Solar Energy: Local and International Trends
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Solar Energy: Local and International Trends
The global solar market is entering a new phase where solar panel prices are projected to rise by approximately 9% in late 2025 through 2026. This marks a significant shift after years of steady price declines driven by oversupply and aggressive competition, particularly from China. Key causes include a 48% increase in polysilicon costs, removal of China’s 13% VAT export rebate, and production cuts by leading manufacturers reducing supply capacity to 55 – 60%. These structural factors suggest the era of ultra-cheap solar panels is ending, with global prices normalizing at higher levels.
In contrast, solar battery prices are expected to continue declining due to technological improvements, increased production efficiency, and broader adoption of more affordable chemistries like LiFePO4. Battery storage costs are becoming more accessible, improving the financial case for solar plus storage models in South Africa and globally.
Locally, South African solar product prices mirror these global trends, with panel cost increases anticipated given international supply dynamics and currency fluctuations. Meanwhile, battery prices remain stable or slightly declining, reinforcing their value for energy resilience investments.
This market transition means timing and quality matter more than ever. Smart procurement strategies that secure high-quality, Tier-1 branded solar panels and batteries at competitive prices will protect against cost volatility and supply disruptions. With rising panel costs, investing now can hedge against future price increases and capitalize on currently attractive battery storage rates, ensuring optimal ROI and long term energy cost stabilization.
TBG SA leverages global partnerships and purchasing scale to offer clients the best pricing combined with superior product quality and an exceptional after-sales service experience, helping businesses confidently navigate this evolving market and secure sustainable energy advantages.
Sources: Wood Mackenzie, PV Magazine, Coule Energy, Pretapower, EnergySage