1：Price of polysilicon and solar wafers remain high

Price of both polysilicon and solar wafers have remained high for three consecutive quarters, implying that demand of solar applications is not being affected much by the upcoming expiration of a government subsidy program in Spain, according to industry sources.

The price of polysilicon has averaged US$400-450 per kilogram recently. Despite prices surging to US$515 earlier this year, in June a decline to US$450 was seen and since prices have been relatively stable, said the sources. They noted that buyers are seeing no difficulty finding a supplier if they are able to offer a higher price. Although it seems that tight supply is easing, the sources remarked that present prices are still double contract price.% t+ A* o0

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The price of a 6-inch multi-crystalline solar wafer averages about US$11-12, up from US$9. In contrast to a strong volatility as seen in polysilicon pricing, the price of solar wafers has been relatively stable throughout 2008, the sources commented./ a: z% A7 s& z& X

Some industry players attributed the strong pricing of key materials to a prolonged subsidy program in Spain. Since the Spain government will still grant subsidies for module makers until late September, demand has thus been supported. They added that a clear demand trend after the completion of the program is still yet to be seen.

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2：Solar cell contract prices to be flat on year in 2009

As most Taiwan-based solar cell makers have settled their contract prices at a recent solar energy show at Spain, they observed that anticipated strong demand has sustained a flat average selling price (ASP) trend. Power efficiency has again drawn attention, being an important indicator on price bargaining.4 Z" g( u* R8 S0

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Contract prices for solar cells will average US$3 per watt in 2009, according to industry sources. The sources noted that power conversion rates played a critical role on quotes. For those solar cells that deliver a power conversion rate above 15%, per watt ASP for a one-year contract will average US$3-3.20. The price goes down to US$3 if the contract duration lasts for five years and buyers pay deposits, they added.#

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Some solar cell makers have priced their products for long-term contracts at US$3 as well, the sources said. But the attractive quotes are not the only thing customers are looking for, as timely delivery and quality are also important.

Despite some industry players previously raising concerns about a possible 5-10% on-year price drop in 2009 due to the ending of Spain's subsidy program in September, the flat price trend signified that demand is still strong, some industry watchers commented." c+ U8 ^( @& m6 O# B+ d

3：SunPower CEO sees 10-20 pct price drop next year

VALENCIA, Sept 3 (Reuters) - SunPower Corp (SPWR.O: Quote, Profile, Research, Stock Buzz), a leading U.S. maker of photovoltaic solar panels, expects its sales prices to drop by between 10 and 20 percent next year, Chief Executive Officer Thomas Werner said on Wednesday.0 {9 ?8 B. u( W3 w

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"SunPower tends to be most bearish next year -- we like to think we're paranoid -- so we think of a 10-20 percent price decrease," Werner told Reuters on the sidelines of a solar power conference in the eastern Spanish city of Valencia.