Solar photovoltaic (PV) modules have become one of the most widely used sources of electricity over the past two decades. In the last five years, the industry has experienced exponential growth, making solar energy increasingly competitive with other renewables such as hydropower and wind. According to the International Energy Agency (IEA), solar photovoltaics are projected to surpass all other renewable energy sources by 2030. Currently, solar energy accounts for 6.8% of global renewable energy production.
The signing of the Paris Climate Agreement marked a turning point for renewable energy demand. As part of efforts to curb global temperature rise, signatory countries committed to reducing carbon emissions and greenhouse gases. Initially, hydropower and wind energy gained momentum, but solar power has rapidly caught up, driven by ease of installation and cost-effectiveness.
What began with rooftop solar installations has expanded into the development of large-scale solar parks. In just the past two years, China has installed an impressive 470 GW of solar power—far exceeding its total capacity from the previous decade. Major European economies, led by Germany, added 89 GW during the same period, while the United States installed 81 GW. Meanwhile, emerging markets such as India and Brazil are also making rapid advancements in solar capacity expansion.
Silver in Photovoltaics
Silver is widely recognised for its exceptional electrical and thermal conductivity, making it a crucial component in photovoltaic (PV) cells. The use of silver paste in conductive layers significantly enhances the energy output of solar cells, while the metal’s corrosion resistance ensures the longevity of solar panels, even in extreme temperatures and high-humidity environments.
In 2023, silver demand for solar panels reached approximately 197 million ounces (Moz)—a 77% year-on-year increase. This upward trend continued into 2024, with total demand estimated at 257 Moz, marking an additional 31% growth from the previous year.
The massive expansion of solar capacity over the past two years signals a strong global shift toward green energy, with many nations still in the early phases of this transition. In the United States, total solar power capacity now stands at around 210 gigawatts (GW), supplying approximately 6% of the country’s electricity. The US government’s goal of achieving carbon neutrality by 2035 is expected to accelerate the expansion of solar infrastructure further.
Similarly, Europe’s climate commitments and efforts to reduce dependence on foreign energy sources suggest continued growth in solar adoption. Meanwhile, India has set a target of adding 500 GW of renewable energy capacity by 2030, having already developed 64 GW of solar power, eying 100 GW by the end of 2025. Current projections indicate that this could rise to 300 GW by the end of the decade.
The massive expansion of solar capacity over the past two years signals a strong global shift toward green energy, with many nations still in the early phases of this transition.
With a compound annual growth rate (CAGR) of 16%, silver demand for photovoltaic technology is projected to reach 546 Moz by 2030. This rapid increase in industrial demand, primarily driven by solar energy expansion, has already contributed to a market deficit of 184 Moz in 2023.
As solar power adoption accelerates, this supply deficit is expected to widen further, raising concerns about the long-term availability and pricing of silver for renewable energy applications.
