Global silver demand from the solar PV industry is set to decline in 2026 as manufacturers continue to reduce silver use through thrifting and substitution efforts
Total silver industrial fabrication is forecast to fall 2% this year to about 650 million ounces, a 4-year low, mainly due to lower solar demand
Reduced solar demand will be partly offset by higher silver use in data centers, AI-related technologies, and automotive applications
Global solar demand for silver is set to decline in 2026 thanks to the industry’s ongoing efforts to reduce its use with ‘ongoing thrifting and outright substitution’ away from silver, according to The Silver Institute.
It forecasts silver industrial fabrication to decline by 2% this year, to a 4-year low of around 650 million ounces (Moz). The major driver of this decline will be the solar industry’s efforts to lower silver use in cell production, with the growing use of copper.
Buoyed by rapidly expanding demand and rising customer interest, the price of this precious metal shot through the roof, breaching the ‘psychologically important’ $100/oz level for the 1st time ever, exceeding even the $117/oz level on January 27, 2026. Several other factors, including geopolitical factors, increasing gold spot prices, and China’s silver export licensing rules, also played a role (see Silver Prices Cross A Record $110/oz In January 2026).
Since then, its price has dropped to under $80/oz and has risen by 11% as of February 9, 2026. The projected decline in the solar PV industry’s silver demand will be partially offset by the growing use of silver in other industrial end uses, particularly data centers, artificial intelligence-related technologies, and the automotive sector, says the institute.
This will keep the global silver demand largely unchanged this year. In addition, tight supply and geopolitical and policy uncertainty ensure its fundamentals will remain strong. The Silver Institute expects the market to stay in deficit for a 6th straight year in 2026.
As a major consumer of silver, the solar PV industry has been on its toes to reduce its use in solar cell manufacturing. Primarily, it has been exploring the use of silver-coated copper or pure copper as the electrical conductor.
Precious metal prices are likely to be supported by the global economic and geopolitical environment in 2026, with tight physical supply in the London silver market. The institute adds that strong macro conditions and expected gold price strength should limit downside risks for silver; however, price volatility is likely to continue.
The Silver Institute will release details on the international silver market in its annual report, World Silver Survey 2026, to be published on April 15 this year.