price of US$0.4/W will lead to PV module prices of US$0.71-0.74/W or EUR0.53-0.56/W, conforming to price limits of EUR0.55-0.57/W set for China-made PV modules, the sources pointed out. In addition to price competitiveness, PV modules made of Taiwan-produced solar cells will be generally of better quality than China-made products, the sources indicated.