An annual price drop of 10% for solar cells is healthy for the development of the solar industry, said Chang Peng Heng, CEO of Motech Industries, at the PV Taiwan 2010 exhibition. However, since the solar industry is still at an early growth stage, prices are still easily impacted by the overall economy and supply-demand volatility, he added, noting that cell quotes went up significantly in 2010.

The Taiwan-based solar cell maker is seeing no order decline in the fourth quarter, which means demand for the first quarter of 2011 should remain strong. Though quote negotiations are still ongoing, a clearer price trend should appear in December, Chang indicated.

Currency exchange rates could impact pricing as well, especially with the strengthening Chinese yuan, which could make China-made solar products more expensive for overseas customers as well as erode foreign currency revenues. Since China's module quotes are considered a leading indicator of global module prices, a strong yuan could serve to buoy module and cell quotes around the world, he said.

Motech's solar cell capacity will reach 1.1GWp in 2010 and up to 1.7GWp in 2011. The Kunshan, China plant currently accounts for one-third of its solar cell capacity. For cost management, Motech is also ramping up capacity for solar wafers.