In recent months, the price of polysilicon, a key material used in the manufacturing of solar panels, has been experiencing unprecedented levels of volatility, which is threatening the capacity of the solar power industry and the investments made in it.
Polysilicon prices have been on the rise since mid-2020, driven by strong demand for solar panels, as governments and businesses look to increase their use of renewable energy sources. However, this rise has been followed by a sharp drop in prices in recent weeks, causing instability in the market.
Experts warn that the current situation could lead to delays and cancellations of planned solar projects, as well as financial losses for companies involved in the solar power industry. The increased volatility is also making it difficult for companies to plan and make long-term investments in the sector.
The situation is further complicated by the fact that polysilicon prices are highly dependent on the policies and regulations of the major producing countries, such as China and the United States, as well as on supply chain disruptions caused by the COVID-19 pandemic.
Industry leaders are calling for more stability and predictability in the market, as well as greater investment in research and development to find alternative materials and technologies that can reduce the industry’s reliance on polysilicon.
In the meantime, the solar power industry is facing a challenging period, as it seeks to navigate the unprecedented price volatility of polysilicon, which is threatening its capacity and investments.