The landed cost of solar panels is the total cost to get them delivered and cleared at your location, not just the supplier's unit price. It adds together the product cost (ex-works or FOB price), international freight, insurance, import duties and taxes, customs clearing and port charges, and inland transport to site. Two suppliers can quote the same panel at different unit prices yet produce a very different landed cost once freight, duty and clearing are included, which is why landed cost, not headline price, is the only fair basis for comparing quotes.
”- Landed cost is the all-in cost of panels delivered and cleared at your site, not the supplier's quoted price.
- It includes product price, freight, insurance, import duty and taxes, clearing and port charges, and inland transport.
- The same panel from two suppliers can have very different landed cost once freight and duty are added.
- Always compare quotes on landed cost per watt, never on ex-works or FOB unit price alone.
- Currency movement between order and payment can change landed cost, so the exchange rate is part of the calculation.
Why the quoted price misleads you
A supplier quote is usually ex-works (price at the factory gate) or FOB (price loaded at the port of origin). Neither includes the substantial cost of moving heavy, bulky panels across the world, insuring them, paying duty, clearing customs and trucking them to site. Those costs can add a meaningful percentage to the unit price.
Because different suppliers sit in different countries, ship on different terms and attract different duty rates, the cheapest ex-works quote is often not the cheapest delivered. Landed cost is how you see through that.
What goes into landed cost
Landed cost is the sum of six things. First, the product cost itself. Second, international freight, the ocean or air shipping charge. Third, insurance on the cargo in transit. Fourth, import duties and taxes levied when the goods enter your country. Fifth, customs clearing, port handling and documentation charges. Sixth, inland transport from the port to your site.
Add these together, divide by the total watts in the shipment, and you get landed cost per watt, the single number that lets you compare any two quotes fairly regardless of where they ship from.
Why landed cost is the only fair comparison
Imagine two quotes for the same module. Supplier A is cheaper ex-works but ships from further away with a higher duty rate. Supplier B costs slightly more at the factory but ships on better terms into a lower-duty corridor. On unit price, A wins. On landed cost, B can easily win. Only landed cost tells you which order actually costs less.
This is why procurement teams insist on landed-cost comparison. It removes the distortion of shipping terms and duty differences and shows the true delivered economics of each option.
The currency factor
If you pay a supplier in a foreign currency, the exchange rate on the day you pay affects your landed cost. A currency swing between placing the order and settling it can quietly raise or lower your delivered cost. Serious importers either budget a buffer for this or lock the rate at the start of the order so landed cost is fixed.
That is why financing and currency tools matter to landed cost, not just logistics. Locking the rate turns an uncertain number into a firm one.
Quote the whole BOM from one RFQ
VyaparCred lets you post your entire bill of materials as a single RFQ, so verified suppliers across every corridor quote the full list against the same specification.
Post the complete BOM once, and get verified quotes on every line in 24-48h.
Certification status (ALMM, IEC) is confirmed per line before a supplier can quote.
Attach Pre-Shipment Financing to the accepted order and fund up to 100% of the purchase.