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12/27/2016 How Expensive Is It To Manufacture A Solar Module Right Now? | CleanTechnica https://cleantechnica.com/2014/11/27/expensivemanufacturesolarmodulerightnow/ 1/7 SURPRISE ARTICLE! ELECTRIC CARS SOLAR POWER WIND POWER 100% RENEWABLE ENERGY? RSS SPONSOR A POST ADVERTISE How Expensive Is It To Manufacture A Solar Module Right Now? November 27th, 2014 by James Ayre Just how much does it cost to manufacture a solar module, as of right now? That’s possibly a question that you’ve asked yourself before, and it’s an interesting one. Of course, that cost varies based on where, and by whom, it was manufactured. Thankfully, the work of sorting and analyzing all of the necessary data has already been done for us, by GTM Research. As per GTM Research’s recent analysis, manufacturing costs in the industry’s four main markets vary by as much as 18 cents per watt (multicrystalline silicon modules). Unsurprisingly, the lowest costs are in China — followed then by Malaysia, Taiwan, and the US. The “direct manufacturing cost” in China — the cost not including things like “selling, general and administrative costs, interest, shipping, or warranty expenses” — is 50 cents per watt. As per the report’s findings, the main source of China’s manufacturing cost advantage is down to the lower costs of necessary and key consumables in the manufacturing process — which is simply down to the fact that China possesses huge domestic “industrial ecosystems.” Greentech Media provides more: GTM Research lead upstream solar analyst Shyam Mehta notes that many domestic consumables vendors are pureplay solar firms that rely on their component customers for revenue, meaning that component producers can exert significant pricing leverage on their vendors. Many larger wafer, cell and module vendors also produce key consumables internally (eg, crucibles, wire, frames, junction boxes). Malaysia is estimated to currently have the lowest direct labor costs on a perwatt basis due to a high degree of automation at Malaysian factories and low wage/salary rates, even compared to China. The availability of cheap and skilled labor (due to the country’s prior experience with semiconductor manufacturing) has made Malaysia a popular location for many PV manufacturers, including SunPower (cells), Flextronics (modules), Hanwha Q Cells (cells), and Comtec Solar (ingots/wafers). Back to Top ↑ Advertisement Click here to sponsor CleanTechnica. Bring your brand to millions of readers every month. Advertisement 46.1K FOLLOWERS 25.3K FANS 13.8K SUBSCRIBERS 4.0K FANS 126 FOLLOWERS 89.3K FAN LOVE CleanTechnica is the #1 cleantechfocused news & analysis site in the world. Subscribe today! The future is now. 66 97 18 2

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Page 1: How Expensive Is It To Manufacture A Solar Module Right · PDF file12/27/2016 How Expensive Is It To Manufacture A Solar ... R esear ch, M alaysia, solar module ... Is It To Manufacture

12/27/2016 How Expensive Is It To Manufacture A Solar Module Right Now? | CleanTechnica

https://cleantechnica.com/2014/11/27/expensivemanufacturesolarmodulerightnow/ 1/7

SURPRISE ARTICLE! ELECTRIC CARS SOLAR POWER WIND POWER 100% RENEWABLE ENERGY? RSS SPONSOR A POST ADVERTISE

How Expensive Is It ToManufacture A Solar ModuleRight Now?November 27th, 2014 by James Ayre

Just how much does it cost to manufacture a solar module, as of right now? That’s possibly aquestion that you’ve asked yourself before, and it’s an interesting one.

Of course, that cost varies based on where, and by whom, it was manufactured. Thankfully, thework of sorting and analyzing all of the necessary data has already been done for us, by GTMResearch.

As per GTM Research’s recent analysis, manufacturing costs in the industry’s four mainmarkets vary by as much as 18 cents per watt (multicrystalline silicon modules).Unsurprisingly, the lowest costs are in China — followed then by Malaysia, Taiwan, and the US.

The “direct manufacturing cost” in China — the cost not including things like “selling, generaland administrative costs, interest, shipping, or warranty expenses” — is 50 cents per watt.

As per the report’s findings, the main source of China’s manufacturing cost advantage is downto the lower costs of necessary and key consumables in the manufacturing process — whichis simply down to the fact that China possesses huge domestic “industrial ecosystems.”

Greentech Media provides more:

GTM Research lead upstream solar analyst Shyam Mehta notes that many domesticconsumables vendors are pureplay solar firms that rely on their component customers forrevenue, meaning that component producers can exert significant pricing leverage on theirvendors. Many larger wafer, cell and module vendors also produce key consumablesinternally (eg, crucibles, wire, frames, junction boxes).

Malaysia is estimated to currently have the lowest direct labor costs on a perwatt basisdue to a high degree of automation at Malaysian factories and low wage/salary rates, evencompared to China. The availability of cheap and skilled labor (due to the country’s priorexperience with semiconductor manufacturing) has made Malaysia a popular location formany PV manufacturers, including SunPower (cells), Flextronics (modules), Hanwha QCells (cells), and Comtec Solar (ingots/wafers).

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Page 2: How Expensive Is It To Manufacture A Solar Module Right · PDF file12/27/2016 How Expensive Is It To Manufacture A Solar ... R esear ch, M alaysia, solar module ... Is It To Manufacture

12/27/2016 How Expensive Is It To Manufacture A Solar Module Right Now? | CleanTechnica

https://cleantechnica.com/2014/11/27/expensivemanufacturesolarmodulerightnow/ 2/7

In comparison to China’s 50 cents per watt, USbased companies can manufacture amulticrystalline silicon module for 68 cents per watt. These numbers may change soon, though,owing to changes in the landscape here (e.g., the Silevo factory SolarCity is now workingon and a SolarWorld factory).

“Both of these facilities focus on higherefficiency technology that has historically been morecostly to produce,” stated GTM Research solar analyst Jade Jones. “There’s the question notonly of manufacturing location, but also of the producers’ ability to bring down the cost forvarious technology solutions.”

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Tags: China, GTM Research, Malaysia, solar module manufacturing costs, taiwan, US

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Page 3: How Expensive Is It To Manufacture A Solar Module Right · PDF file12/27/2016 How Expensive Is It To Manufacture A Solar ... R esear ch, M alaysia, solar module ... Is It To Manufacture

12/27/2016 How Expensive Is It To Manufacture A Solar Module Right Now? | CleanTechnica

https://cleantechnica.com/2014/11/27/expensivemanufacturesolarmodulerightnow/ 3/7

About the Author

James Ayre 's background is predominantly in geopolitics and history, but hehas an obsessive interest in pretty much everything. After an early life spent inthe Imperial Free City of Dortmund, James followed the river Ruhr toCofbuokheim, where he attended the University of Astnide. And where he alsobriefly considered entering the coal mining business. He currently writes for a

living, on a broad variety of subjects, ranging from science, to politics, to military history, torenewable energy. You can follow his work on Google+ .

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8 Comments CleanTechnica Login1

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Ronald Brakels • 2 years ago

Well, last I checked the cheapest panels were about 61 US cents a watt in Australia.And they were of course Chinese. But because our dollar has recently fallen to us itfeels like solar panels have increased in price. Don't worry though, it doesn't makemuch difference and we'll keep installing them. After a while they'll start falling again.Either that or our dollar will fall through the floor and we'll start making them ourselves.Maybe I can find some nice silicon ingots lying around at Maralinga. 3

LifeonBatteries • 2 years ago

see more

> Ronald Brakels

Ronald don't worry about Maralinga, I think we all over looked this issueApparently it’s 100’s of times more safer to live around nuclear reactor, thensteel industry, the steel industry do discharge technically enhance radioactivematerial as a byproduct and discharge it in the airways and water ways.

Over a month ago, I found an article over radiation in Australia in an industrywhich is not known for radioactivity. We always associate radiation withNuclear power stations which is not truly accurate, I have since learnt thatsteel industry on the eastern coast of New South Wales Port Kembla Australiadischarges radioactive substance to airways, a byproducts of the uraniumwhich gets technically enhanced to other radioactive substance duringprocessing.

Nuclear power station you have to wait for an accident like Fukushima, but withthe steel industry people are exposed on a daily basis all the time to technicallyenhance radioactive material exhaust stack emissions.According to documents, the Port Kembla steel works Australia exceeds theU.K.’s and United States emission standards to atmosphere under radioactivesubstance emission ACT.

Ronald Brakels • 2 years ago> LifeonBatteries

Maralinga is now pretty safe provided one doesn't go digging in thewrong spot, but radiation exposure in places there is much higher than

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Page 4: How Expensive Is It To Manufacture A Solar Module Right · PDF file12/27/2016 How Expensive Is It To Manufacture A Solar ... R esear ch, M alaysia, solar module ... Is It To Manufacture

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wrong spot, but radiation exposure in places there is much higher thanat Port Kembla. It's not the rads that will do you in at Kembla, it's thetoxins in the air and soil. Australia is not known for acid rain, but theygot it there. The primary school, the one located next to what wasAustralia's largest smokestack, it had to be moved on account ofcontamination. There's lead in the soil and bad respiratory problems byAustralian standards. (Although it's a paradise by Shanghai standards.)This is not to say radiation from any source is good, just saying it isway down on the list of threats one faces in Port Kembla.

And the biggest source of nonbackground radiation exposure inAustralia? Smoking. Roughly two packs give you as much radiation asa chest xray. Perhaps 2% of smoking deaths could be caused byradiation. 1

LifeonBatteries • 2 years ago> Ronald Brakels

I think the rads did cause 13 deaths of leukaemia cluster in 1996at one school next to that steelworks, Radiation does build up inthe human bone marrow like Lead – 210, which has life of 44year of radioactivity in the body which is highly toxic.I guess you’re right about the air emissions, CR6 from steelindustry Hexavalent chromium is one of the predominantcarcinogens a human genotoxic made famous by ErinBrockovich case in the USA. Australia has dioxins rates setworst then that of a third world country 70 times higher thenWHO or European standards for 2014 at this same steelworks. Nuclear power stations are not allowed to dischargeRadionuclides, so why are steel industry allow dischargeradionuclide over communities unregulated in Australia, whennuclear power stations are not allowed to do so around inwestern world.

Nuclear power stations are monitored; steel industries are notmonitored for radionuclides in Australia.

Ronald Brakels • 2 years ago> LifeonBatteries

With the toxic stew of Kembla chemicals it's impossible to saywhat caused what. But heavy metals and chemical carcinoginsare definitely bigger threats, and that's still true for people whowork at the steel mill.

While a fission plant should never emit any appreciable radiationwhile in operation and it is a sign that something has goneseriously wrong if it does, an interesting bit of trivia is that sincefusion plants will most likely use a radioactive isotope ofhydrogen, it will basically be impossible to stop them emittingradiation all the time since it is basically impossible to containhydrogen. The amount is not that huge in the scheme of things,a mere Three Mile Island or so a year, but you probably wouldn'twant to live next to one.

JamesWimberley • 2 years ago

Nobody is frightened of Malaysia, and I assume it doesn't have the money to subsidiselossmaking foreignowned factories, so it avoids trade wars. An interesting successstory. 2

RawLasVegan • 2 years ago

Hi James, I was looking forward to getting an answer to the question posed in yourarticle title, but the article didn't answer it. Did you not notice this? You price watts, butnot modules. Please edit either the title or the article. My preference is that you edit thearticle so we can learn how much the modules cost now. Thanks.

Wayne Williamson • 2 years ago

I'm actually surprised the US can come in at around 30 percent more for a panel thanwhat China can do. Although, no mater where they are made, it is probably highlyautomated.... 1

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