Falling prices for polysilicon, the basic material that goes into the making of solar panels, have dropped to a three-year low, helping offset higher interest rates faced by PV investors, a development expected to help the PV sector rebound, especially from September onwards, market players have told energypress.

Polysilicon price levels have fallen to levels last recorded in the summer of 2020, leaving behind price peaks of recent months that had made solar energy project business plans unsustainable.

China, a leader in the production of polysilicon, controls this market’s trends. Its polysilicon prices have been on a downward trajectory in recent times, falling to 8.54 dollars per kilo last week, the lowest level over the past three years, according to market data published by PV magazine.

As a result, the cost of solar panels has fallen from 30 cents per watt in 2022 to less than 20 cents per watt at present.

Besides descending polysilicon prices, a big reduction in transportation costs, down to one-fifth of prices recorded just recently, has also helped lower the cost of solar panels.