Record silver prices hit solar panel manufacturers: industry on the verge of crisis
Kyiv • UNN
Spot silver prices reached $93 per ounce, tripling its value. This led to an increase in solar panel prices and projected losses for manufacturers.
The rapid rise in silver prices has created a critical burden on the global renewable energy industry. This week, spot prices for the "white metal" set a historical record, reaching $93 per ounce, which effectively tripled its value compared to last year. This is stated in a Bloomberg article, writes UNN.
Details
According to a BloombergNEF report, silver, which is used to create electrical contacts in solar cells, now accounts for 29% of the total cost of a panel. For comparison, in 2023, this share was only 3.4%, and last year - 14%.
Chinese manufacturers, who control most of the global market, have already started raising module prices. In the last week alone, panel costs have increased by 1.4–3.8%, raising the price of a typical 500-watt installation to about $57.
Industry giants forecast losses
Leading companies, including Trina Solar Co. and Jinko Solar Co., have officially warned investors about expected net losses in 2025 and 2026. The industry, which has been suffering from overcapacity for two years, now lacks the resources to absorb rising raw material costs.
Rising raw material prices create insurmountable pressure. This will inevitably lead to further increases in the cost of solar modules for end consumers.
Technological transition to copper: salvation or risk?
To survive, manufacturers are accelerating the transition to cheaper alternatives, particularly copper. Longi Green Energy Technology Co. announced plans to begin mass replacement of silver with base metals as early as the second quarter of 2026.
However, experts warn: rapid material replacement carries technological risks.
Currently, the solar sector consumes about 17% of all global silver production. Although engineers are trying to reduce the use of the metal from 11.2 mg/W to 8.96 mg/W, physical scarcity and speculative demand continue to push prices up.