The market research company's analysis of cost and sensitivity shows that the CIGS thin-film module will experience the largest downward trend from 2012 to 2017, with a reduction of up to $0.14 per watt, resulting in a cost reduction of $0.64 per watt.

According to Ed Cahill, partner of Lux Market Research and the lead author of the survey report, “Since manufacturers are under pressure from competitors, customers and policy makers to demand further price reductions, Manufacturers need to reduce costs to survive and grow in the future conditions of the buyer's market."

The report also shows that CdTe thin-film components will likely maintain its position as the cheapest solar technology by 2017 at a price of $0.48 per watt (relative to CIGS's $0.67 per watt). However, Lux Market Research stated that the ever-increasing component efficiency will remain a key factor in reducing costs across the industry. According to the company's research, the cost per watt of polysilicon can be reduced by up to $0.07, while CIGS can be reduced by $0.21 by increasing the efficiency of the module.