PV industry demand for silver could rise by 20% this year
Demand for silver in the photovoltaic industry hit 193.5 million ounces in 2023, according to the Silver Institute. It predicts that demand will grow by another 20% in 2024.
Only5mins! – Silver price outlook and PV industry impact
Michael DiRienzo, executive director of The Silver Institute, tells pv magazine that average silver prices will hover around $23 per ounce this year, without any anticipated supply disruptions for the solar industry.
Average silver price expected to reach $27.3 per ounce this year
According to the Silver Institute, global industrial silver production is expected to grow 8% this year due to strong demand for consumer electronics and solar. The price for silver is expected to peak at $32 per ounce later this year and its average price to increase 33% over 2020.
Solar and silver price hikes
The PV industry has experienced several rounds of price increases since the second half of 2020, from polysilicon to materials such as PV glass and films. Between July 2020 and February 2021, prices quoted for 3.2 mm and 2 mm glass surged by more than 60% per square meter. Prices for EVA and POE encapsulant films skyrocketed by more than 40% and 10%, respectively. Prices for silver paste also rose 7%, and have since remained stubbornly high. PV InfoLink Chief Analyst Corrine Lin examines the impact of silver’s recent price turbulence on PV cell manufacturing.
Silver accounts for 10% of PV module costs
The share of silver in the total cost of PV modules has increased by around 5% in recent months, according to US analyst Matthew Watson. He told pv magazine that silver prices are set to rise, adding that the metal will eventually account for an even larger percentage of overall module costs.
Rising prices may push PV industry away from silver
Increasing prices may prompt module manufacturers to find alternatives, or at least reduce silver use in solar cell metallization, according to a recent study. Researcher Samuele Lo Piano, however, told pv magazine silver availability does not represent an issue for large scale PV. Copper-nickel alloys may offer an alternative, he added, but there could be a long wait for them to be viable.
Silver prices expected to rise by 11% this year
Silver demand for PV production worldwide is forecast to grow to 105 million ounces this year, as overall demand hits an eight-year high. Prices for the precious metal could reach a seven-year high of $30.00 per ounce this year but, according to the Silver Institute, this level is still far away from any critical threshold that would make silver supply for the solar industry problematic.
