Smaller and major-scale solar energy investors face differing prospects amid RES investment opportunities offered by extremely higher wholesale electricity prices as these opportunities are being largely offset by higher equipment costs.
Sharply higher wholesale electricity prices have generated stronger investment opportunities for bigger RES investors, while, for smaller players, these prospects are being dampened by higher RES equipment costs, severely diminishing their more modest profit margins.
Demand for solar panels has surged around Europe in recent times, pushing up prices. The cost of solar panel mounting systems has also risen as a result of recent sanctions imposed on Russian steel exports, which have driven steel prices higher.
Solar panel prices had begun falling early in 2022 following a period of pandemic-related increases, but are now rising again with no price de-escalation seen in the short term, RES sector officials have projected.