Solar Panel Prices Are Rising — Why You Should Go Solar NOW
- Solarlink Energy
- 11 hours ago
- 7 min read
The window to lock in today's solar rates is closing. Here's everything Malaysians need to know before prices climb further.
If you have been waiting for the "right time" to install solar panels, that time was…well…yesterday. With global uncertainty and wars raging, energy costs have risen dramatically and are likely to remain volatile for the foreseeable future. Electricity prices are forecasted to rise imminently, which will be a hit for business owners and homeowners alike. At the same time, solar panel prices are also on an uptrend, and system costs are therefore going to continue rising the longer one waits.
Rising energy costs mean that solar makes more financial sense than ever before, but rising solar panel prices have resulted in greater urgency for installation before rising panel prices start eroding one's ROI.
In this article, we break down exactly why solar panel prices are rising in 2026, what it means for Malaysians, and why acting today makes better financial sense than waiting.
Why Are Solar Panel Prices Rising in 2026?
For nearly a decade, solar panel prices fell consistently. That era is now over. Several powerful forces have converged at once, pushing module costs upward globally — and Malaysia is not shielded from these pressures.
A robotic arm works on the production line of solar panels at a factory of Trina Solar Energy Co., in China in January. Shi Bufa/VCG/Getty Images (image from CNN)
1. China Is Restricting Solar Panel Production
China produces over 80% of the world's solar panels. For years, Chinese manufacturers aggressively ramped up capacity, flooding the global market with cheap modules. The result was a race to the bottom on pricing that benefited buyers everywhere — including Malaysia.
That era is ending. The Chinese government has moved to restrict solar panel production in response to a severe oversupply problem that was causing manufacturers to sell below cost and suffer financial losses. By curbing output, China is allowing the market to rebalance — which means fewer panels in the global supply chain and higher prices for buyers.
This is a structural shift, not a temporary blip. As supply tightens, competition among buyers increases, and pricing power shifts back to manufacturers.
2. China Removes Solar Export Tax Rebates from 1st April 2026
In a landmark policy change, the Chinese government has eliminated its 9% Value-Added Tax (VAT) export rebate on photovoltaic (PV) products, effective 1 April 2026. This rebate had previously subsidised the cost of Chinese solar exports, making panels artificially cheaper on the global market.
With the rebate removed, Chinese manufacturers now face a direct increase in their export costs — and they are passing that cost downstream to buyers in Malaysia and across the world. This single policy change alone is expected to push module prices noticeably higher in the months ahead.
Key Takeaway The removal of China's 9% VAT export rebate on April 1, 2026, combined with production restrictions, means the era of ultra-cheap Chinese solar modules is over. Buyers in Malaysia will feel this pricing shift directly.
3. Silver and Aluminium Prices Are Highly Volatile
Silver price extends volatile run with surge above $86 (image from PearTree)
Solar panels are not just glass and silicon — they rely heavily on silver and aluminium, two commodities that have experienced extreme price volatility in recent months.
Silver is a critical component in solar cell manufacturing, used in the metallic paste that conducts electricity. Its price has surged by nearly 167% year-on-year, and its share of total module production costs has jumped from around 14% in 2025 to over 20% today. Aluminium, used extensively in panel frames and mounting structures, has also seen significant cost increases.
These are not costs that manufacturers can absorb forever. As raw material expenses rise, the price of finished solar modules inevitably follows.
+167%
Silver price increase year-on-year
+40%
Copper price increase year-on-year
+39%
Polysilicon price increase year-on-year
4. War and Geopolitical Tensions Have Driven Up Costs Across the Supply Chain
Ongoing conflicts — particularly in the Middle East — have sent shockwaves through global energy and logistics markets. Solar panel manufacturing is deeply energy-intensive: it involves silicon processing, glass melting, aluminium frame fabrication, and large-scale module assembly, all of which consume significant amounts of electricity and fuel.
As oil prices climb and geopolitical instability disrupts shipping lanes, the knock-on effects are felt across the entire solar supply chain:
Freight costs have risen sharply as insurers and shipping companies price in conflict risk along key maritime routes.
Production costs have increased as energy prices affect every stage of manufacturing.
Raw material prices — from metals to industrial gases — have become more volatile and expensive.
For energy-importing countries like Malaysia, these pressures do not stay overseas. They translate into higher electricity tariffs and more expensive imported goods — including solar panels.
The Data Speaks for Itself
The chart below illustrates the dramatic price movement in M10 TOPCon solar modules (FOB China) over the past year. After remaining relatively stable throughout most of 2025, prices spiked sharply in January 2026 — and analysts project they will continue to climb toward mid-2026 and beyond.
Source: OPIS, A Dow Jones Company © 2025 Oil Price Information Service, LLC — M10 TOPCon module prices (USD/Wp) FOB China, January 2025 to January 2026, showing the sharp price surge entering 2026.
As the chart clearly shows, module prices held at around USD 0.082–0.090/Wp for most of 2025, then surged to over USD 0.115/Wp by January 2026 — a jump of more than 30% in a matter of weeks. Industry analysts project a continued rise toward USD 0.13/Wp by mid-2026.
What Does This Mean for Malaysians?
Electricity Bills Are Not Getting Cheaper Either
Cover image via New Straits Times
At the same time that solar hardware is getting more expensive, Malaysia's electricity costs are also under upward pressure. The new RP4 tariff framework has seen industrial and commercial electricity costs surge by over 60% for some segments. The Automatic Fuel Adjustment (AFA) mechanism — which previously provided rebates that lowered bills — is trending toward neutral or even surcharge territory by mid-2026.
The Malaysian government is encouraging households and businesses to adopt the Time of Use (TOU) electricity tariff as rising fuel costs push up power bills, with rates now varying based on peak (2pm–10pm weekdays) and off-peak periods to incentivise shifting energy usage. As of early 2026, over 128,000 users have adopted the scheme, which aims to reduce cost pressure, improve energy efficiency, and ease strain on the national grid. Meanwhile, reduced fuel adjustment rebates by Tenaga Nasional mean electricity bills are increasing (e.g. 800kWh usage rising from about RM328 to RM342 month-on-month), though lower-usage households under 600kWh are exempt, making TOU a key strategy for consumers to better manage rising energy costs. (Citation: Govt urges Malaysians to adopt Time of Use tariff to ease electricity costs. (n.d.). The Edge Malaysia. https://theedgemalaysia.com/node/799338)
The message is clear: waiting means paying more from both directions — higher solar installation costs and higher monthly electricity bills.
Current Solar Prices in Malaysia (2026)
Despite the upward trend, solar is still a compelling investment today. Here is a general guide to current system prices in Malaysia:
Property Type | Recommended System Size | Estimated Price Range |
Terrace / Small Home | 4 – 5 kWp | RM 18,000 – RM 25,000 |
Semi-D / Bungalow | 8 – 12 kWp | RM 28,000 – RM 45,000 |
Shop Lot / SME | 20 – 50 kWp | RM 70,000 – RM 180,000 |
Factory / Industrial | 100 kWp – 1 MWp+ | Contact us for a custom quote |
Note: Prices are indicative and vary based on roof type, panel brand, inverter specification, and site conditions. Contact Solarlink Energy for an accurate, site-specific quotation.
The Smart Move: Lock In Today's Rates
Solar is one of the few investments where delaying actually costs you money — not just in lost savings, but in a higher price tag for the same system. With module costs already trending upward and further increases expected through mid-2026 and beyond, every month of waiting erodes your financial advantage.
Here is why installing solar now remains the right decision:
Today's prices are still lower than where they are heading. Lock in before the full impact of China's policy changes filters through the supply chain.
Your payback period improves as electricity tariffs rise. The higher TNB bills climb, the faster your solar system pays for itself. Think “buy low, sell high”, that works in this situation as if you install now and prices rise, the electricity you generate will be sold back at the System Marginal Price (SMP) which represents the cost of the last unit of electricity produced, reflecting fluctuating generation costs, demand, and fuel prices.
Generous tax incentives available. With GITA and Capital Allowance (deadlines for applications of both will end this 31st December 2026), solar is made more alluring (especially in these times of uncertainty).
Malaysia's grid incentives are still active. Programmes like ATAP allow you to sell excess solar energy back to the grid — but availability and terms can change.
Long-term savings remain substantial. A typical Malaysian household can save between RM 70,000 and RM 120,000 over a 25-year system lifespan.
Frequently Asked Questions
Will solar panel prices continue to rise in Malaysia?
Based on current market signals — China's export rebate removal, production restrictions, rising raw material costs, and global logistics pressures — yes. Industry analysts project further increases through mid-2026. While no forecast is guaranteed, the structural drivers behind this trend are significant and unlikely to reverse quickly.
Is solar still worth investing in if prices are going up?
Absolutely. Even at higher prices, the long-term savings from solar — combined with rising electricity tariffs — still deliver a strong return on investment. We are looking at an average ROI between 2.5 to 4 years here!
The key is not to wait for prices to fall, because that window appears to have closed. Acting now at current prices is still significantly better than acting 6–12 months from now.
What types of solar solutions does Solarlink Energy offer?
The question here should be what don’t we offer?
Solarlink Energy is a full-service solar EPCC (Engineering, Procurement, Construction & Commissioning) firm based in Malaysia. We handle everything from site assessment and system design to installation, grid connection, operations and maintenance, a comprehensive suite of solar panels, inverters, and battery energy storage systems (BESS), and after-sales support — for residential, commercial, and industrial clients all across Malaysia.
How do I get started?
Simply reach out to our team for a no-obligation site assessment and customised quotation. We will evaluate your roof, energy consumption, and financial goals to design the optimal solar system for your property.
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