A 28% spike in silver prices since late 2025 has intensified financial pressure on solar panel manufacturers, many of which operate with slim margins. Companies reliant on silver paste for photovoltaic cell production are facing higher input costs just as global demand growth slows.
- Silver prices rose 28% from $29.90 to $38.40 per ounce between December 2025 and January 2026
- Silver accounts for up to 15% of production costs in certain solar panel models
- Canadian Solar reported a $185 million net loss in Q4 2025, compared to a $42 million profit in Q3
- JinkoSolar's gross margin fell to 12.3% in Q4 2025, below the 15% sustainability threshold
- Manufacturers are testing copper and aluminum as alternatives, but scalability and performance remain challenges
- Global solar panel pricing remained flat despite rising input costs, limiting ability to pass costs to buyers
Silver prices reached $38.40 per ounce in early January 2026, up from $29.90 in December 2025, marking the sharpest increase in over three years. This surge has directly impacted solar manufacturers that use silver paste in the production of silicon photovoltaic cells, with silver accounting for up to 15% of total production costs in some panel models. Companies such as Canadian Solar Inc. (CSI) and JinkoSolar Holding Co. Ltd. (JKS) reported a 7–10% rise in raw material expenses during Q4 2025, despite efforts to reduce silver usage through thinner coatings and alternative materials. The cost increases were not offset by higher selling prices, as global solar panel pricing remained flat due to oversupply in the Chinese and European markets. As a result, several mid-tier solar panel producers reported net losses in the final quarter of 2025. Canadian Solar posted a net loss of $185 million, a reversal from a $42 million profit in Q3, while JinkoSolar saw its gross margin shrink to 12.3%—below the 15% threshold often considered sustainable for long-term operations. Market analysts note that the silver rally, driven by strong industrial demand and increased investment in precious metals, is unlikely to subside soon. This has prompted some manufacturers to explore alternative conductive materials like copper and aluminum, though these remain in pilot stages and carry performance risks under high-temperature or high-humidity conditions.