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Sandeep Raheja, Odyssey Director of Global Trade Operations
Rising commodity prices and shifting global trade policies are reshaping the economics of solar projects worldwide. For solar EPCs, procurement is no longer a back-office function but a critical business driver. In this piece, Odyssey’s Director of Global Supply Chain Management shares how EPCs can stay ahead—no matter what volatility the global supply chain brings.
January 19, 2026 | For much of the last decade, the solar industry has benefited from a steady decline in equipment costs, enabling rapid deployment and increasingly competitive project economics. That era is changing. Today, solar EPCs are operating in a supply chain environment defined less by predictable cost curves and more by volatility, policy risk, and compressed decision timelines.
Two developments in particular—raw material price volatility and shifts in China’s export tax policy—are already reshaping procurement strategies across the global solar and energy storage markets.
Cable pricing is a leading indicator of broader supply chain stress.
Between December 2025 and January 2026 alone, copper prices rose by more than 12 percent, while aluminium increased by approximately 9 percent. Copper reached multi-year highs driven by a convergence of factors: production disruptions in major mining regions such as Chile, Indonesia, and the Democratic Republic of Congo; expectations of structural supply deficits beginning in 2026; and accelerating demand from power grids, electric vehicles, data centres, and renewable energy projects.
Because copper is a primary input for electrical cables, manufacturers have little choice but to pass these costs through. What EPCs are now seeing in practice is shorter quotation validity periods, more frequent price revisions, and reduced tolerance for delayed procurement decisions. The implication is clear: traditional procurement timelines are no longer sufficient to secure pricing certainty.
At the same time, policy decisions are adding a second layer of complexity.
In January 2026, China’s Ministry of Finance announced that export tax rebates for photovoltaic modules, silicon wafers, and energy storage batteries will be reduced or removed effective April 1, 2026. Given China’s central role in global solar manufacturing, this policy shift is expected to have material impacts on pricing and availability worldwide.
For EPCs, this means higher equipment costs beginning in Q2 2026, potential supply volatility ahead of implementation, and increased risk for projects that have not yet locked in procurement. In markets where margins are already tight, these dynamics can quickly erode project viability.
What does this mean for how EPCs should operate?
First, procurement can no longer be treated as a back-office function that follows project development. It must be integrated earlier into project planning, with real-time visibility into supplier pricing, logistics, and delivery timelines.
For projects under strict timelines or revenue caps, EPCs may also need to adopt more proactive pricing strategies. Closely coordinating with suppliers to lock in commodity pricing through back-to-back arrangements, or exploring hedging mechanisms for key materials, can help mitigate exposure to sudden cost increases. These approaches require closer supplier relationships and earlier commitment, but they can be critical for protecting project margins in volatile markets.
Second, access to working capital and credit is becoming as critical as access to equipment itself. When price-validity windows shrink, the ability to act quickly—without straining cash flows—becomes a competitive advantage.
This is where procurement models aligned with the realities of EPC business cycles matter. Platforms that combine equipment sourcing, price transparency, logistics coordination, and embedded credit enable EPCs to move faster, protect margins, and take on more projects even in uncertain conditions.
The solar industry has proven to be remarkably resilient. But resilience going forward will depend on how effectively companies adapt their procurement strategies to a more complex global environment. Those who plan proactively—securing supply early, managing commodity exposure, aligning financing with project cash flows, and leveraging technology to reduce friction—will be best positioned to continue scaling in 2026 and beyond.
At Odyssey Energy Solutions, we work closely with EPCs to navigate these shifts, helping them streamline procurement, access equipment on credit, and protect project economics in uncertain times. In today’s market, proactive procurement is no longer optional—it is foundational to sustainable growth. Get in touch to see how Odyssey can ensure supply chain stability in this environment.
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