Silver Explodes, Solar Panel Industry Struggles
The surge in silver prices has put significant pressure on solar panel manufacturers, who have been grappling with losses and price wars for more than two years. This week, silver prices reached a record high above US$93/oz, reportedly more than triple what they were a year ago. As a result, the cost of silver in solar panels has soared to around 29% of total costs—from 3.4% in 2023 and 14% last year. Amidst severe overcapacity, manufacturers have little room to absorb the rising costs, so they have begun raising prices and accelerating plans to replace silver with cheaper materials like copper.
In the world's largest market, Chinese module manufacturers raised prices above 0.8 yuan per watt this week (up about 1.4%–3.8% from the previous week). That means a 500-watt panel could cost around 400 yuan per unit. Several major players, such as Trina Solar and Jinko Solar, have also warned that they could potentially post another net loss in 2025, indicating that industry pressures have not yet fully bottomed out despite industry "discipline" efforts and government campaigns to reduce excess capacity and halt price wars.
Silver paste is a key material for solar cell electrical connections, and manufacturers have been steadily reducing its use (averaging around 8.96 mg per watt in 2025 from 11.2 mg in 2024). However, rapid substitution carries risks: panels typically require warranties of 20 years or more, so overly aggressive material changes could trigger lifespan issues and potentially significant claims. However, the combination of substitution and a slowdown in global panel installations is expected to reduce silver consumption by around 17% this year. If industrial absorption slows significantly, silver's long-term future could withstand the challenges—although in the short term, investment demand is still considered strong. (asd)
Source: Newsmaker.id
