Solar Energy Outshines The Competition, But Silver Might Spoil The Party - Invesco WilderHill Clean Energy ETF (ARCA:PBW), iShares Silver Trust (ARCA:SLV)

Core Insights - Solar power was the primary contributor to the growth in U.S. electricity demand in 2025, meeting 61% of the new demand [2][3] Group 1: Electricity Demand and Solar Growth - U.S. electricity demand increased by 135 terawatt-hours (TWh) in 2025, marking a 3.1% rise, the fourth-largest increase in the past decade [2] - Solar generation expanded by 83 TWh, a 27% increase from 2024, significantly contributing to the overall demand growth [2][3] Group 2: Regional Contributions - The U.S. South, particularly Texas, played a significant role in solar output growth, with Texas accounting for the largest absolute increase [4] - Solar met 81% of electricity demand growth in Texas and the Midwest, while covering about one-third of demand growth in the Mid-Atlantic region [4] Group 3: New Solar Projects - Several large solar facilities were commissioned, including the 153-megawatt Felina Project in Texas, the 150-MW Ratts 1 Solar Project in Indiana, and the 145-MW Axial Basin Solar Project in Colorado [5] Group 4: Timing and Storage - Solar generation effectively met the rise in electricity demand during daytime hours, with battery storage enabling coverage of some evening demand [6] Group 5: Future Projections - The U.S. Energy Information Administration projects continued growth in electricity generation, with solar expected to remain the fastest-growing source, potentially increasing from 290 billion kilowatt-hours in 2025 to 424 billion kilowatt-hours by 2027 [7] Group 6: Silver Price Impact - A surge in silver prices poses a potential risk to solar expansion, with spot prices reaching an all-time high of $99.36 [8] - The cost of silver in solar cells has increased to over 29% of a panel's total cost, up from 3.4% in 2023 and about 14% in 2025 [9] Group 7: Manufacturer Challenges - Manufacturers have reduced silver use in solar panels from around 11 milligrams per watt in 2024 to about 9 milligrams per watt in 2025, but this reduction carries technical and financial risks [10]