Why is solar industry demand for silver declining, and what are the main strategies manufacturers are using to reduce silver use?

Solar industry demand for silver is declining because soaring silver prices — up nearly 150% in 2025 — have made it the biggest cost factor in solar module production, accounting for about a fifth of production costs, far above the 3%–5% level before 2024; in response, manufacturers are adopting several strategies: printing thinner silver lines onto silicon cells, substituting pure silver paste with silver-coated copper paste, removing thick silver conductors via new technologies, and pursuing 'zero silver' solutions — exemplified by Longi Green Energy’s commercial production of copper-replacement cells and Canadian Solar’s dedicated 'zero silver' R&D program.

What is the projected impact of falling solar silver demand on the global silver market balance, according to JPMorgan?

According to JPMorgan, solar demand for silver is expected to fall by about 30% in 2025, equivalent to roughly 60 million ounces, which would be sufficient to push the silver market — excluding inventory and ETF flows — back into balance after five consecutive years of deficits.

Silver's Solar Demand Boom Starts to Fade as High Prices Bite

Aug 28, 2026

Solar panel makers are cutting silver usage due to high prices, projecting a drop in global silver demand from the sector in 2026. JPMorgan forecasts a 30% decline this year, potentially balancing the market after five years of deficits.

bloomberg

2026-08-28

Silver's Solar Demand Boom Starts to Fade as High Prices Bite

Silver's Solar Demand Boom Starts to Fade as High Prices Bite

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