The days of cheap solar power are quickly fading away

  • Polysilicon spot prices hit a low of $ 6.30 / kg in mid-2020 and jumped 600% to $ 36.09 / kg last week
  • Bank of America: Maybe the cost of polysilicon and ultimately solar panels will continue to rise over the years


The cost of going green is about to get more expensive as polysilicon prices rise and will likely remain high due to plant closures in China.

Polysilicon is a super refined form of silicon used in solar panels for its semiconductor-like material properties. Polysilicon spot prices hit a low of $ 6.30 / kg in mid-2020 and jumped 600% to $ 36.09 / kg last week, according to BloombergNEF.

China is one of the main producers of polysilicon. The latest closures of energy-hungry factories, such as those that refine silicon, have resulted in a drop in production that will affect global supply. Countries in a hurry to green their economies are increasing demand for solar panels, pushing up polysilicon prices.

“It has been a very crazy year,” said Sakura Yamasaki, director of Singapore Solar Exchange, during a recent Roth Capital Partners webinar. She said polysilicon prices could stabilize in the second quarter of 2022, but believes prices will continue to rise.

“The climb is not over,” Yamasaki said.

She said the market will remain “chaotic” in 2022, as other costs such as freight and commodities make the cost of producing solar panels much higher than in previous years.

“There will be no relief in 2022,” she said, with prospects “as crazy as this year”.

Perhaps the cost of polysilicon and ultimately solar panels will continue to rise over the years, as Bank of America recently noted: as much as $ 150 trillion in new investment would be needed to achieve a 30-year “net zero” world – equivalent to some $ 5,000 billion in annual investment – and equivalent to twice the current global GDP.

The transition to a net zero global economy is shockingly costly. For the United States alone, President Biden wants 40% of the U.S. electricity grid to provide solar power by 2035, either a bunch of new polysilicon factories will have to be built or the cost of going green will be astronomically high. Dear.

By Zerohedge.com

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