Reuters SolarEdge Technologies said it was not looking to cut prices for its solar inverters till the end of the year despite a dip in nearterm demand from Europe, betting on cheaper panels to increase affordability for consumers.

Energy costs in Europe, the company39;s largest market, have spiraled since Russia invaded Ukraine, leaving households with high electricity bills and straining power grids across the region.

This drove a sharp acceleration in installation of solar power units across the continent to avert an energy shortage.

But prices have since come down, thanks to members of the European Union pouring hundreds of billions of euros into tax cuts, handouts and subsidies to tackle the crisis and analysts feared that demand for renewable energy would take a hit.

However, a drop in prices of the most expensive part of a residential solar installation unit, solar panels, is proving to be a boon for consumers.

Over the past 90 days since midMay module prices have fallen by about 25. This is the steepest decline, in such a short period of time, in more than a decade, Raymond James analyst Pavel Molchanov said.

Solar companies are also betting on longterm demand for solar inverters in Europe, as solar power is particularly suited to cope with heat waves, which have become hotter and more frequent in the continent.

Demand for photovoltaic power systems in Germany, the largest solar market in Europe, is expected to grow at a doubledigit rate this year, the…