Solar Panels Get 30% Pricier After China Scraps Export Incentives

Solar panel prices in Czechia have jumped by 31% since December, according to photovoltaic and solar equipment distributor Raylyst Solar.

"We're seeing the first significant price correction on the market after a period of historically low prices. This isn't a short-term fluctuation — it's a reaction to changes in the global supply chain," said Michal Petršek, Raylyst Solar's innovation manager. He explained that manufacturers can no longer benefit from Chinese export incentives while simultaneously facing rising raw material costs.

As of April 1, China scrapped the 9% VAT rebate on solar panel exports. For energy storage systems, the change is being phased in more gradually: the rebate was first cut from nine to six percent, with a full phase-out planned for next year.

"The removal of state support alone has pushed panel prices up by nine percent," said Štěpán Křeček, chief economist at BH Securities. He noted that Chinese panels supply a large share of the Czech market as well, so the policy shift quickly filtered through to domestic prices.

Panel prices fell sharply over the previous two years, hitting a historic low, so part of the current rise simply reflects a rebound from an unusually depressed baseline. Chinese manufacturers have also cut excess production capacity, and some local companies didn't survive the price war.

A shift toward newer technology has also pushed costs up. "These are typically a bit more powerful and are expected to have a longer service life, but the new technology comes at a higher price," Křeček explained. He added that prices should gradually ease as production capacity expands.

Costly raw materials are driving prices up

Rising raw material costs have played a major role. Silver, used in the conductive layers of solar cells, has doubled in price compared to 2024. According to Petršek, silver makes up only a small share of a solar cell's mass but accounts for up to a third of its production cost.

Copper prices have also roughly doubled, while aluminum has risen by around 50% since the start of 2025. Manufacturers are paying more for solar glass and silicon wafers as well.

Dan Steiner, commercial director at Greenbuddies, a company that designs and builds photovoltaic installations and energy storage systems, also pointed to geopolitics and logistics as factors driving up equipment costs.

Around Prague, based on reporting by novinky.cz