Silver's Solar Paradox: Using Less, Still Running Short

The article argues that silver’s bullish long-term supply-demand case remains intact even as the solar industry sharply cuts silver usage per panel. Solar photovoltaic demand fell 6% in 2025 and is forecast to drop another 19% in 2026 as manufacturers thriftily reduce silver loadings and experiment with copper substitution. However, the author says these efficiency gains do not end solar demand, and substitution is still limited by reliability issues and the dominance of TOPCon cells. Despite the solar pullback, the silver market is still projected to post its sixth consecutive annual deficit in 2026, about 46.3 million ounces. The piece frames the solar slowdown as a response to higher silver prices rather than a structural demand collapse, suggesting the market remains tight even after the biggest industrial buyer economizes. Near-term macro moves and rate expectations may pressure price volatility, but the broader shortage narrative stays supportive.