Solar photovoltaic manufacturing consumed 198 Moz of silver in Q1 2026, a quarterly record that represents 61% of total industrial silver demand, according to the Silver Institute. Global solar installations reached 75 GW in Q1, up 18% year-on-year, with China accounting for 48 GW.
Thinning of silver paste layers continues — PERC cells now use approximately 12.5 mg/W, down from 12.9 mg/W a year ago — but total silver consumption still rises as installation volumes grow 18% annually. The intensity reduction is roughly 3% per year, insufficient to offset 15-20% volume growth.
Heterojunction (HJT) cells, which use approximately 20-25 mg/W, are gaining market share and now account for an estimated 8% of new capacity. TOPCon cells, the current mainstream technology, use approximately 13-15 mg/W. Silver demand per watt is not declining fast enough to cap total consumption.
China's PV exports rose 12% YoY in Q1 to 28 GW, with Europe maintaining its position as the largest importer at 12 GW. India's PV manufacturing expansion added 4 GW of domestic cell capacity in Q1, all of which requires silver paste for front-side metallization.
On the supply side, above-ground silver inventories held by major exchanges — COMEX, SHFE, and LBMA — declined to approximately 35,000t at end-Q1, down from 37,500t a year earlier. The drawdown is consistent with sustained industrial consumption exceeding mine supply.
Silver buyers with solar supply chains should secure H2 2026 volumes now. The Q1 price dip does not change the structural deficit story. Above-ground inventories are declining steadily. Consider 12-month fixed-price contracts for PV manufacturing inputs.