Panel Supply Chain 

Silver paste, which accounts for around 10% of solar cell costs, almost doubled in price in August 2020 compared to the first quarter, due to a global silver price rise. 

Several components in a PV module bill of materials have raised prices since mid-2020:

100% 

Copper, used in connection cables, and aluminum, used in module
frames, also increased by around 110% from low points last March. 

110% 

Silver Paste

Copper

EVA films and polyvinylidene fluoride (PVDF), - essential materials for module encapsulation, have also seen 200% price increases over the past 12 months.
 

200% 

EVA Film / PVDF

These extensive cost rises in so many links of the PV supply chain have resulted in rising prices for modules, pushing up the levelized cost of electricity at the project level. 
 

Polysilicon is highly monopolised by six domestic producers:

• Tongwei
• Xinte
• GCL
• Daqo
• East Hope
• Asia Silicon

Tongwei and GCL control the largest capacities and have strong abilities for price negotiation, and actually guide the polysilicon price. 

PV Magazine June 2022

Diagram BNP Paribas

UPSTREAM

DOWNSTREAM 

Ingot and wafer products are, in the same way, monopolised by Longi and Zhonghuan Semiconductor. 

Cost pressures will transfer downstream, if the upstream players are not willing to reduce their profit margins. Upstream suppliers have transferred cost pressure along the chain to the last manufacturer, the module maker.

PV Module Raw Material Focus

Market Intelligence  

Solar Panels

Page 1 of 1

SOLARPV-003 Ver 1.1 (June 23)

Confidential & Proprietary | 2023 CBRE Inc.