Prices of China-made solar modules for Europe will fall around 5-10% according to Xingxue Tong, president and COO of China-based LDK Solar. The modest decrease for next year is due to over-aggressive price cuts in 2009, and judging by the expected 6-8% internal rate of return (IRR) for solar systems in Europe in 2011, the price cut is acceptable, Tong added.

With module makers now with more experience in setting correct market prices, module prices have remained fairly stable, Tong said, but added that system installers will nonetheless continue to demand larger price cuts in 2011.

Tong pointed out that Europe-based module makers will see a tougher 2011 as they become less competitive in pricing compared with their Asia counterparts. China and Taiwan's solar cell makers will also need to realize that developing Asia module customers will become increasingly important, and could no longer rely solely on their customers in Europe.