Solarbuzz report expects Tier-1 polysilicon, wafer producers to turn a profit in 2013

Facebook
Twitter
LinkedIn
Reddit
Email

According to Solarbuzz’s “Polysilicon and Wafer Supply Chain Quarterly Report,” polysilicon prices are expected to fall 48% while wafer prices drop 56% year-over-year in 2012; results which have so far led to only 12 Chinese PV polysilicon manufactures still producing, and of those, more than half running at reduced utilization rates.

The report notes that industry-wide, wafering plant utilization is anticipated to average only 53% this year, but as the prices come close to current cash costs of tier 1 makers, price declines are expected to slow to less than 7% per year. Solarbuzz predicts that average 2013 polysilicon prices will be US$23/KG and wafer prices of US$0.24/W with top tier makers still able to make positive margins.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“Although the 30% plus net profit margins of the not-so-distant past are unlikely to be seen again by any PV polysilicon makers in the next few years, leading producers are targeting total costs of less than US$20 per kilogram in 2013, which may enable modest profitability,” stated Charles Annis, vice president at NPD Solarbuzz.

As polysilicon cost goes down, so will the cost of PV wafers. Solarbuzz notes that wafer makers are perpetuating the drop of processing costs with holistic approaches to reducing slurry consumption, increasing recycling, minimizing kerf loss, decreasing electricity consumption, increasing conversion efficiency and more productivity enhancements.

“Many of the less cost-competitive PV industry participants will not survive the new low-priced environment, but even at prices US$0.25/W, top-tier wafer makers, particularly those with low-cost internal polysilicon supply, are targeting 12% or better margins,” concluded Annis.

Read Next

October 13, 2025
France’s Engie and the UAE’s Masdar have been chosen to jointly develop a 1.5GW PV power plant near Abu Dhabi.
Premium
October 13, 2025
Brett Beattie of Castillo Engineering looks at some of the key land grading work that can make multimillion-dollar differences to projects.
October 13, 2025
Korean chemical production firm OCI Holdings has acquired a 65% stake in a Vietnamese solar wafer production plant, intending to export solar wafers to the US.
October 13, 2025
The world is on pace to exceed 3TW of cumulative solar installations by the end of the year, according to a report from DNV.
October 13, 2025
The Trump administration has cancelled the 6.2GW Esmeralda 7 solar project in Nevada – once touted as one of the largest in the world.
October 13, 2025
Two Chinese state-owned energy enterprises have signed cooperation agreements on PV and wind power projects with Saudi companies, with the total contract value exceeding RMB30 billion (US$4.2 billion). 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK