Are solar panel prices about to surge? Why now might be the perfect time to invest

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Euronews or enjoy below:

🗞️ Driving the news: Solar panel prices in Europe could face upward pressure due to China’s recent VAT export reforms and a sharp surge in silver prices
• While solar modules have dropped roughly 90% over the last decade, the elimination of China’s nine per cent VAT rebate for exports and supply constraints in key metals may push costs higher in the medium term, particularly for residential installations

🔭 The context: Europe relies heavily on Chinese manufacturing for photovoltaic panels, accounting for nearly 98% of imports
• Meanwhile, rising demand from households, AI data centres, and industrial solar projects is coinciding with volatile commodity prices
• Solar battery costs have similarly fallen, but input costs for silver, copper, aluminum, and lithium have increased since late 2025, creating temporary pressure on solar component pricing

🌍 Why it matters for the planet: Solar energy remains one of the most effective tools to cut carbon emissions and reduce fossil fuel dependence
• Delays or price shocks could temporarily slow the deployment of low-carbon energy solutions, potentially affecting Europe’s ability to mitigate climate impacts and maintain energy security

⏭️ What’s next: Analysts advise that the current period may be one of the last opportunities to secure solar systems at historically low prices before the cost effects from raw materials and tax changes fully propagate
• Governments and investors are poised to monitor supply chain dynamics, silver and copper prices, and regional demand to plan clean energy strategies

💬 One quote: “Driven by geopolitical uncertainty, supply shortages and increasing demand from AI data centres, prices for copper, aluminum and lithium have increased significantly since Q4 of 2025.” — Jannik Schall, 1KOMMA5°

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