According to a recent report by industry consulting firm Resta Energy, it is anticipated that more than half of the photovoltaic projects worldwide may face delays or cancellations due to the surge in raw material and transportation costs.

The report highlights that due to supply chain pressures and rising raw material prices, around 50 million kilowatts of utility-scale photovoltaic projects out of the planned 90 million kilowatts for 2022 could face obstacles in construction.

Data from the market research firm Exinma reveals that since October 2020, the price of polysilicon has risen by over 200%. Additionally, the manufacturing costs of photovoltaic components have increased by nearly 50% compared to last year, reaching the highest level since 2017, due to the continuous rise in raw material costs, including silver, copper, aluminum, and glass.

Moreover, the tight supply chain and the increase in shipping costs are expected to continue to drive up the prices of various raw materials. According to Resta Energy's report, since the outbreak of the COVID-19 pandemic, shipping costs have increased by nearly 500%, leading to a corresponding increase in the costs of photovoltaic raw materials.

The report points out that photovoltaic component and related transportation costs typically account for 1/4 to 1/3 of the total capital expenditures of a project. The increase in component and transportation costs will significantly impact the returns of photovoltaic projects. Resta Energy's comparison of last year's transportation costs with current costs reveals that the rising costs have resulted in a 10% to 15% increase in the cost of solar power, posing a significant challenge for most projects scheduled for 2022.

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