Price of photovoltaic modules on islands

The low cost of solar panels presents an opportunity for investing in solar energy across the Pacific Islands, giving governments in the region a way to curb inflation and promote energy independence. Connecting remote communities to a centralized power grid could be challenging and costly.

However, as the primary cost component of photovoltaic modules, the price of solar cells plays a decisive role in module pricing. Due to the oversupply of polysilicon in earlier periods, prices have been under sustained pressure since 2023, even falling below cost levels in the first half of 2024.

1. Cost Factors Driving Price Fluctuations The cost of photovoltaic modules is primarily composed of solar cells, glass, encapsulation film, and labor expenses.

In the Solomon Islands, the consumption of electricity per capita is so low – approximately 160 times less than the average used in the top ten countries – that just a few solar panels for a household can be life-changing.

Solar Panels in Tokelau. Photo: UNDP/Andrea Egan During rough weather conditions, fossil fuel imports are often unable to reach the Pacific islands. Trees can fall and sever electric wires while floods can block roads and damage generators, leading to power outages.

The only solar panel and polysilicon pricing report that adheres to IOSCO reporting requirements. The OPIS Solar Weekly Report is the first and only solar panel and polysilicon pricing report to follow the International Organization of Securities Commissions' (IOSCO) requirements for fair and transparent pricing.