This Is How PV Bill of Materials Impacts Module Production in 2024: Part 1

Materials in a PV Bill of Materials (BOM) can significantly affect the efficiency, cost, and durability of modules. In this article, we delve into the PV BOM and uncover how the eight crucial components impacts module production in 2024.
 

1. Electroplated diamond wires

Electroplated diamond wires have revolutionized wafer slicing in the PV industry. These wires, coated with diamond particles, provide a precise and efficient method for cutting silicon ingots into wafers. The key benefit of using electroplated diamond wires lies in their ability to produce thinner wafers with minimal kerf loss, which translates to higher material yield and lower costs. Additionally, tungsten diamond wires, with their finer diameters, effectively reduce silicon material loss during the slicing process. Their usage in the industry is steadily increasing year by year.

However, the supply and price of metals like steel and nickel, as well as diamond particles, play a significant role in determining the cost of electroplated diamond wires. Fluctuations in their availability and price, subject to industrial demand, geopolitical events, production rates, and mining output, can have broader implications for module manufacturing and the overall cost structure of the PV industry.
 

2. Silver paste

Silver paste, essential for solar cell metallization, significantly impacts module production costs. In 2024, the price of silver neared a three-year high amid record industrial demand and short supply. Despite its high cost, silver remains the preferred choice due to its excellent conductivity and reflectivity properties. Manufacturers continue to grapple with the challenge of reducing silver consumption without compromising efficiency.

With the usage of silver in PV modules potentially reaching 232 million ounces this year, understanding the supply-demand dynamics and price trends of silver is crucial for both cell and module manufacturers. The shortage-driven high prices can lead to increased production costs, forcing manufacturers to raise modules prices or reduce profit margins. For example, a 10% increase in silver prices can results in 1% increase in overall module production costs.



 

3. PV glass

PV glass serves as the protective front layer of solar modules, shielding the delicate cells from environmental factors while allowing maximum light transmission. Generally, there two types of PV glass, ultra-white patterned glass, and ultra-white float glass. The former is mainly used for c-Si cells and modules, and the latter for a-Si thin-film ones.

PV glass production relies on raw materials like low-iron silica sand, soda ash, dolomite, limestone, sodium pyroantimonate, and significant energy resources. Low-iron silica sand ensures high transparency for better light transmission, while soda ash lowers melting points, reducing energy costs. Dolomite and limestone enhance structural integrity and durability, and sodium pyroantimonate improves optical properties. The supply and demand dynamics of these materials directly affect production costs.



 

4. Encapsulant

Encapsulants, such as EVA (ethylene-vinyl acetate) and POE (polyolefin elastomer), are materials used to protect cells from moisture, dirt, and mechanical damage, thereby ensuring the longevity and performance of the modules.

Understanding the production plans of suppliers and the demand of encapsulants and the resins used in their production is crucial for module manufacturers. For instance, the recent rise of n-type modules, which require high-performance encapsulants like POE due to their superior physical properties and anti-potential induced degradation (PID) capabilities, has led to increased demand for POE resin.

Additionally, encapsulant manufacturers are also relocating production outside China to mitigate geopolitical risks, which introduces new supply chain complexities and potential disruptions.

Understanding the supply-demand dynamics and price trends of key PV BOM components is essential for module production efficiency and cost management in 2024. Stay tuned for Part 2, where we will delve into the remaining four components: frame, backsheet, junction box, and ribbon. These elements are equally vital to the performance and durability of PV modules, and we'll uncover how their supply-demand trends shape the future of PV technology.

Download a sample of our comprehensive BOM market report for more detailed insights.

For exclusive access to full reports and regular updates, contact us at [email protected] for subscription!