“As always in solar energy, those who wait are the ones who lose,” says Otovo CEO



Andreas Thorsheim, CEO of Norwegian residential solar specialist Otovo, spoke recently pv magazine due to the high inventory level of solar modules in Europe and the drop in panel prices. He said there will be a strong buyer’s market this fall, noting that the latest boat modules are the cheapest.

European stocks currently hold about 40 GW of Chinese-made solar panels worth about 7 billion euros ($7.8 billion), according to Norwegian consultancy Rystad Energy.

“The value chain of solar energy is exceptional in its ability to react to crises,” said Norwegian residential solar expert Otovo Andreas Thorsheim. pv magazine. “Just a year ago, we were in dire need of inverters and modules, and fortunately, manufacturers increased capacity with a tremendous increase that is now benefiting solar buyers.”

According to Thorsheim, in the 13 markets where Otovo operates, equipment prices have fallen by 9-15% this year, which indicates a decrease in installers’ order backlog and an increase in inventories.

“Modules are always sold and installation companies are usually resourceful about getting rid of equipment,” he added. “But of course, if you hoard equipment purchased in the first half of 2023 until the end of summer at the same time as module and inverter prices fall, the risk increases… My view is that residential, commercial and government buyers can expect the lowest wattage prices since before the pandemic and energy crises. This fall will be a strong buyer’s market.”

Thorsheim said consumers are a little more on the fence.

“But I’m not sure it makes sense,” he said. “As always in solar energy, those who wait are the ones who lose. The decentralized value chain will always get some price signals a little wrong and sometimes oversupply or undersupply. But then again, that’s only natural when it’s moving at these crazy speeds, and over time it’s one of the factors that will make solar even more competitive compared to conventional energy generation.”

He pointed out that Otovo generally has a “zero inventory strategy”.

“During the 2021-22 energy crisis, we made strategic acquisitions to remove the worst bottlenecks, but fortunately we have reached them,” he said. “At the end of the second quarter, we had less than 300,000 euros in stock with an annual turnover of 200 million euros. Our view is that costs are coming down in overhead, equipment and installation, and we’re at the forefront of those costs without working capital or inventory.”

Thorsheim said the company plans to focus its whitelist on fewer module, inverter and storage manufacturers to leverage its ability to influence purchases in the installer ecosystem and reduce the complexity of offering many different models.

“The drop in prices at the consumer end of the market, as seen on the Otovo platform, is monotonous and downward and uniform throughout Europe. Norway is down, France is down, the UK is down, Italy is down… I could go on and on,” he stated. “The latest modules from the boat are the cheapest. Of course you should get those new panels.”

David is a passionate writer and researcher who specializes in solar energy. He has a strong background in engineering and environmental science, which gives him a deep understanding of the science behind solar power and its benefits. David writes about the latest developments in solar technology and provides practical advice for homeowners and businesses who are interested in switching to solar.

Read More

Related Articles


Please enter your comment!
Please enter your name here