How does polysilicon affect solar panel pricing?

Either way, polysilicon’s role in determining solar panel pricing can’t be overstated. Spot market prices, which recently peaked at $45.47/kg, the highest since 2011, are higher than those locked into long-term contracts. This means that companies producing their own polysilicon are at an advantage with lower input costs.

Why have polysilicon prices been high?

Polysilicon prices have been high due to a surge in demand from the solar industry, which grew rapidly from a rounding error at the turn of the millennium to almost half of global polysilicon demand by the middle of the decade.

How much does polysilicon cost?

According to the PV market tracker EnergyTrend, the price of polysilicon at the end of September was nudging $ 30 per kilogram. This is up from an all-time low of $ 6. 80 per kilogram in June 2020, a jump of more than 338 percent in just 16 months.

Is polysilicon the solution to solar PV?

However, creating PV modules relies heavily on specific materials whose production rates are affected by prices and supply. Polysilicon is one of those specific materials, and if solar PV is going to be the solution, it will be critically important.

Why did the polysilicon market lose a long-term supply contract?

Both closed long-term supply contracts with customers who financed the expansion by making high prepayments. These contracts became a problem when the polysilicon spot price began to undercut the average contract price in May 2011.

What happened to polysilicon prices in China?

Polysilicon prices in China fell below $10/kg following the May 2018 announcements of changes to the Chinese government’s policies on support for PV projects. In mid-2020, Covid-related uncertainty pushed mono-quality polysilicon spot prices down to record lows of just over $7/kg. Uncompetitive producers were affected.