Soaring Silver Prices Force Solar Makers To Rethink Materials

Longi Green Energy Technology is set to revolutionize solar cell production by reducing its dependence on silver. They plan to begin large-scale production using cheaper base metals starting in the second quarter. This move is driven by rising material costs and falling profit margins within the solar industry. Surging silver prices have made it the most costly component, creating significant challenges for manufacturers. Silver prices nearly tripled last year, causing the metal to represent a large portion of module costs. Other companies like Jinko Solar and Shanghai Aiko Solar are also embracing base metal alternatives. Longi's back-contact solar cell technology offers more flexibility in replacing silver than the prevalent TOPCon technology. However, switching to base metals brings assembly cost increases and reliability concerns. Despite these challenges, the solar industry's silver demand is projected to decrease while solar installations continue to increase globally. This shift signifies a broader trend in the solar industry to reduce costs and improve competitiveness.