Polysilicon price jumps 9% in a week as energy crisis hits China

Facebook
Twitter
LinkedIn
Reddit
Email
Factories across China have been told to shut or reduce their operating hours as the energy crisis harms production. Image: Daqo

Polysilicon prices have risen by 8.6% to RMB230/kg (US$35.3/kg) this week following a power crisis in China that has seen the government order silicon metal producers to curb their operations.

Producers of silicon metal in China have been told by the country’s government to shutter or reduce working hours while a power crisis grips the country, and in particular Yunnan Province. As a result, the price of solar-grade polysilicon has leapt by almost 9% in a week.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The latest jump in polysilicon price is expected to increase the price of monofacial PERC modules by 2.1%, equivalent to around US$0.005/W. This follows a year that has seen module prices increase by 25%, causing the delay or cancellation of solar projects.  

China has been hit by a perfect storm when it comes to its energy crisis. Falling coal production and reserves, poor energy efficiency and surging demand following the pandemic have all combined to deplete power availability and push up prices.

As a response, China has ordered railway companies and local authorities to expedite coal supplies to utilities. Coal still accounts for 56% of China’s power generation and is used to power many productions sites that make solar products.

Indeed, Bloomberg News, citing unidentified sources, reported yesterday (29 September) that China was weighing up whether to raise industrial power prices in order to ease the supply pressures.

China has recently sought to reduce its energy consumption but “the curbs more likely ignited a tinderbox of issues accumulating for months around soaring fuel prices and coal shortages, highlighting the difficulties in implementing energy policy in the context of a huge economy with numerous moving parts,” according to an analysis paper by S&P Global published yesterday (29 September).

Module prices have been on the rise since December last year due to a number of factors, including polysilicon supply shortages and soaring shipping costs. Experts expected the price of modules to come down in the new year.


Analysis

Sean Rai-Roche, Reporter, PV Tech

An energy crisis in China that has seen silicon manufacturing curtailed is not good news for the solar industry. If it persists, it will likely cause greater upward pressure on polysilicon, and in turn module, prices. While the impact of the energy crunch on modules has been minimal so far (up 2.1%), the situation could worsen if it drags on.

Polysilicon production was already under pressure this year after the major producers failed to bring enough capacity online to meet demand and nervous manufacturers bought up large quantities at high prices fearing shortages. This, combined with massively increased shipping costs, caused the price of modules to soar and delayed projects.

Nonetheless, industry analysts and experts predicted that the price of modules would plateau before the end of this year and start to fall thereafter. The major players were bringing more polysilicon capacity online and there would be more than enough supply to meet demand.

Fuel shortages in China causing production to slow or stop was not part of their predictions, however.

And while this latest crisis will probably be short lived as the Chinese state steps in and demands the speedy delivery of coal to its utilities, it will likely cause yet more uncertainty and price rises down the supply chain. One potential silver lining is that the situation has highlighted the country’s (and our industry’s) reliance on coal power, which must be addressed.

10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

October 7, 2025
Solar PV will account for almost 80% of the 4.6TW of new renewable power expected to be added by 2030, according to the International Energy Agency (IEA).
October 3, 2025
Chinese government policies and supply-side production cuts will drive a significant increase in solar and storage component costs.
September 30, 2025
Chinese solar firm SoleFiori (Hongjun New Energy) has signed an agreement with the Saudi Arabian government to build a 6GW heterojunction technology (HJT) module production facility in the country.
September 26, 2025
Chinese president Xi Jinping has unveiled a new climate target for China at the United Nations Climate Change Summit, which aims to cut by 7-10% China's peak greenhouse gas emissions by 2035.
Sponsored
September 26, 2025
Over the past three years, Tongwei has made a remarkable leap in the solar sector, shipping over 100GW of modules at record-breaking speed.
September 23, 2025
JinkoSolar and LONGi Green Energy have agreed to terminate ongoing patent lawsuits, and enter into a 'cross-licensing agreement'/

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK