LONDON: The solar panel industry is speeding up its shift away from silver, a costly key component, as prices surge 130% over the past year, pinching margins amid China’s production glut. “Silver is the biggest contributor to rising solar panel costs,” said JK Renewables’ Derek Schnee, noting panel prices jumped 7-15% in 12 months.
Silver paste accounts for 30% of solar cell costs. With prices peaking at $121.64/ounce in January, manufacturers are hunting alternatives like copper ($77/ounce now). LONGi Green Energy is advancing copper tech, eyeing April-June mass production. “Leading firms will switch to copper metallisation and hybrid pastes,” said Rystad Energy’s Marius Mordal Bakke.
Copper’s 0.5% price tag vs silver spells huge savings. Cherry Street Energy’s Ben Damiani estimates $15 billion/year globally if copper replaces silver at 500GW solar output. But it’s tricky – silver’s conductivity outshines copper.
The photovoltaic sector gobbles 196M troy ounces (17%) of silver demand. As prices soar, expect industry-wide shifts, say experts.
By Reuters
