Solar panel producers are intensifying efforts to replace silver with alternatives such as copper after silver rallied 130% over the past year, squeezing margins already under pressure from production overcapacity, particularly in China, industry experts said, according to Reuters.
“Silver is the greatest contributor to the increased cost of manufacturing solar panels,” said Derek Schnee, senior commercial solar consultant at JK Renewables, adding that the cost of solar panels has increased 7-15% over the last 12 months.
Silver paste, a key material for photovoltaic panels, makes up 30% of total solar cell costs, Heraeus analysts noted.
After a 147% rally in 2025, silver prices touched an all-time high of $121.64 an ounce in January amid tight physical supply and retail-driven buying, before easing to $77 an ounce.
The photovoltaic sector accounts for 196 million troy ounces, or 17%, of total silver demand, which is also driven by jewellery, electronics, and investment uses.
“In the U.S., silver paste costs per 450-watt module have increased from roughly $5.22 in early 2025 to about $17.65 ,” said Ben Damiani, Chief Technology Officer at renewable power company Cherry Street Energy.
