1. EnergyTrend 12/01/2011
EnergyTrend: Taiwanese Manufacturers to Enter Solar System Market and Face New Challenge
As a result of the persisting price downtrend, the mid-stream Taiwanese solar cell makers have been
facing deficits since the beginning of 2011. With the prices showing no signs of rebound in the near
term, manufacturers have shifted the focus to the end market, bidding for the Taiwanese and
foreign solar system installations through sole proprietorship, joint ventures or strategic alliances.
Referring to the global market’s dynamics shift, it is inevitable for the Taiwanese manufacturers to
place more emphasis on the end market, which is expected to bring a new challenge, according
to EnergyTrend, the green energy research division of TrendForce.
www.trendforce.com

2. EnergyTrend 12/01/2011
EnergyTrend: Taiwanese Manufacturers to Enter Solar System Market and Face New Challenge
First, the issue facing the Taiwanese manufacturers is fund accessibility. Due to that it requires a
considerable amount of fund to enter the large solar system bidding market, if manufacturers
are unable to acquire the support from the banks or investment firms, it will largely burden the
companies’ finance. In the mature markets such as North American and European markets,
obtaining the Power Purchase Agreement is the key to acquiring financial support. As for a
certain investment project of an anonymous company, the lack of Power Purchase Agreement
adds uncertainty to the management of the power plant. Hence, EnergyTrend believes that it
more risky to bid for that particular project than for other traditional projects.
Second, EnergyTrend is certain that Taiwanese manufacturers will be facing the “Local Content
Requirement” issue in the future. Considering the policies of European, Indian and United
States’ markets, the adoptions of the local products dominate the direction of the policies. Such
logic stems from the goal to increase domestic job opportunities; European Union’s “FIT
Premium,” United States’ “Buy America” and India’s “Local Content” are all in lines with the
logic and a crucial factor for the aforementioned countries to decide whether or not to subsidize
the related industries. Regions with great market potential, such as China, Southeast Asia, North
and South Africa, will be the next major battlefield for the Taiwanese solar companies, which
will also face the aforementioned issues.
www.trendforce.com

3. EnergyTrend 12/01/2011
EnergyTrend: Taiwanese Manufacturers to Enter Solar System Market and Face New Challenge
EnergyTrend believes that “Local Content Requirement” has become a pressing issue and will in turn affect
the capacity arrangement of the related manufacturers and their transnational management strategies and
fund accessibility. Taiwanese companies which have entered or are planning to enter the market should
predict the problems they will be tackling and come up with solutions beforehand.
As for this week’s spot prices, polysilicon, Si wafer, and solar cell price all remain on a downtrend. However,
except for the mono-Si wafer price, the prices in the PV supply chain started to alleviate. Lowest polysilicon
price remained at US$23/kg, while ASP fell to US$25.56/kg, a decrease of 1.12%. In terms of Si wafers,
lowest multi-Si wafer price remained at US$1.0/piece, while mono-Si wafer price was US$1.4/piece. This
week’s multi-Si wafer ASP dipped 1.86% to US$1.161/piece; mono-Si wafer ASP fell to US$1.609/piece, a
decrease of 2.48%. The lowest solar cell price was US$0.47/Watt, while ASP fell to $0.518/Watt, a 0.19%
decrease. In terms of module, PV module ASP fell by 1.19% to US$0.913/Watt. Looking towards the
future, EnergyTrend believes that as the inventory level lowers, the chance of the prices hitting rock
bottom is getting slimmer, and the price gap will continue to decrease.
www.trendforce.com