The European solar market has recently experienced a significant price increase, with solar panel costs rising for the first time in months. According to Bart Wansink, CEO of Search4Solar—a leading European platform for buying and selling solar panels, inverters, and batteries—the surge marks a turning point that could lead to even higher prices in the near future.
Price Jump of Over 20%
Search4Solar received updated pricing this week from 10 undisclosed manufacturers, revealing that prices for tunnel oxide passivated contact (TOPCon) modules for residential and commercial projects have increased by more than 20%. Prices for these advanced modules are now around €0.10 ($0.10) per watt, up from approximately €0.07 per watt in October 2024. In addition, all-black solar panels have reached €0.12 per watt.
This shift reflects the growing demand for higher-efficiency panels, driven by advances in technology and increasing pressure from the market.
PERC Panels Become Scarcer
While newer technologies like n-type TOPCon or heterojunction (HJT) panels are becoming more popular, passivated emitter rear cell (PERC) panels—particularly those for 400W units—are still relatively affordable, priced between €0.077 and €0.08 per watt. However, PERC panels are quickly becoming scarce, as manufacturers shift their focus to more efficient and advanced solar technologies. Once the existing stock of PERC panels runs out, they are expected to largely disappear from the market, potentially causing prices for alternative panels to rise even higher.
More Increases Expected After Chinese New Year
The recent price surge is not expected to be a one-time occurrence. Search4Solar anticipates further price hikes following the Chinese New Year. As Bart Wansink explains, “Manufacturers are no longer willing to produce below cost, increasing market pressure.” Even though some suppliers are still offering solar panels at €0.08 per watt, this price is set to increase by 15% starting February 1, 2025.
Underlying Factors: Polysilicon Shortages and Market Adjustments
The rise in solar panel prices can also be attributed to a reduction in polysilicon production. Polysilicon is a key material in solar panel manufacturing, and major producers have recently scaled back their output. While the immediate impact of this shortage is not yet fully clear, experts from OPIS have suggested that this may be contributing to upward pricing pressure, especially as supply chains adjust.
Despite these shifts, oversupply still lingers in some areas of the solar market, meaning some price stability may persist for the time being. However, with the ongoing supply chain challenges and demand for more advanced technologies, the industry is bracing for further changes.