Silver Demand Fades as Solar Industry Cuts Back on Precious Metal

Silver's solar demand boom is showing signs of slowing down as high prices become a burden for manufacturers. Global silver demand from the solar industry is expected to drop in 2026 for a second straight year, according to estimates by BloombergNEF.

The solar industry has been a major driver of silver demand in recent years, but with silver now accounting for about a fifth of a solar module's production cost, manufacturers are looking for ways to reduce their reliance on the precious metal. This is down from a peak seen during a price spike in January, but still above the 3% to 5% that prevailed before 2024.

Solar panel makers are pressing forward with efforts to cut the amount of silver in their products, which could further reduce demand for silver. The impact on prices remains to be seen, as it will depend on various factors such as supply and demand dynamics.