A large China-based supplier of PV modules has quoted 1.1-1.2 euro/W for January 2011 to its clients in Europe, 11-12% lower than the current level of 1.25-1.35 euro/W, according to industry sources in Taiwan.

While Germany will reduce PV feed-in tariffs by 13% on January 1, 2011, the lowered PV module prices is estimated to result in an IRR (internal rate of return) of 6-7% for PV system installation projects in the country, an acceptable minimum level of return, the sources pointed out.

China- and Taiwan-based solar cell and PV module makers have been negotiating prices for early 2011 with clients, but few settlements have been reached because all parties are observing November and December price trends which are key to prices in early 2011, the sources indicated. However, the triggering of January 2011 quotes may push other suppliers to quote for the month, the sources analyzed.