Rising aluminium prices linked to the conflict in the Middle East are increasing costs for the US solar industry, adding fresh pressure on developers already dealing with higher silver prices, tariffs and policy uncertainty.
Commercial solar companies in the United States are reporting higher installation costs as disruptions linked to the Iran conflict affect aluminium supply chains and increase the cost of solar mounting systems. Aluminium is widely used in rails, clamps and brackets that support solar panels.
Damage to refining facilities in the Gulf region and shipping disruptions through the Strait of Hormuz – a route that handles more than 5 million tonnes of aluminium annually – have pushed aluminium prices sharply higher in recent months. London Metal Exchange aluminium prices have risen around 15 per cent since late February, while CME COMEX aluminium futures have gained more than 30 per cent.
Jim Wood, chief executive of SEG Solar, said solar racking prices across projects have already increased by around 20 per cent, adding that some projects with weaker returns could become financially unviable.
Aluminium costs are spreading across the solar supply chain
The United States imported more than 5 million tonnes of aluminium in 2025, according to US Geological Survey data. Canada supplied more than half of total imports, while the United Arab Emirates and Bahrain together accounted for around 12 per cent.
However, because aluminium prices are tied to global benchmark markets, supply concerns in the Gulf are also increasing costs for Canadian material entering the United States. Derek Schnee, senior commercial solar consultant at JK Renewables, said Canadian producers are adjusting prices in line with higher international aluminium rates because the North American market remains globally integrated.