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Solar silver thrifting not enough to curb demand

Soaring silver prices and strong solar demand are forcing photovoltaic manufacturers to cut silver loadings (thrifting) and explore copper substitutes, but analysts say those gains likely won’t offset a multi‑year structural supply squeeze. The Silver Institute’s World Silver Survey 2026 projects a 46.3m oz. annual deficit; silver briefly hit about $120/oz in January (from ~$30 a year earlier) and traded near $74/oz on June 4–5, 2026. Photovoltaic silver use fell 6% to 186.6m oz. last year and is forecast to drop about 19% to ~151m oz. in 2026 as manufacturers adopt zero‑busbar, ultra‑fine printing and TOPCon cells. China remains the swing factor — it supplies ~80% of solar manufacturing — and US policy, tariffs and subsidy rules are reshaping buildouts and financing. While thrifting reduces metal intensity and may slow PV demand growth, broader industrial demand (grid, auto, AI power) and persistent deficits leave upside pressure on silver prices.

Category

Silver

Sentiment

Bullish

Event

Market commentary

Reading time

1 min