A Development That Could Support Long-Term Demand
U.S. solar developers are rushing to qualify projects for federal clean-energy tax credits before the July 4 deadline. According to Reuters, this wave of âsafe harborâ activity could lock in enough projects to support solar installations well into the 2030s.
Why does this matter for silver?
Solar is one of silverâs largest industrial demand sectors. Every new solar installation requires silver for its high electrical conductivity.
This doesnât mean silver prices suddenly spike next week.
However, if developers successfully preserve tax credit eligibility before the deadline, many of those projects have up to four years to be completed. That helps maintain a pipeline of future solar installations, and therefore future silver demand, even as subsidies become harder to obtain afterward.
The other side of the story is worth noting too:
⢠Future solar projects may become more expensive without the same incentives.
⢠That could slow the pace of new development later in the decade.
⢠But the current rush appears large enough that analysts expect it to support installations for several years.
