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."
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
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:
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.
4) Freight & Shipping cost rises
The per unit cost of shipping panels had quadrupled from a steady recent average of around half a US cent per watt peak, to 2 US cents per watt peak in 2021.
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.
- 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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