Rising raw material costs signal solar module price increases in Q1 2026

Lahore
The global solar industry is entering a phase of renewed cost pressure as rising raw material prices emerge as a key driver behind expected solar module price increases in Q1 2026. Industry experts indicate that inflation across core raw materials, not limited to polysilicon alone, is reshaping pricing dynamics across the photovoltaic (PV) value chain.
Polysilicon, a critical component in solar module manufacturing, is witnessing upward price movement as capacity tightens and production facilities operate at full utilization. Market data shows that for every US$1 per kilogram increase in polysilicon prices, module costs rise by approximately 2.5–3.5 percent, making it one of the most influential cost variables in the sector.
However, polysilicon is only part of a broader raw material inflation trend. The prices of solar glass, another essential input, have nearly doubled, while EVA (ethylene vinyl acetate) costs have increased by around 40 percent.

At the same time, prices of silver paste, aluminum frames, and backsheets continue to rise, collectively adding sustained pressure on manufacturing economics. An industry expert from LONGi Solar Pakistan commented on the global surge in overall raw material prices, which is expected to eventually lead to an increase in solar prices for the first quarter of 2026 across Pakistan.
“Solar module pricing is being impacted by a broad-based increase in raw material costs, not just polysilicon,” said Osman Mohammad Maud, Head of LONGi Pakistan & Afghanistan Branch, and Head of Technical Operations for the Central Asia Region. “Rising polysilicon prices, coupled with escalating costs of glass, EVA, silver paste, aluminum frames, and other inputs, are creating a cost environment that points toward higher module prices in Q1 2026.”
Maud added that the market is undergoing a structural shift after years of relative pricing stability. “The industry is moving away from a prolonged buyer’s market. Raw material inflation is now a core driver of pricing trends, and stakeholders should be aware that these pressures are not short-term fluctuations but part of a broader market recalibration.”
Industry analysts note that rising silicone-related inputs and auxiliary material costs are reinforcing expectations of near-term price increases. With global demand for solar installations continuing to grow and high-efficiency module supply facing constraints, manufacturers have limited room to absorb higher input costs without passing them downstream.
For price-sensitive markets such as Pakistan and other emerging economies, these trends carry added significance. Procurement strategies that rely on delayed purchasing cycles may be increasingly exposed to cost volatility as raw material inflation feeds into module pricing.
As the solar sector prepares for 2026, the outlook is clear: escalating raw material costs across the supply chain are setting the foundation for higher module prices in Q1 and beyond. Stakeholders who recognize and plan for these cost drivers early will be better positioned to manage project economics and timelines in a tightening market.