(Bloomberg) The cost of solar power is set to rise following energy shortages in China that have caused a 300% jump in prices of silicon metal used in solar equipment manufacturing.
Fig: Solar Grade Polysilicon Prices
Analysts say that polysilicon makers are bound to increase the prices of solar panels in a global supply chain that is already suffering from China-US geopolitics.
Solar polysilicon prices surged by 13% to $32.62 per kilo on Wednesday, the highest since 2011. Prices had been ranging between $1 and $2.5 per kilo since 2003 before the recent hike.
China is the largest global solar producer using coal-powered generators. Analysts expect solar installations and related projects to be suppressed by the interruptions this year.
CSI 300 is up +0.67%, USDCNY is down -0.14%.
