Summary: Solar panel producers are intensifying efforts to replace silver with lower-cost alternatives, notably copper, after a dramatic rise in silver prices sharply increased manufacturing costs. Companies and analysts say the move could deliver substantial savings for the sector, but technical differences between silver and copper mean change will be challenging.
Manufacturers and industry specialists say silver has been a major driver of higher panel costs after the metal’s price climbed steeply over the past year. "Silver is the greatest contributor to the increased cost of manufacturing solar panels," said Derek Schnee, senior commercial solar consultant at JK Renewables. Schnee also noted that the cost of solar panels has increased 7-15% over the last 12 months.
Silver paste, a critical input for photovoltaic cells, now represents a substantial share of cell production expense. Analysts at Heraeus estimate silver paste accounts for 30% of total solar cell costs.
Silver’s rally has been acute. Prices rose 147% in 2025 and reached an all-time high of $121.64 an ounce in January amid tight physical supply and retail-driven buying, before easing to $77 an ounce. The photovoltaic sector consumes a sizeable portion of the metal: 196 million troy ounces, or 17%, of total silver demand, industry data show. Other sources of silver demand include jewellery, electronics, and investment uses.
Cost impact on U.S. module production
In the United States, the cost contribution from silver paste on a typical 450-watt module has risen sharply. "In the U.S., silver paste costs per 450-watt module have increased from roughly $5.22 in early 2025 to about $17.65," said Ben Damiani, Chief Technology Officer at renewable power company Cherry Street Energy.
The surge in silver prices has prompted manufacturers to accelerate development and deployment of metallisation techniques that reduce or eliminate silver content.
Shift to copper gains momentum
With silver trading at the equivalent of $2.5 million per metric ton, manufacturers are increasingly looking at copper alternatives. Copper was last trading at $12,823 per ton. Long-term industry participants and researchers expect a broader adoption of copper solutions.
LONGi Green Energy Technology Co Ltd, China’s largest solar panel maker, said in January it had made advances in cost-saving technology involving base metals and intends to begin mass production between April and June.
"Broader industry shifts are expected this year, with leading manufacturers moving to pure copper metallisation and hybrid silver-copper pastes," said Marius Mordal Bakke, vice president of solar supply chain research at Rystad Energy.
Potential savings and technical limits
Because copper trades at roughly 0.5% of the price of silver, the theoretical savings from switching are large. Damiani at Cherry Street Energy estimated that replacing silver with copper-based metallisation could represent roughly $15 billion per year in savings for the sector globally, assuming 500 gigawatts of annual solar production.
However, industry experts caution that substitution is not simple. Silver has higher electrical conductivity than copper, and that difference poses engineering and reliability challenges that manufacturers must overcome when altering metallisation chemistries and production processes.
Outlook
As manufacturers pursue copper and hybrid solutions, the pace of transition will depend on resolving technical trade-offs while scaling production changes. In the near term, the combination of metal price volatility and existing overcapacity in manufacturing—particularly in China—will continue to influence margins and the cost structure of solar module makers.