Global Solar Market Update (August 2025): UK Solar Prices & Supply Trends
By Rajiv Bhatia - August, 2025
By Rajiv Bhatia - August, 2025
The global solar industry is entering a period of significant change that will directly impact UK solar panel pricing, availability, and procurement strategies.
While price speculation has surfaced before without major consequence, the current situation is different. Multiple factors are now converging - from raw material supply cuts to government policy shifts - that signal a trend of rising UK solar module prices in 2025 in the months ahead.
Below, we break down the key developments and what they mean for UK solar installers and developers.
Polysilicon Market Developments and UK Module Costs (2025)
- Price Surge: Polysilicon prices have risen sharply since July. According to Dow Jones OPIS, the China Mono Premium polysilicon price rose 31% over five weeks from early July, stabilising at CNY 44.75/kg (~$6.23/kg or ~CNY 0.094/W) by mid-August (PV-Magazine, 22 Aug 2025).
Some reports pointed to price spikes of up to 70% in August, although market averages show a steadier increase of around 33% for the month (PV-Magazine, 8 Aug 2025).
The global solar industry is entering a period of significant change that will directly impact UK solar panel pricing, availability, and procurement strategies.
While price speculation has surfaced before without major consequence, the current situation is different. Multiple factors are now converging - from raw material supply cuts to government policy shifts - that signal a trend of rising UK solar module prices in 2025 in the months ahead.
Below, we break down the key developments and what they mean for UK solar installers and developers.
Polysilicon Market Developments and UK Module Costs (2025)
- Price Surge: Polysilicon prices have risen sharply since July. According to Dow Jones OPIS, the China Mono Premium polysilicon price rose 31% over five weeks from early July, stabilising at CNY 44.75/kg (~$6.23/kg or ~CNY 0.094/W) by mid-August (PV-Magazine, 22 Aug 2025).
Some reports pointed to price spikes of up to 70% in August, although market averages show a steadier increase of around 33% for the month (PV-Magazine, 8 Aug 2025).
Impact for the UK: As polysilicon is a core input for module manufacturing, higher raw material costs will flow into finished panel prices. Installers should expect to see this reflected in UK wholesale solar panels from Q4 2025 onwards.
Chinese Government Role & Anti-Competition Measures
Chinese regulators, including MIIT (Ministry of Industry and Information Technology), have been holding high-level, closed-door symposiums with industry stakeholders to curb disorderly competition, enforce “not-selling-below-cost,” and phase out inefficient capacity. This reflects a coordinated effort to standardise competition in the PV sector (PVTECH, 28 Aug 2025).
In July, one such meeting brought together executives from GCL, Tongwei, TCL, Jinko, Trina Solar, and Sungrow, alongside representatives from industry associations. As MIIT is China’s industrial authority, these actions are credible and may continue to influence module prices that reach the UK market.
Planned Reductions in Polysilicon Supply – Impact on UK Solar Procurement
- Producers’ Strategy: Leading Chinese producers are creating a $7 billion fund to acquire and shut down less efficient capacity (Reuters, 1 Aug 2025).
- Scale: At least 1 million metric tons of capacity is set to be removed - around 38% of China’s 2024 total production.
Impact for the UK: With deliberate supply cuts, reduced availability will keep upward pressure on solar panel prices, making forward procurement strategies in the UK solar market essential.
PV Glass Production Cuts Driving Higher Solar Panel Costs
Key manufacturers, including Flat Glass Group and Hainan Development, have reduced PV glass supply in line with the Chinese government guidance.
Flat Glass Group is one of the world’s largest PV glass manufacturers, supplying glass for solar modules. Hainan Development is a Chinese state-owned company with PV glass operations that recently cut capacity (End July 2025).
Impact for the UK: As PV glass is another critical component, reduced production contributes to tightening module supply. Installers may face longer lead times and higher costs when sourcing solar panels in the UK.
Export Tax Rebate Adjustments and UK Module Costs (2025)
- Possible Policy Shift: China’s export tax rebates (currently 9% for cells and modules) may be reduced or removed (Reuters, 18 Nov 2024).
- Reasoning: To tackle excess capacity, support overseas expansion of leading producers, and stabilise prices globally.
- Industry Response: The China Photovoltaic Industry Association (CPIA) has introduced a floor price of CNY 0.68/W to prevent further undercutting.
Impact for the UK: If rebates are cut, export costs will rise, and so will UK solar panel prices. This could accelerate moves by manufacturers to expand overseas production facilities, shifting dynamics in the global supply chain.
Currency Considerations - Sterling Weakness and UK Imports
- Pound Decline: Sterling has fallen ~2% against both the euro and the US dollar in recent months, due to weak economic data, high borrowing, and a reported £50bn gap in public finances (The Guardian, 31 Jul 2025).
- Recent Low: The pound also hit its weakest level against the euro since May 2023 (Reuters, 4 Aug 2025).
- Solar Relevance: As modules are priced globally in dollars and euros, any further weakening of the pound directly increases the cost of imports into the UK.
Impact for the UK: Currency trends may compound already rising solar costs, making it even more important to secure a supply of solar panels sooner rather than later.
What This Means for UK Installers & Developers
- Module prices are likely to rise in the short term.
- Procurement strategies should be reviewed urgently to avoid exposure to future increases.
- Conversations with end-customers should consider the possibility that acting sooner rather than later may offer better value, before market adjustments fully take hold.
For UK projects in 2025–2026, working with a proactive solar distribution partner in the UK is essential.
Alternergy, your UK solar wholesale partner, can help secure Tier 1 brands and support your procurement planning.
Planning Ahead: Solar Module Supply
With raw material cuts, production reductions, government policy changes, and currency pressures all in play, securing module supply at today’s rates should be a priority.
We recommend reviewing your forward solar procurement strategy now to mitigate the risk of cost increases in Q4 2025 and early 2026.
➛ View UK Wholesale Solar Panels
Need Support? Contact Us
We are here to help to discuss tailored procurement plans and to secure stock availability for your upcoming projects.
Please do not hesitate to get in touch with us directly to discuss how we can support you through these industry shifts.
Impact for the UK: As polysilicon is a core input for module manufacturing, higher raw material costs will flow into finished panel prices. Installers should expect to see this reflected in UK wholesale solar panels from Q4 2025 onwards.
Chinese Government Role & Anti-Competition Measures
Chinese regulators, including MIIT (Ministry of Industry and Information Technology), have been holding high-level, closed-door symposiums with industry stakeholders to curb disorderly competition, enforce “not-selling-below-cost,” and phase out inefficient capacity. This reflects a coordinated effort to standardise competition in the PV sector (PVTECH, 28 Aug 2025).
In July, one such meeting brought together executives from GCL, Tongwei, TCL, Jinko, Trina Solar, and Sungrow, alongside representatives from industry associations. As MIIT is China’s industrial authority, these actions are credible and may continue to influence module prices that reach the UK market.
Planned Reductions in Polysilicon Supply – Impact on UK Solar Procurement
- Producers’ Strategy: Leading Chinese producers are creating a $7 billion fund to acquire and shut down less efficient capacity (Reuters, 1 Aug 2025).
- Scale: At least 1 million metric tons of capacity is set to be removed - around 38% of China’s 2024 total production.
Impact for the UK: With deliberate supply cuts, reduced availability will keep upward pressure on solar panel prices, making forward procurement strategies in the UK solar market essential.
PV Glass Production Cuts Driving Higher Solar Panel Costs
Key manufacturers, including Flat Glass Group and Hainan Development, have reduced PV glass supply in line with the Chinese government guidance.
Flat Glass Group is one of the world’s largest PV glass manufacturers, supplying glass for solar modules. Hainan Development is a Chinese state-owned company with PV glass operations that recently cut capacity (End July 2025).
Impact for the UK: As PV glass is another critical component, reduced production contributes to tightening module supply. Installers may face longer lead times and higher costs when sourcing solar panels in the UK.
Export Tax Rebate Adjustments and UK Module Costs (2025)
- Possible Policy Shift: China’s export tax rebates (currently 9% for cells and modules) may be reduced or removed (Reuters, 18 Nov 2024).
- Reasoning: To tackle excess capacity, support overseas expansion of leading producers, and stabilise prices globally.
- Industry Response: The China Photovoltaic Industry Association (CPIA) has introduced a floor price of CNY 0.68/W to prevent further undercutting.
Impact for the UK: If rebates are cut, export costs will rise, and so will UK solar panel prices. This could accelerate moves by manufacturers to expand overseas production facilities, shifting dynamics in the global supply chain.
Currency Considerations - Sterling Weakness and UK Imports
- Pound Decline: Sterling has fallen ~2% against both the euro and the US dollar in recent months, due to weak economic data, high borrowing, and a reported £50bn gap in public finances (The Guardian, 31 Jul 2025).
- Recent Low: The pound also hit its weakest level against the euro since May 2023 (Reuters, 4 Aug 2025).
- Solar Relevance: As modules are priced globally in dollars and euros, any further weakening of the pound directly increases the cost of imports into the UK.
Impact for the UK: Currency trends may compound already rising solar costs, making it even more important to secure a supply of solar panels sooner rather than later.
What This Means for UK Installers & Developers
- Module prices are likely to rise in the short term.
- Procurement strategies should be reviewed urgently to avoid exposure to future increases.
- Conversations with end-customers should consider the possibility that acting sooner rather than later may offer better value, before market adjustments fully take hold.
For UK projects in 2025–2026, working with a proactive solar distribution partner in the UK is essential.
Alternergy, your UK solar wholesale partner, can help secure Tier 1 brands and support your procurement planning.
Planning Ahead: Solar Module Supply
With raw material cuts, production reductions, government policy changes, and currency pressures all in play, securing module supply at today’s rates should be a priority.
We recommend reviewing your forward solar procurement strategy now to mitigate the risk of cost increases in Q4 2025 and early 2026.
➛ View UK Wholesale Solar Panels
Need Support? Contact Us
We are here to help to discuss tailored procurement plans and to secure stock availability for your upcoming projects.
Please do not hesitate to get in touch with us directly to discuss how we can support you through these industry shifts.