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Gross profits for solar panel suppliers have declined by an average of 25 percent in the last six months, according to the latest analysis from IMS Research, an independent research firm in the electronics industry.

The pricing of photovoltaic modules has been growing more competitive, and the study suggests that suppliers have not been able to reduce their costs as quickly as their prices.

Average prices for crystalline photovoltaic modules dropped from $1.80 in the first quarter to $1.40 in the second. But production costs are not dropping. The price of polysilicon, one of the key components in solar panel construction, has remained above $50 per kilogram.

Market analysts at IMS predict that average gross margins could fall below 20 percent by the third quarter, although they also expect a rebound in demand for PVs in the second half of the year, which will help suppliers’ profits recover.

Another survey released this month conducted by Solarbuzz, a solar market research company, forecasts increased sales in the second half of 2011 as well, citing the global price cuts as a boon to demand.