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5 Reasons why prices are rising on PV panels
and why you should Stock up now!

So why is this happening?

Industry leader Andy Cheng, Head of Product Procurement and Marketing for One Stop Warehouse, warns that he sees this trend for price rise confirmed by our suppliers. He said, "There are many reasons that prices in our sector are experiencing price pressure. Customers should prepare for a jump in price or buy before the trend continues if they want to maintain margins."

1) Material Price Rises

Firstly, the halt in production and logistics issues during 2020/21 due to covid has created a knock-on effect.  It has become a perfect storm of factors that are pressuring price problems in the solar industry. Trade media are reporting the impact across the scope our sector. From materials production such as polysilicon, glass, silver aluminium and copper which all go into  manufacture of products such as panels and inverters

For example:

• Polysilicon has increased by ~45% in 2021.  (Source PV magazine)

• Silver price has increased by over 75% from April 2020.  (Source TradingEconomics .com)
• PV glass output to be 20%-30% short of global demand in 2021.  (Source PV magazine)
• Aluminium price has risen by over 50% from April 2020.   (Source TradingEconomics .com)
• Copper price has increased by over 45% from April 2020.  (Source TradingEconomics .com)

2) Market demand for solar

Secondly, we can attribute a market shift to sustainable energy and PV, increasing global demand for PV, creating some levels of scarcity.  PV magazine also reports:

• Global PV demand set to hit 143.7 GW in 2021, up 15% compared with 2019 year. 

3) A drop in the Australian dollar

Thirdly, the Australian dollar peaked in mid-February and has been trending down towards April as our dollar becomes less competitive, creating pressure on import prices.

• Foreign Exchange Rate (AUD: USD) has dropped from 0.797 to 0.763 in the past month.

4) Freight & Shipping cost rises 

5) Research and development costs

Finally, the Launch of new technologies in the production of larger panels and wafers adds further cost to R&D and product development. These costs are eventually passed to the end-user over time.

PLUS the writing is on the wall

Other manufactures are warning us as well.

• Solar modules prices rose by up to 15% in China, Jinko’s vice president says:

• Australia braces for solar price hike as supply chain pressures start to bite

• Canadian Solar Warns Of Panel Price Increase

What can you do?

• Plan for the changes
• Organise your stock levels now; before the prices jump
• Please contact your account manager to secure your stock!

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