Why The Prices of Solar Systems are Increasing?

Why the prices of solar systems are increasing?

Solar system prices have increased by more than 25% in the last four months. It is said that prices are going to increase even in the future. Following are a few of the major reasons for this price hike –

1. Prices of solar Cells have Increased

The prices of solar Cells have increased a lot. As per the historical data for four months, the cost of polycrystalline solar cells has increased by more than 49%. On the other hand, the prices of monocrystalline solar cells have increased by around 8% to 10%.

Chinese solar cell manufacturer Zhonghuan semiconductor has released the solar cell rates for the coming month and it can be clearly seen that the prices are going to increase.

Any solar panel is made up of seven different materials like aluminum frame, tempered glass, encapsulation sheet, Solar cell, back sheet, junction box, and copper wire. Prices of all seven materials have increased by at least 15%.

2. Prices of metal have increased

Though the prices of metal have increased in India, it is still on the lower end as compared to the international market. Hence majorly the metal is getting exported from India to other countries. This is the major reason why the metal prices are on a higher side even after weak requirements in the country. Solar panels have an aluminum frame while the solar mounting structure is made of various metals. Even the wires using in the solar system out of copper or aluminum . As the metal prices are high, the whole solar project cost is going up.

3. Covid pandemic situation

Due to the covid pandemic situation , raw material availability is also an issue. This is adding fuel to the current scenario. We Normally import raw materials from other countries. As the shipping line charges have increased, the cost of raw material is also increasing. Price increase in the fossil fuel like diesel petrol Etc this is why the prices of solar systems are increases due to the shipping line charges.

4. Huge Demand for Renewable Energy Products.

There is a huge demand for renewable energy products in China . The Government of China has issued multiple tenders for renewable energy. hence manufactured material is directly getting consumed for these government projects. As less material is leftover for the Indian market, the prices are increasing. Looking at the overall situation it is very hard to see any price drop in the coming future. Let us know what is your view on this situation? Do you think that the prices of solar systems are going to fall? What are your justifications for this? Comment to this post and let everyone gets enlightened. This is why the Prices of Solar systems are increases? Contact Chirayu Power

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