Feb 20, 2026
The solar industry is rapidly moving away from silver due to rising costs.
Solar panel manufacturers are ramping up efforts to substitute silver with alternatives like copper after silver prices surged 130% over the past year, further pressuring already strained margins due to production overcapacity, particularly in China, according to industry experts.
"Silver significantly drives up the cost of solar panel manufacturing," stated Derek Schnee, a senior commercial solar consultant at JK Renewables, noting that the price of solar panels has risen by 7-15% in the past year.
Analysts from Heraeus highlighted that silver paste, an essential component for photovoltaic panels, constitutes 30% of the overall costs for solar cells. Following a 147% increase in 2025, silver reached a peak of $121.64 per ounce in January due to limited physical supply and demand driven by retail purchases, before settling at $77 an ounce. The photovoltaic industry represents 196 million troy ounces or 17% of total silver demand, which is also influenced by sectors like jewelry, electronics, and investments.
"In the U.S., the cost of silver paste for each 450-watt module has risen from about $5.22 in early 2025 to approximately $17.65," remarked Ben Damiani, Chief Technology Officer at Cherry Street Energy.
SHIFT TO COPPER GAINS MOMENTUM
As silver prices reach $2.5 million per metric ton, solar manufacturers are quickly moving toward alternatives like copper, currently priced at $12,823 per ton. In January, LONGi Green Energy Technology Co Ltd, a major Chinese solar panel manufacturer, announced advancements in cost-saving technologies involving base metals and plans to commence mass production between April and June.
"Broad industry transitions are anticipated this year, as leading manufacturers adopt pure copper metallization and hybrid silver-copper pastes," noted Marius Mordal Bakke, vice president of solar supply chain research at Rystad Energy.
BILLIONS IN SAVINGS FORECAST
With copper trading at about 0.5% of silver's price, the potential for significant cost reductions from this transition is substantial, Bakke added. Damiani from Cherry Street Energy estimated that switching to copper-based metallization could yield approximately $15 billion annually in savings for the global solar sector at a production level of 500 gigawatts. However, experts cautioned that replacing silver poses challenges due to its superior electrical conductivity compared to copper.
"Silver significantly drives up the cost of solar panel manufacturing," stated Derek Schnee, a senior commercial solar consultant at JK Renewables, noting that the price of solar panels has risen by 7-15% in the past year.
Analysts from Heraeus highlighted that silver paste, an essential component for photovoltaic panels, constitutes 30% of the overall costs for solar cells. Following a 147% increase in 2025, silver reached a peak of $121.64 per ounce in January due to limited physical supply and demand driven by retail purchases, before settling at $77 an ounce. The photovoltaic industry represents 196 million troy ounces or 17% of total silver demand, which is also influenced by sectors like jewelry, electronics, and investments.
"In the U.S., the cost of silver paste for each 450-watt module has risen from about $5.22 in early 2025 to approximately $17.65," remarked Ben Damiani, Chief Technology Officer at Cherry Street Energy.
SHIFT TO COPPER GAINS MOMENTUM
As silver prices reach $2.5 million per metric ton, solar manufacturers are quickly moving toward alternatives like copper, currently priced at $12,823 per ton. In January, LONGi Green Energy Technology Co Ltd, a major Chinese solar panel manufacturer, announced advancements in cost-saving technologies involving base metals and plans to commence mass production between April and June.
"Broad industry transitions are anticipated this year, as leading manufacturers adopt pure copper metallization and hybrid silver-copper pastes," noted Marius Mordal Bakke, vice president of solar supply chain research at Rystad Energy.
BILLIONS IN SAVINGS FORECAST
With copper trading at about 0.5% of silver's price, the potential for significant cost reductions from this transition is substantial, Bakke added. Damiani from Cherry Street Energy estimated that switching to copper-based metallization could yield approximately $15 billion annually in savings for the global solar sector at a production level of 500 gigawatts. However, experts cautioned that replacing silver poses challenges due to its superior electrical conductivity compared to copper.