Why Solar Manufacturers Must Adopt Circular Methods
Nearly 600 GW of solar capacity was installed in 2024, according to SolarPower Europe, and the milestone of 2 TW installed was reached late in the year.
Solar panels typically last around 30 years, so by 2050, a large portion of solar photovoltaic (PV) capacity installed by 2025 will need replacement.
The International Energy Agency (IEA) estimates the global recycling rate for PV panels was approximately 14% in 2021.
When these panels end up in landfills, they carry valuable minerals and metals with them. Further, if the disposal process is not properly managed and scaled, it can lead to enormous quantities of waste.
According to Sonia Dunlop, CEO at the Global Solar Council: “Achieving the global target of tripling renewable energy capacity by the end of the decade is possible with solar. We need 1 TW of solar every year through 2030 and solar progress in more and more countries.
"That means action now to prepare for the future: smarter grids, faster permitting, bigger investments in emerging markets and serious workforce planning.”
Challenges in managing solar panel waste
Solar panels degrade over time due to exposure to sunlight, weather and temperature changes, all of which impact their efficiency.
The US National Renewable Energy Laboratory reports panels losing up to 0.8% efficiency annually on average.
After approximately 30 years, replacing solar panels becomes cost-effective due to reduced energy output, compounded by advancements in efficiency.
In 2000, the conversion efficiency of panels was around 11%, and by 2025, it's expected to reach about 20%.
Handling solar PV disposal
The IEA and the International Renewable Energy Agency (IRENA) project solar PV waste to potentially reach 78 million tonnes by 2050, which is comparable to the weight of the Great Pyramid of Giza multiplied thirteen times.
Disposal in landfills results in the loss of valuable and sometimes hazardous materials like silicon, silver, aluminium, copper and cadmium.
Many of these materials, such as glass and aluminium, are generally recycled, but recycling solar panels faces economic, infrastructural and regulatory challenges.
The IEA and IRENA estimate that by 2030, global recycling of solar panels could increase to 22-49%, depending on changes in policy and economic conditions.
The value of materials recoverable from decommissioned PV panels is projected to exceed US$15bn.
The IEA suggests that recycling could fulfil a significant portion of the demand for materials like silver, silicon, copper and glass between 2040 and 2050, offering a substantial business and resource opportunity.
First solar’s role in PV recycling
First Solar, a major American solar panel manufacturer, claims to have the only in-house global PV recycling capabilities, with over 15 years of industrial-scale operations.
Since initiating the first global solar panel recycling programme in 2005, the company has continually invested in innovation.
By the end of 2023, First Solar's annual recycling capacity was reported at 88,000 tonnes.
Pat Buehler, Chief Product Officer at First Solar, says: “As the Clean Energy Buyers Institute warned, if the solar manufacturing industry continues its business-as-usual approach by relying on cheap, subsidised coal electricity to produce polysilicon, it runs the risk of overtaking aluminium production in carbon intensity.
"We must act now to change course by actively reducing the carbon footprint of solar technologies while also investing in high-value recycling that addresses the end-of-life management of decommissioned solar panels in a sustainable manner. Our industry must embody sustainability, not simply pay lip service to it.”
Innovative solutions from SOLARCYCLE
SOLARCYCLE, a California-based startup, specialises in advanced solar recycling and collaborates with several companies like ENGIE, CanadianSolar and Ørsted.
It focuses on recovering valuable materials from decommissioned solar panels, such as silicon, copper, silver, aluminium and glass, and reintegrating them into the solar supply chain.
With proprietary technology that can reclaim over 95% of valuable materials from solar panels, SOLARCYCLE is piloting a 'precycling' initiative with ENGIE North America, aiming to divert around 48 million pounds of material from landfills.
Jesse Simons, Co-Founder and Chief Commercial Officer at SOLARCYCLE, says: “ENGIE’s precycling provision sets a new precedent for the utility-scale solar industry by proving that circular economy principles can be achieved without complex regulatory intervention and in a way that doesn’t require an up-front payment. We’re happy to work creatively with leaders like ENGIE to support their commitment to circularity, domestic energy, and sustainability.”
