Silver-Saving Efforts Ramping up in Solar Industry, Says Heraeus
•February 16, 2026
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Why It Matters
The cost squeeze threatens margins and could reshape material sourcing across the solar supply chain, influencing investment and pricing strategies industry‑wide.
Key Takeaways
- •Silver prices up 187% since early 2025.
- •Silver paste makes up to 30% of cell cost.
- •PV demand fell 30% after 2011 price spike.
- •Manufacturers testing copper metallization for cost reduction.
- •Longi plans mass‑production copper cells this year.
Pulse Analysis
Silver prices have surged to an all‑time high, remaining 187 % above early‑2025 levels. Because silver paste can represent up to 30 % of a photovoltaic cell’s bill of materials, the price spike directly squeezes manufacturers’ already thin margins. The cost pressure arrives amid a market characterized by excess capacity, falling module prices, and modest growth in new installations, prompting firms to re‑evaluate their metallisation strategies. Furthermore, the volatility complicates long‑term pricing contracts, forcing manufacturers to adopt hedging strategies or pass costs to downstream developers.
The industry’s first major silver‑reduction wave occurred after the 2011 $50‑per‑ounce spike, cutting photovoltaic silver demand by roughly 30 % while global installations doubled. Since then, incremental gains have been harder to achieve, but copper is emerging as the most viable substitute. Copper works well in back‑contact cell architectures, yet integrating it into conventional top‑contact designs poses metallurgical and reliability challenges. Companies such as Longi and DK Electronic Materials are leading pilot programmes, with Longi targeting full‑scale copper‑based production this year. Research into copper‑silver alloy pastes aims to combine conductivity with lower material cost, though scaling these formulations remains a technical hurdle.
Heraeus projects photovoltaic silver consumption at about 195 million ounces last year and expects a further decline as copper substitution scales. Stable global PV installations of roughly 655 GW suggest demand growth will come primarily from material efficiency rather than capacity expansion. Investors and supply‑chain managers should monitor copper‑focused R&D, as successful integration could reshape the precious‑metal exposure of solar portfolios and create new opportunities for copper producers. Policy incentives that reward lower‑cost, high‑efficiency modules could accelerate copper adoption, while trade policies affecting silver imports may further influence manufacturers’ material choices.
Silver-saving efforts ramping up in solar industry, says Heraeus
Rising silver prices are putting pressure on solar manufacturers, prompting greater focus on copper and other alternatives to reduce costs. Heraeus says it expects silver demand from photovoltaics to decline this year despite stable global installations.
Rising silver prices are causing concern across much of the solar industry. In a recent report, Heraeus said that despite some recent declines, silver remains 187% higher than at the start of 2025.
Silver paste accounts for up to 30% of total solar cell costs, creating a difficult environment for manufacturers already facing overcapacity, falling module prices and squeezed margins. Companies are exploring alternative metallization technologies and other ways to reduce silver consumption.
Heraeus noted that cutting silver use is not straightforward. In 2011, when silver reached $50 per ounce, manufacturers intensified cost-cutting efforts and sought alternatives. Over the following three years, silver demand in photovoltaic applications fell by about 30%, even as global solar installations nearly doubled. Demand did not return to 2011 levels until 2016, by which time the global silver market had nearly tripled.
Photovoltaic manufacturers are increasingly evaluating copper as a substitute. Heraeus cautioned that technical challenges remain and that further reductions are harder to achieve, given the significant savings already made since 2011. Copper performs well in back-contact cells, which still represent a small share of the market. Using copper in conventional top-contact cells is more complex. Longi has announced plans to switch to copper-based metallization for mass production this year, while DK Electronic Materials is developing high-copper solutions. For large-scale top-contact manufacturers, silver-coated copper paste may offer the most viable path.
Heraeus estimates that silver demand in photovoltaics reached around 195 million ounces last year. With global PV installations projected to remain stable at about 655 GW, silver demand from the sector is expected to decline further as substitution efforts continue.
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