7/30/2019 The Silver Demand Push From Solar Panels
1/3
Solar Panels Creating Silver Bulls!!
The Fukushima disaster in Japan led the authorities to think of
alternative ways to reduce dependence
on nuclear power which meets about 30% of Japans power
requirements. In June 12 Japans Industry
Minister Yukio Edano set a premium price for solar electricity
thats about triple what industrial users
now pay for conventional power. This premium is expected to push
Japanese utility companies to solarpower.
Photovoltaic technology (PV) is used for generating solar power
and a typical solar panel uses about 20
grams of silver. It may be interesting to note that relatively
speaking a laptop uses about 750mg and a
cell phone about 250mg of silver. It is estimated that silver
used in solar panels has arisen @50% per
annum since 2000. The demand was 60 million ounces in 2011
increasing from about 1 million ounce in
2002 (one ounce = 28 grams) constituting about 11% of the total
industrial demand (excluding jewelry).
Germany is the largest user of solar panels accounting for 27%
of the installations. But there have been
subsidy cuts which has reduced the solar panel capacity to 7.5
gigawatts but made up by increased
usage by China, Italy, France UK, Japan & US. Global
analysts had predicted a fall in silver demand for
solar panels in 2012 due to this and predicted n oversupply due
to excess production in China.
However the Japanese announcement seems to have changed the
landscape as it means a great thrust
for the solar panel industry as the utility companies will pay
42 yen (53 cents) a kilowatt-hour for 20
years to solar power producers, almost twice the rate in
Germany. This many in the know of things say is
very attractive. Germany plans to offer 0.14 to 0.19, or 17 to
24.6 cents, per kilowatt-hour, depending
on size. Italys rate is 0.13 to 0.24.
According to Bloomberg New Energy Forecast this may provide at
least USD 9.6bn in fresh installation
equivalent of 3.2 gigawatts of capacity which is equal to output
of three atomic reactors. Only China will
exceed Japan in terms of solar capacity growth as it supplants
Italy and Germany, which held the top
two positions in 2010 and 2011, according to them. According to
experts Japan could see 28 gigawatts
of solar capacity installed by 2020 and 50 gigawatts by
2030.
At the moment there are two main solar panel technologies on the
market. The traditional one is "thick
film," where silver is the main component. The other one is a
less-expensive "thin-film" method which
replaces silver with another material, cadmium telluride. The
development of thin-film solar panels has
picked up due to its lower price, but the technology is less
effective. Thick film is more efficient in
gathering energy from the sun, and this type of panel still
prevails on the market. It is reported that it
accounted for roughly 91% of total installations last year, and
analysts expect thick-film panels to
maintain their dominance for at least the next several years.
Further, both panel types use silver outside
of the cell for reflectivity and other functions, so the odds of
silver being eliminated from solar panels
entirely are very low at this time say the experts in the
field.
The thrust in for greener energy is worldwide and many countries
have announced plans for solar power
reports say 102 countries have announced programs as against 18
two years ago. However investors
should take note that much of the investments in the solar power
has happened due to government
subsidies in most countries and is therefore subject to change
in government priorities and fiscal
condition.
However silvers industry usage with new technologies has
acquired multiple dimensions. Some of the
uses as per the above referred experts are:
7/30/2019 The Silver Demand Push From Solar Panels
2/3
Solid-state lighting (SSL), which uses semiconductors to produce
light with either light-emittingdiodes (LED) or organic
light-emitting diodes (OLED), rather than the more traditional
electrical
filaments. SSL is used in traffic lights and some car
headlamps.
Radio frequency identification (RFID) uses printed silver ink
made from silver nitrate. RFID chipshave become so ubiquitous; it's
hard to find any new product that doesn't have at least one
even if that's only in the security tag affixed to the package.
Super-capacitors and superconductors, auto-catalysts and new types
of more effective batteries. Medical applications like aseptic
coverings for surgery, traumatic wounds, antibacterial
bandages and fabrics, dental amalgam, and silver salts that help
prevent infections in newborns.
It's also used as a cure for dermatological problems and certain
types of cancer.
Water purification systems, washing machines, air conditioners,
and refrigeration. NASA usedsilver to sterilize recycled water
aboard the space shuttle.
Food packaging and preservation. Manufacturers of commercial ice
machines are using silver-embedded hoses, clamps, pipe fittings,
and other places where gunk can build up and harbor
bacteria. Meat processors use silver-embedded tables, grinders,
tools, and hooks. Silver is used
to keep fruit, vegetables, and cut flowers fresh while in
transit.
Public hygiene, such as antimicrobial protection of telephone
receivers, door handles, bed rails,toilet seats, counter tops,
children's toys, socks, underwear, bed linen, towels, etc. Other
wide-ranging consumer products used every day: makeup,
antibacterial soaps and
kitchenware, hand and air sanitizers, and facial creams and
masks.
The growing applications of silver in industrial fabrication
appear to be bringing in a structural shift in its
demand.
