Technical Analysis · Materials and Costs

17% silver in PV modules: the new math behind the 2026 BOM

📅 April 2026

⏱ Reading time: 5 minutes

🎯 For installers, EPCs, and PV distributors

Silver has risen from 3% to 15–20% of the cost of a solar module over the past three years, and accounts for up to 30% of the cell’s cost. In Q1 2026, it reached an all-time high of $121.67 per ounce on January 29. LONGi will begin mass production of copper in Q2 2026, while Aiko is already silver-free. Those who lock in prices now protect their margins for the next 12 months. Those who wait will pay the price of the increase.

What you will find in this article

The market context: the end of the “low-cost solar” era

For ten years, the story was straightforward: photovoltaic modules kept getting cheaper. In 2026, that trend came to an end. Module pricing in 2026 is being reshaped by three converging forces: trade enforcement measures blocking alternative supply chains, China’s tax cut on export VAT rebates effective April 1, 2026, and a raw materials shock centered on silver—all while cell technology evolves toward more efficient solutions.

The official video released by LONGi in recent weeks revealed the BOM (Bill of Materials) structure of a standard module. OPIS data from January 2026 confirms this with a direct message to buyers: silver has surpassed polysilicon as the single most important cost driver for photovoltaic modules.

📊 Key fact to keep in mind

Silver + silicon + glass + aluminum frame = approximately 85–92% of the BOM cost of a bifacial TOPCon module in 2026. Silver alone accounts for 15–20% of the module cost and up to 30% of the cell cost (source: BloombergNEF, OPIS, Silver Institute, April 2026), compared to just 3% in 2023. 

Anatomy of the TOPCon 2026 BOM Module: Verified Structure

Projection based on Fraunhofer ISE/NREL EU PVSEC 2024, updated with data from OPIS (January 2026), Bernreuter Research (April 2026), and ITRPV 2025:

BOM Item	% of 2026 Module Cost
Complete cell (polysilicon + wafer + silver + process)	60-65%
→ of which silver paste	15-20% (module) / up to 30% (cell)
→ of which polysilicon	10-15%
→ of which wafer + cell process	30-35%
Glass (2x for bifacial glass-glass)	10-13%
Aluminum frame	8-11%
EVA/POE/EPE encapsulant	4-7%
Backsheet or back-glass	2-4%
Junction box + connectors + ribbon	2-4%
Labor + depreciation + overhead	5-10%

1. Silver: From Commodity to Critical Variable

BloombergNEF reports: Silver has risen from 3% of the cost per watt in 2023 to 12% in August 2025, reaching 17% in October 2025. OPIS (January 2026) puts the current share at 16–17% of module cost and up to 30% of cell cost after peaking in late December 2025. The Silver Institute (April 2026) estimates the widest range at 10–20% of cell cost, with the peak reached for n-type modules with high paste laydown.

The spot price experienced extreme volatility in Q1 2026: opening at $74/oz, rallying to a nominal all-time high of $121.67/oz on January 29, 2026 (APMEX), retracing to $94 by late February, crashing to $61 in mid-March, and rebounding to $79–82 in April 2026. The Q1 2026 average is estimated between $85 and $95/oz. 2026 annual forecasts: JP Morgan $81/oz, Citigroup $110/oz in H2, BofA upside scenario $135/oz.

Consumption data: According to Metals Focus (World Silver Survey 2026, published on April 15, 2026), silver demand from the PV sector fell to 186.6 million ounces in 2025 and will decline by a further 19% in 2026 to approximately 151 million ounces. Less silver per cell, not fewer modules. This is a forced industrial response, not a choice: TOPCon unit consumption has already fallen to 86 mg/cell, down 21% year-over-year according to CPIA.

What this means for you: Over the next 6–12 months, you will find modules on the market featuring different metallization technologies (silver-coated copper, pure copper, back-contact silver-free), at varying prices, with reliability to be assessed on a case-by-case basis.

2. Polysilicon: The Quiet Resurgence

After two years of depressed prices, polysilicon is on the rise again. Bernreuter Research (April 15, 2026) reports a global average of $5.14/kg, with Chinese n-type polysilicon (ex-VAT) at around $4.30/kg. With typical consumption of 2.0–2.2 g/W, polysilicon now accounts for 10–15% of module cost, much less than the 25–30% it represented in 2022 when it was at $39/kg.

Operational sensitivity: every $1/kg increase in polysilicon pushes the module cost up by 2-3%. With Chinese production capacity consolidating (polysilicon consolidation plateau expected by the end of 2025) and the abolition of the export VAT rebate effective April 1, 2026, the downward margin has run its course.

3. Photovoltaic glass: a rebound, not a doubling

Glass consistently accounts for approximately 10% of the BOM for glass-backsheet modules and 12–14% for bifacial glass-glass modules. The price trajectory has been volatile but not catastrophic: from lows at the end of 2024 (~12 CNY/m² for 3.2 mm coated) to 22.5 CNY/m² in March 2025 (+80%), then declining in April 2026 to 16.8–18 CNY/m² due to high inventories and pressure from module manufacturers. The 2.0 mm double-coated glass for bifacial modules is at 10–11 CNY/m². On an annual basis (April 2025 vs. April 2026), glass prices are essentially stable.

4. EVA and encapsulants: up 37% year-to-date

The pressure is intense here. SunSirs (April 13, 2026) sets the benchmark for Chinese EVA at 13,350 RMB/t, up 36.69% from the start of 2026. The rally began in late February (end of the off-season) and was accelerated by the pre-April 1 export rush and upstream petrochemical production cuts. For double-sided TOPCon, the shift to EPE (co-extruded EVA-POE-EVA) or pure POE in premium products is accelerating, with water vapor resistance 7× higher. POE premium over EVA: ~0.3 cents/W.

5. Aluminum frame: 10% quieter

Aluminum accounts for approximately 10% of the BOM (HDIN Research, October 2025: global window frame market $9.0–9.5 billion in 2026). LME 3-month aluminum is stable at $2,700–2,900/t in Q1 2026 with upward pressure from general industrial demand (EVs, data centers, networks). Sensitivity: +10% LME ≈ +1% module cost.

6. The remaining 10%: Why relocating to Europe Doesn’t Cut Costs

Here’s the key point. Fraunhofer/NREL EU PVSEC 2024 compares the TOPCon module MSP by region: China 14.6 €ct/Wp, Southeast Asia 15.0 €ct/Wp (+2.7%), India 17.0 €ct/Wp (+16%), USA 27.4 €ct/Wp (+88%), Europe 24.1 €ct/Wp (+65%).

The empirical evidence lies in the China-Southeast Asia comparison: Southeast Asia has lower labor costs than China but costs practically the same as the module, because the integrated ecosystem is lacking. Photovoltaics is not a labor-intensive industry (direct labor accounts for 3-8% of module cost in China according to the DOE and Fraunhofer). It is energy-intensive and material-intensive. A modern 200 MW fully-automatic production line requires only 4 operators per shift.

This is the structural reason why direct imports from China remain the most efficient procurement strategy for the European market.

China's push toward copper metallization

The industry is reorganizing in real time around the replacement of silver:

LONGi: a filing to investors dated January 5, 2026 announces mass production of copper-back-contact cells starting in Q2 2026. Projected 2025 losses of 6–6.5 billion yuan, with copper metallization as a lever for margin recovery.
Aiko: silver-free cells already in production, initial capacity 6.5 GW. ABC (All Back Contact) technology with ultra-fast laser engraving, 0BB zero-busbar, and copper interconnection. The 60-cell Gen 3 ABC launched on March 11, 2026, reaches 545 W with an efficiency exceeding 25%.
JinkoSolar: aiming for large-scale production with base metals by 2026, but the challenge is greater because Jinko’s dominant platform is TOPCon (less compatible than BC with copper in high-temperature processes).

For buyers over the next 18 months, this means a two-speed market: silver-free BC modules (price premium but zero marginal silver cost) and traditional TOPCon modules (dependent on the spot price of silver).

What is happening to module prices in Q1–Q2 2026?

USA (Q1 2026 – Anza Renewables): median price $0.28/W compared to $0.25/W in early 2025. TOPCon at $0.285/W, HJT at $0.39/W, US residential modules with IRA-compliant US cells at $0.46/W.
China FOB (OPIS, March 2026): rebound from December 2025 lows ($0.086/W) to $0.120/W in March 2026, with a pre-April 1 export rush to avoid the abolition of the VAT rebate.
Chinese export VAT rebate: reduced from 9% to 0% effective April 1, 2026, on wafers, cells, and modules (announcement by the Chinese Ministry of Finance and State Taxation Administration on January 9, 2026). Estimated impact of 3–10% on export prices, partially already priced in.

📊 STRATEGIC READING

This is not a temporary spike. It is a permanent restructuring of the photovoltaic cost curve. Anyone planning procurement for 2026 based on the “wait and buy low” approach is working with a market model that no longer exists.

PVclick's solution: Protect your margins with direct imports

In a market where module prices are rising due to structural factors upstream, the only remaining lever for competitiveness lies in reducing all costs downstream: intermediaries, local warehouses, and distribution markups.

The PVclick model is designed precisely for this scenario. Direct purchasing from bankable Tier 1 manufacturers (LONGi, AIKO, Jinko, Canadian Solar, Trina, JA Solar), zero intermediaries, an Italian team handling customs, logistics, WEEE, and contracts. Two service options:

Factory Connect: the most competitive price possible; you handle customs and domestic transport. For those who already have a logistics structure and want maximum savings.
All Inclusive: we handle everything, from the Chinese factory to your construction site. For those who want zero operational worries.

In both cases, you’re buying at factory price, not at the Italian distributor’s list price. With BOM costs rising, every percentage point in the distribution chain becomes a margin point you either lose or gain

3 Things to Do This Quarter

Map out your 2026 module forecast within 30 days. How many MW do you need, by when, and with what TOPCon/BC split? Without this figure, you can’t negotiate anything.
Lock in prices on volume orders now that the VAT rebate abolition has been reflected in price lists. The bulk of the Q1-Q2 adjustment has taken place, but polysilicon and EVA continue to drive prices up. Lock in orders for 6-9 month tranches.
Consider direct import for your next significant order. The gap between the factory price and the Italian distributor price widens precisely during BOM price increases, because local warehouses must revalue their stock.

In 2026, the smart buyer isn’t the one who finds the lowest offer. It’s the one who first understood where the real price is and positioned themselves right there.

Request a Factory Connect quote for your next module order

We’ll show you the actual factory price for your order volume, with an updated lead time for Q2 2026 and a breakdown of TOPCon/BC

Cost of the 2026 PV module BOM: 17% silver—what to do