Iran war has fuelled 15-20% spike in solar module prices: SAEL CEO

Solar module prices have risen up to 20 per cent amid supply disruptions, rising freight costs, and higher metal prices triggered by the Iran conflict

Solar module prices have increased as a result of supply chain disruption caused by the Iran war. Prices have gone up by 15–20 per cent, primarily driven by higher freight costs and a surge in input material costs such as silver and aluminium, Laxit Awla, executive director and chief executive officer of SAEL Industries, said.

 

The company is significantly impacted by volatility in market prices. Awla said, “The more significant impact we are feeling is from increased freight costs, which have gone up substantially. While there are no major supply chain issues, market prices are quite volatile, with silver prices fluctuating significantly.”

 

Silver, extensively used in cell manufacturing, has seen sharp price movements, directly pushing up production costs. At the same time, aluminium, used in module frames, has also become more expensive. Awla noted that recent geopolitical events, such as aluminium facilities in the Gulf region being impacted by the war, have led to an increase in aluminium prices. “These factors have directly resulted in module price rise of around 15–20 per cent,” he added.

 

While some easing of prices is expected as the geopolitical situation stabilises, structural cost pressures may persist. In particular, China’s decision to withdraw export incentives for photovoltaic products is likely to push prices higher. Beginning April 1, 2026, China will eliminate value-added tax (VAT) rebates on PV exports, while rebates for battery products will be reduced from 9 per cent to 6 per cent from April 1 to December 31, 2026, before being phased out entirely by January 2027. “If the 9 per cent benefit becomes zero, cell prices will rise,” Awla said.

 

Against this backdrop of global volatility in the solar segment, SAEL is increasingly progressing its waste-to-energy (WTE) business. Unlike solar, waste-to-energy projects do not get affected by global disruptions as they use locally available paddy stubble to generate power. By providing 24-hour power and solving grid stability issues, waste-to-energy offers a more stable, long-term solution.

 

The company currently has 11 plants across Punjab, Haryana, and Rajasthan. It procures about 2 million tonnes of paddy straw annually between October and mid-January. Over the past decade, it has built a network involving aggregators and balers. Most of the stubble is sourced from within 100 km, ensuring efficient logistics, Awla noted.

 

Building on this model, SAEL plans to develop around 500 MW of agri WTE capacity over the next 3–5 years, which will require over 5 million tonnes of paddy stubble and an estimated investment of around ₹7,500 crore.

 

At the same time, the company continues to expand its solar energy portfolio. The investment target across all its segments amounts to roughly ₹40,000 crore in the coming few years. It recently commissioned 600 MW of renewable energy projects in Andhra Pradesh. It is also working on its cell facility in Greater Noida, which is currently under construction and is expected to be completed by the end of next year.

 

Additionally, the company is considering entering the data centre business. While concrete plans are not expected within a year, SAEL will be investing about ₹2,000 crore in a pilot project in Andhra Pradesh, Awla said. “We are still studying and evaluating data centres as a segment,” he said.