Base Metals Replace Silver in Solar Manufacturing as Industry Faces Record Price Pressures

The solar photovoltaic (PV) sector is undergoing a significant technological transformation as manufacturers worldwide pivot toward copper and other base metals alternatives. This shift stems from silver prices reaching unprecedented levels—hitting US$93.77 per ounce in mid-January 2025, roughly double the price from just four months prior and nearly 200 percent higher than the previous year.

The Silver Cost Crisis in Solar Production

Silver’s role in solar panel manufacturing has become increasingly expensive. According to Bloomberg NEF analysis from September 2025, silver comprises approximately 14 percent of total production costs for solar modules—a dramatic escalation from just 5 percent in 2023. The metal’s exceptional electrical and thermal conductivity made it indispensable for photovoltaic cells, but soaring prices have fundamentally altered the economics of solar manufacturing.

The imbalance between supply and demand has intensified as the solar industry became one of the world’s largest industrial consumers of silver. This competition with electronics and investment sectors has created unsustainable cost pressures for panel manufacturers operating in an already margin-constrained industry. In response, leading manufacturers are exploring technological innovations and base metal substitutes to manage input costs while maintaining production efficiency.

Chinese Manufacturers Lead the Transition

China, which controls more than 80 percent of global solar manufacturing capacity across polysilicon, wafers, cells, and modules, is spearheading this technological shift. LONGi Green Energy Technology announced plans to begin mass production of solar cells using base metals instead of silver starting in Q2 2025. This move by one of the industry’s acknowledged technology leaders signals a structural industry transformation rather than an isolated response.

Other major Chinese manufacturers have followed suit. JinkoSolar Holding, listed on the US stock exchange, declared intentions to scale production of silver-free solar panels. Shanghai Aiko Solar Energy is already producing 6.5 gigawatt solar cells without silver. These parallel efforts among industry leaders suggest a coordinated shift toward new manufacturing paradigms.

Copper Emerges as the Primary Alternative

Among base metals, copper has emerged as the preferred substitute. Despite silver trading at approximately 22,000 percent higher per troy ounce than copper, the red metal offers compelling advantages: superior abundance, lower cost, and a more diversified, resilient supply chain. These characteristics align with industry goals to scale production without exposure to critical raw material bottlenecks.

However, copper presents technical challenges that manufacturers must overcome. The metal’s slightly lower conductivity compared to silver raises durability concerns, particularly regarding oxidation and long-term reliability of copper-based components. The fabrication requirements for tunnel oxide passivated contact (TOPCon) cells—currently dominating solar technology—demand high temperatures that complicate copper integration.

Back-contact (BC) cell technology offers a more viable pathway for copper adoption. This alternative solar architecture simplifies the technical adaptation process compared to TOPCon configurations. New copper-metallized cell generations are achieving efficiency levels approaching traditional silver-based designs, with some applications showing improvements in mechanical strength and module durability—critical factors for long-term installations in demanding environments.

Field data demonstrates that BC modules can generate up to 11 percent more energy over their operational lifetime compared to TOPCon technology, strengthening the economic case for this transition.

Market Impact and Timeline Considerations

The Silver Institute projected that industrial silver demand would decline by 2 percent in 2025 to 665 million ounces. The solar sector alone is expected to reduce silver consumption by approximately 5 percent annually despite record-high global PV installations. This reduction reflects sharply lower silver usage per module as manufacturers adopt base metal solutions.

However, the transition timeline remains gradual. TOPCon cells are projected to account for 70 percent of market share through 2026, while BC cell manufacturing costs are not expected to reach price parity with TOPCon technology until the decade’s end. Industry analysts anticipate a coexistence period for both technologies extending through 2028-2030, during which the solar industry continues optimizing copper-based architectures and supply chains.

This extended transition period provides an opportunity for the broader renewable energy ecosystem—including used solar panels and equipment refurbishment—to adapt to evolving material compositions and recycling protocols. As the industry standardizes on lower-silver designs, both new manufacturing and lifecycle management of installed capacity will reflect these material science advancements.

The shift from silver to copper-based solar cells represents not merely a cost optimization strategy, but a fundamental evolution in how the solar industry designs, manufactures, and sustains its production infrastructure for the coming decade.