The lack of demand elasticity in the third quarter has meant PV module prices have continued to fall, impacting gross margins. The latest victim of plummeting profits is Canadian Solar, which has revised gross margin guidance be in the range of 2% to 5%, compared to prior guidance of 9% to 12% for the quarter.
However, Canadian Solar reiterated previous module shipment guidance, one of the few forecasting growth in the quarter. The company noted that shipments would be in line with prior guidance of 350MW to 360MW despite broader weakness experienced in the solar market worldwide.
The company also noted that demand was weaker than expected in the earlier part of the third quarter, echoing reports that have highlighted customers were delaying purchases as prices continued to tumble. Also noted was the challenges in obtaining project finance for commercial and utility-scale projects as the re-emergence of tight credit took hold.