Polysilicon price rises to 9.4% in the 1st half of the year, says Greener

O price of polysilicon maintained the upward trend with a increase of 9.4% in the first half 2022. This is what a survey carried out by Greener.

O Strategic Study: Distributed Generation 2022 | Photovoltaic Market 1st Semester reported that in December 2021 the input cost had already seen an annual increase of 200%.

Polysilicon price reaches highest level since 2011

PV modules: import and nationalization costs

Another point highlighted by the research is that the international freight presented a reduction of around 30% compared to the end of 2021, positively impacting panel costs.

Import

The strong acceleration of equipment imports, especially in the first quarter of 2022 (growth of 128%), reflects the high expectations of the solar chain for 2022.

On the other hand, Greener emphasized that the significant increase in interest rates combined with Capex, which is still at high levels, proves to be challenging, contributing to a more moderate growth in demand for systems in the first half of the year.

Imported volume of modules: GD and GC

The first quarter of 2022 presented increase of 127% compared to the same period in 2021 (2,322 MW). Regulatory changes and strong market growth expectations for 2022 boosted these volumes.

Manufacturing of PV system components

Greener also indicated that the modules represent around 38% of the final price of a system, being an important component to be analyzed for market pricing.

“As the module’s main input is metallic silicon (raw material for polysilicon), representing 60% of the input cost structure, its price variation directly impacts the price of the panels,” added the consultancy.

Inverter component manufacturing

You semiconductors and electronic components represent the largest share of cost of photovoltaic inverters. Over the last year, these components have experienced an increase in demand due to the digitalization process that was accelerated by the pandemic.

This scenario culminated in global supply problems for these components and consequent increases in prices and freight, which could influence the cost of inverters.

Impact of commodity appreciation

The study also emphasized that after the strong increase in 2021 due to the reduced supply of the metal, the steel prices have been falling in recent months and begins to approach the level at the beginning of January 2021.

“The value of steel impacts the cost of manufacturing fixing structures, especially for ground-based photovoltaic plants,” they reported.