Rising Raw Material Costs Set Stage for Higher Solar Module Prices in Q1 2026

Lahore (News Desk)– The global solar industry is facing renewed cost pressures as rising raw material prices are expected to drive up solar module costs in the first quarter of 2026. Experts say inflation across key inputs, including but not limited to polysilicon, is reshaping pricing across the photovoltaic (PV) supply chain.

Polysilicon, a critical component in solar modules, is experiencing price increases due to tight capacity and full utilization of production facilities. Market data indicates that every US$1 per kilogram rise in polysilicon translates to a 2.5–3.5% increase in module costs, making it one of the most significant cost factors.

Other materials are also seeing sharp price rises. The cost of solar glass has nearly doubled, EVA (ethylene vinyl acetate) prices have risen about 40%, and silver paste, aluminum frames, and backsheets continue to climb. Collectively, these trends are applying sustained pressure on solar manufacturing economics.

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Industry analysts note that these increases are not short-term fluctuations but reflect a structural shift after years of relative pricing stability. Rising raw material costs, combined with high global demand for solar installations and constrained high-efficiency module supply, leave manufacturers little room to absorb costs without passing them to consumers.

For price-sensitive markets like Pakistan and other emerging economies, the trend underscores the need for careful procurement planning. Delays in purchasing may expose projects to higher costs as raw material inflation feeds directly into module prices.

As 2026 begins, the outlook is clear: escalating raw material costs are likely to push solar module prices higher in Q1 and beyond, emphasizing the importance of proactive planning for project economics and timelines.