Looking for an Alternative: The Price of Silicon Has Fallen So Low That Frames Are Now the Most Expensive Part of Solar Panels

Who would have thought that aluminum frames would become the most expensive part of solar panels just a few years ago? Now, the industry is searching for an alternative.

In short. For years, polysilicon and glass in photovoltaic cells dominated the cost structure of solar panel production. However, raw material prices have fluctuated, and by 2024, aluminum frames took the lead, accounting for 14% of the total production cost.

The breakdown. At the annual conference of the China Photovoltaic Industry Association, an analyst from SinoLink Securities provided the following insights:

Frames are now the most expensive component in solar panel production, making up 14% of the cost. While aluminum processing has become cheaper due to increased production, the raw material’s cost remains high.
Glass, which protects and stabilizes PV cells, is the second most expensive component at 13.4%. Its price remains high because of Chinese policies restricting its production.
The silver paste used to form electrical contacts in the cells is the third most expensive material at 11.6%. Limited supply, driven by growing demand for silver in the tech sector, contributes to this cost.
Polysilicon, once the primary cost driver, now ranks fourth, comprising 9.9% of the production price. This shift is due to China’s efficient silicon industry and growing supply.

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Looking for an Alternative: The Price of Silicon Has Fallen So Low That Frames Are Now the Most Expensive Part of Solar Panels

For years, polysilicon was the most expensive material in solar panels. Now, it ranks as the fourth most expensive.

The industry is seeking alternatives to aluminum to keep production costs down.

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