Earlier this month, Israel’s Ministry of Energy mandated the installation of solar systems on new non-residential buildings and residential detached homes.
This is expected to bring tens of thousands of renewable energy facilities to the country by 2024 — and is just another example of the global support for solar power moving forward.
Many may not be aware of the impact these renewable energy facilities have had on the demand for silver.
Making up for photography loses
Thanks to the shiny metal’s electrical conductivity, silver paste is applied to photovoltaic cells during the manufacturing process. When sunlight hits the solar panels, silver ensures minimal energy loss and maximizes the panel's output.
The demand for silver in the solar industry has nearly tripled since 2014, which has helped to offset a reduction in demand for photography. While the use of film has been all but nonexistent for more than a decade, silver’s solar demand continues to grow exponentially.
Solar appetite for silver expected to rise
In 2023, solar accounted for 14% of the precious metal’s total demand.
A research paper published by scientists at the University of New South Wales estimated solar manufacturers will need 20% of the annual silver supply by 2027. By 2050, solar panel production could use 85% to 98% of the supply, the report claimed.
Thanks to governments around the world subsidizing the public's use of solar energy, demand is unlikely to drop soon.
China leads the way
China, though a latecomer to the solar boom, has shown the biggest commitment to the alternative energy. By 2013, it was outproducing solar panels when compared to Europe and, in 2017, it became the world leader in established solar facilities.
Economists have speculated China’s solar boom has been supported by its focus on rapid development and construction.
More — and less — demand
Due to technological advances in the solar panel industry, the amount of silver used in individual cells has decreased steadily since 2009, though the downtrend shows signs of leveling off. In 2009, an average of 521 mg of silver per cell was used, compared to 130 mg per cell in 2016. Since 2018, the amount used per cell has only averaged a 6 mg drop annually.