While tier-one China-based solar module makers quote EUR0.45/watt in the Europe market and US$0.6/watt in the US market, a few tier-two China-based fellow makers are dumping solar modules at EUR0.34/watt in the Europe market, decreasing by 10% compared to the third quarter, and causing concern about triggering a price war, according to Taiwan-based makers in the industry.

In the third quarter, Taiwan-based solar cell makers already set the tone of their business by stating that they would rather not take orders if prices were too low. Currently, solar cell pricing is around US$0.32-0.34/watt, and some Taiwan-based firms have been rejecting orders with quotes lower than US$0.35-0.36/watt.

China's solar supply chain is facing anti-dumping and anti-subsidy investigation by the EU. The investigation has yet to set a retroactive period for punishments or demand importers pay security deposits, causing China-based solar firms to massively dump inventories into the EU market. This eroded profits for China-based vertically integrated large-size solar firms in the third quarter. Even Yingli Solar, a firm that has been reporting relatively stable sales, has reported increasing net losses.