The solar industry in Australia is bracing for a spike in solar prices in the coming months. According to Al Jazeera, “solar module prices have risen 18% since the start of the 2021 after falling by 90% over the previous decade.” Australian solar retailers now expect that rising costs will be reflected in the prices of residential and commercial solar systems.
Unfortunately, this comes at a time when it is increasingly vital for Australia to be pushing for a shift to solar energy and finding more sustainable ways to generate power for consumption.
Rising prices of raw materials and shipping costs
The sharp increase in raw material prices has made it difficult to be absorbed by the manufacturers in the production process.
According to PV Magazine, JinkoSolar stated that the hike in PV prices is caused by the shortage of supply of raw materials such as polysilicon, glass and silver. On top of that, the lack of manufacturing capacity to meet the strong demands during these times, puts pressures on the entire supply chain. The solar industry also faces an additional setback, as shipping capacity is impacted during the COVID-19 pandemic, resulting in higher freight prices.
Expectation of solar prices in Australia
In an interview with Renew Economy, Rami Fedda, the co-founder of Solar Juice, mentions that Australia needs to prepare for at least 10% hike in solar panel prices, as the changes in global prices starts to hit locally. What that means is that, customers can expect to see costs increasing for solar panels, solar inverters and the components that make up the residential and commercial solar systems.
Implications for customers
A. Higher Solar Prices
Australian homes and businesses may start seeing an increase in prices of solar systems. Customers should talk to their local solar installers to get a good indication on when they can expect prices to change and how this impacts their solar quotes.
B. Rise of Cheap Installation
Reputable installers are highly committed in achieving customer satisfaction through installation of high-quality solar systems. We ensure that every single component we use, no matter how large or small, is sourced from highly reputable manufacturers.
However, there are irresponsible installers who may attempt to absorb the rising PV module costs by substituting the solar system components with cheaper materials and labour. This poses significant health & safety risks for consumers and their homes. We encourage customers to talk to their installers about cost concerns and customising a system that has quality, safety and meets their budget.
Is solar still worth it?
Definitely. While the initial price of investing in solar is increasing, customers can still enjoy savings in the form of lower energy bills, from generating and using solar energy throughout the day. This is even more so for customers with solar batteries, as they can use solar power at night when energy usage is at its peak. We encourage consumers to not apply a “wait-and-see” approach when it comes to getting solar, as the increasing costs of solar materials will likely continue for years.
Contact Us
Head Office
Unit 21/6 Gladstone Rd, Castle Hill NSW 2154
Victoria Office
34 Chartwell Drive, Wantirna Victoria 3152
Phone Inquiry
1800 338 809
Email Us
info@rksolar.net
Contact Us
Head Office
Unit 21/6 Gladstone Rd, Castle Hill NSW 2154
Victoria Office
34 Chartwell Drive, Wantirna Victoria 3152
Phone Inquiry
1800 338 809
Email Us
info@rksolar.net