Archive · 3 Jan 2026
Chinese PV Panel Makers May Hike Prices Due to Soaring Silver
Chinese companies that make solar panels are thinking about raising prices or making fewer panels because silver, which is used to make these panels, has become much more expensive.
Silver is a very important part of making solar panels, and its price has gone up a lot in the past year.
This makes it more costly to produce solar panels.
Some companies are trying to use less silver or find other materials to save money.
The price of solar panels has already gone up by 28% in the last few weeks.
The companies are also trying to be careful with their money by not buying too many raw materials or building up too much inventory.
The Silver Institute says that the use of silver in solar panels is very important, but they are trying to find ways to use less of it.
Chinese PV panel makers plan to hike prices or cut production due to soaring silver prices.
Silver prices have increased one-and-a-half times in the past year, reaching nearly $74 an ounce.
The production cost of standard solar cells has increased by at least 0.06 yuan (₹0.77) per watt to 0.33 yuan (₹4.25) over the past three months.
Silver paste accounts for 40% of the production cost of solar cells and 11-14% of module cost globally.
Some Chinese firms have hedged their risks, while others have cut purchases of raw materials and stopped building inventories.
- Who
- Chinese manufacturers of solar photovoltaic (PV) cells or panels
- What
- Plan to hike prices or cut production due to soaring silver prices
- When
- During the current quarter
- Where
- China, which dominates global solar panel manufacturing
- Why
- To offset the increased production costs caused by the rise in silver prices
- Silver Price Increase
- Spot silver prices have gained one-and-a-half times in the past year, reaching nearly $74 an ounce.
- Silver Usage in PV
- Silver recorded a record high of 197.6 million ounces in the PV sector last year.
- Production Cost Impact
- Production cost of standard solar cells increased by at least 0.06 yuan (₹0.77) per watt to 0.33 yuan (₹4.25) over the past three months.
- Silver Paste Cost
- Silver paste accounts for 40% of the production cost of solar cells and 11-14% of module cost globally.
- Industry Capacity Utilization
- The utilization of the PV industry’s capacity is below 60%.
- Price Increase
- Solar cell prices have been raised by 28% over the past couple of weeks.
- Silver Demand Forecast
- The Silver Institute estimates a 1% fall in demand for silver from the PV sector to 195.7 million ounces this year.
- Silver Deficit
- The market balance is projected at a deficit of 187.6 million ounces for the seventh year in a row in 2025.
