Rising prices for aluminum components, driven by conflict in the Middle East, are increasing installation costs for commercial solar customers in the United States, adding further financial pressure to an industry already grappling with high silver prices.
Aluminum is a key material for solar mounting structures, widely used in rails, clamps, brackets, and other components that secure solar panels. According to analysts at BMI, a Fitch Solutions unit, aluminum-related mounting and structural components account for about 9% to 10% of total solar project costs.
Damaged aluminum refining facilities in the Gulf region and shipping disruptions in the Strait of Hormuz, which handles over 5 million metric tons of aluminum annually, have pushed the LME benchmark aluminum price up 15% since late February. COMEX aluminum futures in New York have risen more than 30%.
Jim Wood, CEO of SEG Solar Inc., said selling prices for mounting systems in solar projects have risen approximately 20%. He expects some projects with already thin profit margins may be canceled as a result.
According to US Geological Survey (USGS) data, the US imported more than 5 million metric tons of aluminum in 2025. Canada supplied over 50%, while the UAE and Bahrain each supplied 12%.
Because most aluminum products are priced off global benchmarks, supply risks in the Gulf have also pushed up prices for aluminum imported from Canada. Derek Schnee, senior commercial solar advisor at JK Renewables, noted that the US and Canada are part of a globally integrated market, so Canadian producers will raise prices in line with global trends.
The aluminum price surge comes as the US solar industry expands rapidly, with electricity demand also rising due to AI hyperscale data center construction.
The US Energy Information Administration (EIA) projects utility-scale solar installations will add 43.4 GW of new capacity, a 60% year-over-year increase. Analysts warn that higher mounting equipment costs could ultimately erode project profitability.
Meanwhile, the industry is also contending with tariffs on imported solar panels and the Trump administration's policy preference for fossil fuels over renewable energy.
Written by Cora Ji, jiruyan@mysteel.com
