The price of panels is expected to continue to skyrocket due to the energy crisis in China

Despite the partial control of the COVID-19 pandemic in many countries worldwide, the economic and social recovery is just beginning, and the situation of solar panel prices continues to rise steadily due to increased production costs, rising transportation costs, and the energy industry crisis.

According to observations from businesses in the solar energy sector, over 80% of the cost of solar panels depends on the raw material costs, including polysilicon, PV glass, EVA, silver, aluminum, etc. In the Chinese market, which supplies the majority of solar panels to the world, including Vietnam, the price of polysilicon has increased by 30% from 200 RMB/kg to 260 RMB/kg; toughened PV glass has increased from 22 – 25 RMB/m2 to 35 RMB/m2; the price of EVA plastic has also increased by 45% in the third quarter of 2021 until mid-September.

Under pressure from emission reduction targets and the sharp increase in coal prices, China’s electricity supply is becoming increasingly strained. China’s massive manufacturing industry is severely affected by power shortages. From aluminum smelters, steel plants, cement factories to solar panel manufacturing plants, all have limited operations, with about 60% of the factory capacity being cut. This has contributed to widespread shortages of solar panels, causing disruptions in the supply chain.

Moreover, the COVID-19 pandemic has not been fully controlled, and the import-export process and cargo transportation still face many difficulties, slowing down the supply chain, extending customs clearance times, and increasing logistics costs. All these factors contribute to further raising the prices of solar panels.

Given the forecast of an unprecedented increase in solar panel prices, if you, as a customer or partner, have upcoming projects, it is advisable to plan equipment and material procurement and place orders now to secure the best prices.

For additional information or assistance, please contact our sales staff supporting business in your area or call the hotline 1800 6567 (free of charge) for 24/7 consultancy.