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This graphic highlights the correlation between the growth rate of solar PV electricity capacity additions, the demand for silver used in photovoltaics, and the price of silver from 2016 to 2024F.
The rapid expansion of solar photovoltaic (PV) capacity is driving a sharp increase in the demand for silver, as the metal is crucial in enhancing the efficiency of solar panels. Silver plays a key role in PV applications by conducting electricity, with each solar panel containing approximately 20 grams (0.643 ounces) of silver.
In 2023, the demand for silver used in solar PV cells surged to 193.5 million ounces, and it's projected to reach 232 million ounces in 2024. This accounts for 16-19% of total silver demand compared to 5.59% in 2015 and highlights the growing interconnection between solar energy and silver demand.
IEA forecast: Solar capacity is set for remarkable growth. Global solar photovoltaic capacity additions are projected to reach 467 GW in 2024, marking a 460% increase compared to 2015 levels. Additionally, The International Energy Agency (IEA) forecasts that from 2024 to 2030, over 4,000 GW of new solar capacity will be added, comprising 80% of the total renewable capacity expansion. China is expected to lead this growth, contributing 60% of new installations, followed by the EU and the U.S., where growth rates are expected to double.
Several factors are fueling this boom:
Cost Reduction: Solar technology has become more affordable, making it highly competitive in energy markets.
Government Support: Incentives and policies are driving widespread solar adoption.
Energy Transition Goals: Many countries aim to meet their climate targets by accelerating solar energy deployment.
Technological Advancements: More efficient solar panels are increasing capacity while lowering overall costs.
As solar PV capacity continues to expand, the demand for silver is poised to grow further, solidifying the close relationship between these two critical components of the green energy transition.
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The Silver Institute is a global organization dedicated to promoting the use, study, and understanding of silver. It provides in-depth research on silver’s supply, demand, and pricing trends across various industries such as industrial applications, jewelry, investment, and solar energy. One of the institute’s key publications is the World Silver Survey, an annual report that offers detailed statistics and analysis on the global silver market.
For further information, you can visit the official Silver Institute website.
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