The global solar industry is facing renewed cost pressures as raw material prices climb, signaling higher solar module costs in early 2026. Analysts point out that inflation is affecting not only polysilicon, a core component, but also other essential materials, reshaping pricing across the photovoltaic value chain.
Polysilicon prices have risen as production capacity tightens and factories operate at maximum output. Data indicates that each US$1 per kilogram increase in polysilicon pushes module costs up by roughly 2.5–3.5 percent, making it a major driver of overall pricing.
However, the price surge extends beyond polysilicon. Solar glass costs have nearly doubled, while ethylene vinyl acetate (EVA) prices have climbed by around 40 percent. Silver paste, aluminum frames, and backsheets are also becoming more expensive, collectively exerting sustained pressure on manufacturers’ margins.
Industry observers say these cost increases are likely to affect module prices globally in the first quarter of 2026. Experts note that the sector is moving away from years of relative price stability, with raw material inflation now shaping market trends.
Rising costs for both core and auxiliary materials are limiting manufacturers’ ability to absorb expenses without passing them on to buyers. With global demand for solar installations growing and high-efficiency module supply constrained, price increases appear increasingly likely.
Emerging markets like Pakistan may feel these pressures more acutely. Delays in procurement could expose buyers to higher costs as raw material inflation feeds into final module pricing.
Looking ahead, stakeholders in the solar sector are advised to anticipate rising costs. Early planning around procurement and project economics could help navigate the tightening market as the first quarter of 2026 approaches.
