- Solar equipment prices showed a mixed to rising trend in early 2026, as earlier cost easing reversed due to input volatility and supply-side constraints.
- Feedstock pressure increased as key materials like silver and aluminium remained volatile, raising module and component manufacturing costs.
- Downstream demand remained strong due to rapid capacity expansion and policy support, sustaining procurement despite rising equipment costs.
Solar equipment prices moved upward in early 2026 after a period of cost decline in late 2025, mainly due to rising input costs and policy-driven supply constraints. Key components such as mounting structures had earlier declined due to lower steel prices, but this trend reversed as metal volatility increased. Aluminium, which accounts for a major share of solar components and requires significant quantities per MW of installation, remained a key cost driver, directly impacting equipment pricing. At the same time, rising silver prices increased module manufacturing costs, while China’s reduction in export incentives for solar cells tightened global supply availability, pushing equipment prices higher. Trade policy also added pressure, as Indian solar exports to the US declined by about 35% after tariffs reached 126%, disrupting trade flows and increasing pricing uncertainty. On the production side, India expanded manufacturing capacity to around 144 GW, indicating strong supply growth, though export disruptions limited market balance. Strong downstream demand from large-scale solar installations and renewable expansion continued to support the market despite higher equipment costs.
