Solar Panel Market: Material Polysilicon Rises to Highest in Decade in China

Polysilicon prices rose above last year's high amid strong demand and production halts.

Photovoltaic modules at a solar power plant near Golmud, Qinghai province, China.

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The price of a key material for solar panels soared to the highest level in more than a decade in China, raising the cost of clean energy just as the country rushes to add more renewable power to reach climate goals.

The average cost of the most expensive grade of polysilicon rose to 273.1 yuan ($40.62) per kilogram on Wednesday, according to the China Silicon Industry Association, surpassing last year's high of 272.2 yuan. Prices for the ultra-conductive material last year reversed a decade of steady declines to hit the highest level since 2011 as demand surpassed producers’ installed capacity. The gains have been aggravated this month by production halts caused by reasons including power rationing, according to a statement from the industry association.