The coronavirus pandemic has triggered a spike in prices on almost all kinds of goods. Notably, a possible rollback of green energy became one of the consequences of the unplanned price hikes. For the first time in 10 years, the production of solar panels turned out to be unprofitable.
Polysilicon is the dominant material used to produce solar panels. Unfortunately, the COVID-19 pandemic prompted a sharp rise in its price. The cost of polysilicon has already increased 4 times from $6 to $26 a kilogram and is likely to grow even more. The year 2021 could become the first year of negative growth in global solar installations in 17 years.
Roth Capital Partners experts suggest that commodity prices will be increasing until the end of 2022. If the cost of polysilicon continues to rise, it may challenge the implementation of large-scale solar energy projects in India, the United States, and other countries. According to the Solarzoom industry portal, growing prices might force state-owned power giants in China to push projects into next year.
"At present, none of the downstream companies are profitable and all of them are reducing production," Canadian Solar Vice President Xiong Haibo said.
