The Solar Surge

In May 2025, China’s solar output hit 432TWh, already surpassing its total for all of 2022. Battery installations are catching up fast too, rising from just 5% of solar capacity in 2020 to a projected 60% this year.

As Katusa Research put it: “The sun has won.”

The Sun Has Won

In 2020, battery installations were less than 5% of solar installations.

In 2025, they’re expected to hit 60%

Or the equivalent capacity of ALL solar installed in 2023. https://t.co/qYIJsjQOhT

— Katusa Research (@KatusaResearch) June 20, 2025

But this energy boom comes with a cost. Each solar panel contains about two-thirds of an ounce of silver. As installations increase, demand for the metal does too. Meanwhile, global mine production rose just 0.9% last year. Recycling is up, but nowhere near enough to cover the gap.

The Silver Institute reports that while overall demand dipped 3% in 2024, industrial use hit a record high, largely thanks to solar and electronics. Investment demand may have softened, but the structural squeeze is building. By 2026, solar alone could require over 100Moz annually, more than the entire global shortfall.

And this is happening as macro headwinds turn tailwinds. Silver thrives in volatility. Inflation remains sticky, rates unstable, and geopolitical tensions high. A weakening US dollar only adds fuel to the fire.

With silver's role expanding in industrial use, and its status as a crisis hedge intact, it’s facing twin demand pillars — industrial and monetary.  As the world races to solar, silver may quietly become the most critical and underpriced metal in the clean energy story.