- The price of SHS solutions may increase by as much as 15 per cent.
- This hike would impact electrification efforts across Africa.
- Suppliers expect supply chain disruptions to last till next year.
A recent GOGLA survey of over 30 off-grid solar product manufacturers projects that the supply chain disruption caused by materials shortages and increased shipping costs could last through 2022.
Dutch-based GOGLA surveyed solar appliances and SHS suppliers to enquire about the impact of the global chip shortages and other material-related issues. Most businesses surveyed believe that the shortage of stock supply could last between 18 to 24 months, with only a minority of suppliers believing that shortages would end this year.
While manufacturers and suppliers were concerned with the global shortage of chipsets and controllers, they were also concerned about the rising polysilicon prices, which have increased solar modules prices while the rising price of copper is driving up cabling costs.
Developers and installers in the African continent deal with rising project costs (passed on to consumers) due to increased shipping costs. For instance, respondents to the GOGLA survey predicts price rises ranging from 9 per cent for solar lanterns up to 52 per cent for solar-powered TVs. In addition, prices of SHS solutions are expected to rise by up to 14 per cent, while solar water pumps may reach 15 per cent.
These price hikes will severely impact electrification goals across the continent, especially as the region seeks to recover some of the electrification progress scaled back by the Cobvid-19 pandemic.