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The article provides information about increased prices of silver and its influence on solar world. One should know basic things before planning to invest in solar panels. Increasing prices of silver is a headache for solar industry. According to the surveys, it has been declared that the solar panel makers use around 11% of the world’s silver supply. One reason is that it is a major element that helps to conduct electricity in solar panels. Market studies say that silver price is soaring at high-speed. It has touched 74% to $35.30 a troy ounce on average from $20.24 last year’s cost. Market scenario depicts that increased prices on silver have greatly influenced solar market where prices of solar cells have dropped up to 27%. The prices will become lesser if each solar panel will not contain around 20gms of silver. Such things have completely affected solar panel production in companies such as Solarworld AG (SWV) and LDK Solar Co. which are well-known to provide solar power at competitive rate. The chief executive of the Canadian Solar Inc. (CSIQ) Shawn Qu stated that Silver plate is used as the front-side contact material in solar cells. Increased silver prices have enhanced a challenge to provide solar cell at cost-effective price. In June, the solar panel prices were estimated to reduce from $1.80 to $1.49, but the market didn’t support favourable situation even thought after increasing production and reducing incentives. As a result of rising silver prices, many companies have planned to reduce silver consumption. Qu stated that Canadian Solar uses silver paste to make circuit used on the front of its solar cell. Therefore, increasing prices of silver have added increment from 25% to 4% in the cost of solar panels. Because of soaring prices, the Company’s margins are getting affected to 17% plus as compared to its cost of production. In April 2011, silver prices touched about $48.44 an ounce. But now the prices have dropped down like anything. But in future, if silver prices again start shooting up like earlier, the companies will have to add from 13% to 15% of extra cost in the producing a single solar panel. According to the Washington-based trade group Silver Institute, the supply of silver has increased from 922.2 million to 1.06 billion. In recent times, the solar company is trying to reduce its silver consumption. Some of the companies are trying to use thinner wiring in solar cells. These thin-film solar panels will give tough completion to those companies that manufacture high-film solar panels. To replace silver, a spokesman in the First Solar Inc. (FSLR) said that the company has manufactured a solar cell with cadmium-telluride rather than the polysilicon used in typical photovoltaic cells. Efforts have been taken to reduce increasing silver prices. One reason is that the customers have to bear at the end. Kyles Humphrey is an experienced journalist in silver market, mining & stocks, who frequently writes articles related to silver prices, silver spot price including tips on investment in silver. Please visit silverprices.com for more details.
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