Chinese currency devaluation is good news for solar say REA

The recent devaluation of the Chinese currency could mean cheaper solar panels, according to the Renewable Energy Association.

The Chinese Government devalued the Yuan last week by 2% to reduce the cost of exports.

Almost two third (60%) of solar PV modules are produced in China.

But while the rest of the world will see lower module prices, they will not come down in the EU due to minimum import pricing, set at €0.56/w.

In the recent KPMG/REA report ‘UK Solar Beyond Subsidy: The Transition’ it is estimated that modules account for just over 50% of installation costs at UK sites, so any reduction in cost is extremely important for the overall cost of the system. 

The report makes clear that solar projects in the UK could be built without subsidy within the next few years provided there is stable policy support and costs continue to fall.

"As the solar industry moves to a world beyond subsidies, cost reduction in the installation process has become even more important in order to reach grid-parity more quickly,” said REA Policy Analyst, Lauren Cook.

“MIP has prevented module costs from coming down over the past few years and this additional cost has been funded through subsidies. It is extremely important for the solar industry that MIP is not extended beyond December 2015 to maintain a sustainable industry, which is also in the interests of all energy bill payers.”

Jamie Hailstone is a freelance journalist and author, specializing in local government, transport and energy issues