- Silver Demand is Set to Increase
- The California Energy Commission Approved a New Solar Roof Law
- The Average Solar Paneled Roof uses Approximately 12-ounces of Silver
Silver demand will be getting a substantial boost in 2020, following a vote by the California Energy Commission (CEC) that will require nearly every home built in California to have a solar rooftop. As part of the State’s building standards, the nearly 15K homes build each year in California will have efficient clean energy which should save California approximately 1.7 billion dollar in energy costs over the next 30-years, according to the CEC study. One of the most important components in building solar tiles is photovoltaic conduction which is created using silver.
Last week the CEC voted on an update to Title 24 standards which are forecast to reduce home energy in California by 53% compared to the current standard used to build homes. The CEC is targeting a net zero energy standard for residential homes built starting in 2020, where a home produces more energy than it consumes. The CEC is also targeting net zero energy for commercial building by 2030. California residents are consistently facing electrical shortages mainly during the summer months, where parts of the state experience rolling blackouts from the grid to provide enough power across the state. Installing solar panels will reduce home owner’s reliance on the grid system and allow energy users to store power for when they need it the most.
The new law will go into effect on January 1, 2020 and will apply specifically to new residences and home renovations on buildings that are under 3-stories high. Homes that are unable to benefit from a solar rooftop panel structure will either have access to a solar community or be exempt from installing a solar rooftop. The savings that California will garner are based on historical new homes built in California as well as forecasted increases in the demand for solar efficiency which will climb from 15K homes per year to 100K homes per year according to the CEC study.
Most of the additional cost of solar panels will be embedded in the price of the new home. The CEC study says that the upfront costs will average approximately 15K per new home. They determined that the net costs will decline by $40 per month, as the $40 increase customers will pay up front will be offset by an $80 per month savings on energy bills including cooling, heating and lighting.
How Much Silver will be needed
You can approximate the demand for silver using a typical California home. Each solar panel that is created is approximately 17-square feet. Each solar panel uses approximately 66% of an ounce of silver. The average home would need approximately 18-solar panels to cover most of the south side of a home which is the preferred method of installation. This means that every home that is build will need an additional 12 ounces of silver. Since the CEC believes that nearly 100-thousand homes per year will now need solar panels, California is expected to increase the amount of silver demand by 1.2 million ounces per year.
The California Energy Commission has altered Title 24, which now requires that every residential home build that is under 3-stories will require solar panels. To produce solar panels approximately 66% of an ounce will be needed to generate 1-panel. This new law will drive silver demand higher, generating an additional 1.2 million ounces of silver demand per year according to CEC study information.
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Treasure Coast Bullion Group
Read more by Treasure Coast Bullion Group, Inc - Staff Writer