Photovoltaic kits with prices below the market

O solar energy market has experienced a significant drop in prices, especially in photovoltaic modules, as has been reported numerous times by Canal Solar.  

However, an action that is becoming common is the fact that some distributors sell photovoltaic kits to integrators with prices much lower than those charged by the market. 

The report found that, currently, there are cases in which the price of module, inverter and other equipment practiced by the market presents a difference of more than 25%. 

The practice of purchasing equipment at prices below market prices may even seem advantageous at first glance for many integrators. However, in reality, what happens is that it hides a series of risks. 

This is because, according to sources heard by the Canal Solar, solar equipment distributors often operate on thin profit margins, which prevents them from offering deep discounts to their customers.  

Roberto Caurim, CEO of Bluesun, explains that a distributor only sells equipment priced below market in two circumstances: when you have financial problems and you need to raise cash quickly or the products are of dubious quality. 

According to the professional, when a company sells modules, inverters and other products at very low prices, it is extremely important that the integrator connects the “yellow signal”.

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“When a distributor has prices much lower than the market as a whole, be suspicious! This most likely happens because the company is experiencing financial problems and needs to raise cash to pay its debts”, he guaranteed. 

Furthermore, Caurim highlights that this equipment may also be negative tolerance near to Inmetro (National Institute of Metrology, Standardization and Industrial Quality). In other words, they will not deliver what they promise to the end customer.

“There is no way, in a competitive market like solar, for a distributor to sell photovoltaic kits with prices 10% to 15% lower. The difference in product prices between companies does not usually exceed 5%”, she highlighted.

Leandro Martins, CEO of Ecori, also highlights that the sector has already observed a significant difference between quality photovoltaic generators and those of low quality or even counterfeit in relation to the technical sheet presented for the product. 

Yes, Rodrigo Furlan, director of Serrana Solar, points out that the practice of below-market prices, unfortunately, occurs in almost all segments, which “facilitates understanding and reinforces the importance of a careful analysis by the Integrator when purchasing the photovoltaic kit from the distributor for his client, since it is the image of the integrator itself in its region of operation that is at risk”, he said.

“For our segment, we can mention numerous risks: financial health of the distributor, quality of the solar imported by the distributor (considering that solar s are not all the same), origin of the solar being from an assembler and not a manufacturer, fake power, lack of stock from the distributor itself to make purchases and future delivery with shipping times longer than 30 days, among other factors that can harm your own company and image as an Integrator in the eyes of your customers”, added Furlan.

Vitor Pedreira, supply superintendent at Amara NZero Brasil, also highlights that in the Brazilian solar energy market there is a lot of equipment being sold at a very cheap cost, but which does not fulfill what is promised in the datasheet: modules with power below nominal, inverters with a high failure rate, among other problems. 

“By purchasing this equipment, the integrator is not only harming the expected energy generation by the end customer of the system, but also at the risk of being a co-participant in a violation provided for by the consumer protection code (Right to Information – art. 6, item III)”, he highlights. 

Still on the topic, Martins highlights, in turn, that “often, when we receive quotes from competitors with very discrepant prices, we notice that this is generally an indication that the modules used by competitors are of false power and of extremely inferior quality to the modules that we work.” 

This price discrepancy, according to Ecori's CEO, often points to the use of fake power, which in addition to false power, uses very low quality materials, from glass, junction boxes, connectors, to the EVA itself used and sealing silicone. 

“When we analyze in detail, in more than 90% of cases, the cheapest modules are of much lower quality. Currently, around 70% of modules sold in Brazil have false power. This not only harms the sector, but also puts facilities and people's safety at risk. It is a serious problem that needs to be addressed urgently to guarantee the integrity and reliability of photovoltaic installations in the country”, he highlighted.

In addition to the issue of equipment, Pedreira also mentions that every distributor has operational costs, such as technical , logistics and istrative structure, but that some of them do not make adequate investments in these sectors.

“On the one hand it reduces costs, but on the other hand they will not be able to the integrator precisely at the most critical moments: when he needs some post-sales ”, highlighted the superintendent.  

Among the issues that include after-sales service, Caurim highlights the lack of equipment guarantee for end consumers. According to him, the integrator needs to understand that the distributor that presents financial problemsHe will certainly no longer be here in the medium term to be able to guarantee it. 

“As most suppliers are not in Brazil, the distributor is responsible for guaranteeing the equipment. Without the distributor, the integrator will not have a guarantee to on to its customers”, she commented. 

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