After a period of rapid growth, the first quarter of 2024 saw new market dynamics in the European PV market. According to solar trading platform sun.store, demand for solar modules in Europe has declined since February, with installation rates and prices also falling.

Specifically, in terms of market demand, the Purchasing Managers' Index (PMI) for Europe's major photovoltaic markets has shown a slight decline for several months in a row, from 73 points in February to 68 points in April. Although more than half of the buyers said they plan to increase their purchases of PV products in the coming month, the overall market demand still shows a weak trend. A combination of flat energy prices and high inflation has led to slower growth, while the boom in household PV installations, previously fuelled by the energy crisis, is receding.

In terms of installation rates, although major European PV markets such as Germany continue to grow, the rate of growth has slowed significantly. Germany, for example, although the first four months of 2023 new PV installed 3.72GW, an increase of 79%, but compared to the previous years of rapid growth, this figure has shown signs of market saturation. The situation is much the same in other European countries, with declining installation rates reflecting a market that may be entering a period of adjustment.

The downward trend is particularly evident in terms of module prices. Since 2023, PV module prices have continued to decline, and by the first quarter of 2024, module prices in the European market had reached a new low. Prices for all-black modules have risen slightly, but prices for both mono and bifacial modules have declined. This price change has a certain stimulating effect on end demand, but overall, the decline in component prices has not been able to fully offset the impact of the decline in market demand and installation rates.

Analysts pointed out that this change in the European PV market is the result of a combination of factors. In addition to stable energy prices and high inflation and other macroeconomic factors, policy adjustments, market saturation and overcapacity and other issues also have an impact on the market. Despite the continuous progress of PV technology and cost reduction, changes in market demand still pose new challenges to the industry's development.

Against this backdrop, PV companies need to be more flexible in adjusting their market strategies to adapt to the changing market environment. At the same time, governments and industry organisations need to take measures to promote the sustainable development of the PV industry and ensure that it plays a greater role in the global energy transition.

Part of the article excerpted from the network, infringement contact deleted.