Solar Power’s Boom Is Sparking a Silver Crisis as it causes a Silver Shortage
The solar power industry is growing rapidly as the world shifts to clean energy. For instance, solar panels, which are central to this trend, depend on silver to function effectively. However, the fast rise of solar power is creating a silver shortage, sparking concerns about costs and sustainability. This situation indicates that the boom in solar power is indeed sparking a silver crisis. In this blog, we explore the issue.
Why Silver Is Key for Solar
Silver conducts electricity better than any metal, so it’s essential for solar panels. Specifically, each panel uses about 20 grams of silver. As a result, with solar power booming—global capacity hit 1,419 GW in 2024, according to the International Energy Agency—silver demand is soaring. Moreover, the Silver Institute predicts solar will consume 20% of the world’s silver by 2027, up from 14% in 2023. This surge in demand highlights how solar power’s boom is indeed sparking a crisis for silver resources.
The Silver Supply Issue
Unfortunately, silver mining can’t keep up. For example, the world produced 830 million ounces in 2024, with little growth expected. Additionally, most silver comes from copper and zinc mines, which makes it hard to increase supply. On top of that, recycling old panels only recovers 25% of their silver. Consequently, this gap between supply and demand is driving silver prices higher, reaching $32 per ounce in April 2025, a 10-year high. Therefore, the ongoing silver issues emphasize the boom in solar power that contributes to this crisis.
How This Impacts Solar Power
Therefore, higher silver costs could make solar panels more expensive. In response, companies are exploring options like using copper or less silver, but these aren’t as effective yet. Thus, for buyers, especially in poorer countries, pricier panels might slow solar growth. The evident boom in solar power has undoubtedly contributed to sparking discussions about the silver crisis.
What Can Be Done?
To address this, we need action. Specifically, better recycling, new tech that uses less silver, and stronger supply chains can help. Furthermore, governments could support greener mining to boost silver supply without harming the environment. Only through innovative approaches can we mitigate the effects of solar power’s boom sparking such a crisis on silver resources.
In conclusion, the solar power boom is exciting for clean energy, yet the silver shortage poses a challenge. By acting now, the industry can keep growing. Follow our blog for updates on solar power and resource issues.
