Harnessing Solar Waste: The Emerging Recycling Industry

Solar PV industry has made unprecedented growth through the last decade as the installed solar capacity worldwide reached over 1400 GW by 2023. While the solar industry is becoming the harbinger of a sustainable future, the sector is not devoid of challenges. The absence of safe and environmentally sustainable methods for recycling and recovering waste from solar panels and related components like batteries and inverters has become a growing concern for stakeholders.

Recycling is essential for maintaining a sustainable photovoltaic industry. With solar panels typically lasting 20 to 30 years, a significant rise in used modules from first-generation solar parks is imminent. As countries worldwide advance their solar energy deployment to meet ambitious 2030 targets, the volume of solar waste is projected to grow substantially over time.

According to Rystad Energy, annual solar PV waste could reach 27 million tonnes (27,000 kilotonnes) by 2040. This makes the case for the imminent need for the rise of the solar recycling sector.

While still in its infancy, the solar PV recycling industry has emerged worldwide with several countries now taking clear policy measures to tackle the problem of solar PV related waste. For example, India’s MNRE identified solar PV recycling as one of the priority thrust areas under the Renewable Energy Research and Technology Development (RE-RTD) Programme.

Solar Panel Recycling Industry

The global solar panel recycling market size was valued at USD 219.28 million in 2023. The market is projected to be worth about USD 274 million in 2024 and reach USD 2,490 million by 2032, exhibiting a CAGR of 31.75 percent during the forecast period, Fortune Business Insights reports. 

Europe leads the zero-waste solar panel recycling market, driven by strict environmental regulations and circular economy principles. Germany and France spearhead advancements in recycling technologies and infrastructure, supported by the European Union's waste management directives promoting sustainable disposal.

The Asia Pacific region is rapidly growing in this market due to the large-scale expansion of solar installations in China, Japan, and India, solidifying its pivotal role. North America is anticipated to be the fastest growing region, with the United States leading through its strong solar energy sector and advanced recycling facilities. Canada follows, focusing on reducing landfill waste and supporting renewable energy solutions. The government initiatives are more related to recycling projects as Canada's solar-power industry is developing a full lifecycle approach.

Global Growth Drivers

The solar panel recycling market is experiencing robust growth, driven by multiple factors. One significant driver is the increasing volume of solar panel waste, with a substantial rise in decommissioned panels anticipated in the latter half of this decade. This surge necessitates effective recycling solutions to manage the growing waste efficiently.

Recovery of Valuable Materials: As solar panels reach the end of their lifespan, recycling them facilitates the recovery of valuable materials such as silicon, silver, and lead. This process not only provides economic benefits but also helps prevent environmental harm by reducing toxic chemical leaching from improper disposal.

Expanding Solar Panel Installations: Emerging markets like Africa, Southeast Asia, and Latin America are rapidly adopting solar energy due to rising energy demands and the availability of low-cost panels. This expansion underscores the need for comprehensive recycling infrastructure to handle future waste effectively.

Investments in R&D Activities: Collaborative efforts between companies, governments, and recycling firms are advancing recycling technologies. For instance, in August 2024, renewable service provider RNWBL partnered with U.S.-based PV recycling firm Solarcycle to recycle over 200,000 solar panels, aiming for efficient end-to-end recycling solutions.

Supportive Regulatory Frameworks: Governments worldwide are enforcing stricter waste management regulations and setting ambitious sustainability targets. For example, the European Union’s Waste Electrical and Electronic Equipment (WEEE) Directive mandates the collection and recycling of e-waste, including solar panels, promoting sustainable practices globally.

Key Market Players

Key market players in the solar recycling industry include First Solar, we recycle solar, the Retrofit Companies, and Solarcycle from the United States. 

Europe hosts a number of firms in the business of solar waste recycling, including ReilingGmbh & Co.Kg based in Germany, Rinovasol (Netherlands) and ROSI SOLAR (France). In May 2024, less than a year after launching its first PV recycling facility in Germany, Reiling made two significant technological breakthroughs in recycling silicon-based PV modules. They substantially enhanced the quality of recovered PV glass and successfully implemented industrial-scale silicon recovery. Others, like Veolia, are also contributing in the sector.

SILCONTEL (Israel), Etavolt (Singapore), and PV Industries (Australia) are other major players in the market. 

Circular Economy

Discarded solar modules contain critical minerals essential for economic development, including silicon, copper, tellurium, and cadmium. Their retrieval could help ease the pressure on raw material availability for the new panels, or they can also be used in other industries. Rystad Energy reports that recovered materials from retired panels could make up 6 percent of solar PV investments by 2040, compared to only 0.08 percent today. 

The panel components with the highest value are aluminum, silver, copper and polysilicon. Silver accounts for about 0.05 percent of the total weight but makes up 14 percent of the material value. 

Polysilicon is obtained through an energy intensive process to achieve the concentration needed for solar panel efficiency, reflected in the relatively high resale price. The greatest volume of material is glass, which has a high recycling rate but relatively low resale value.

Landfills remain a cheap option as current resale prices for recycled solar PV materials fail to cover transportation and processing costs. However, recycling can alleviate material shortages as demand for minerals rises. 

By 2035, recycling panels installed in 2020 could supply 8 percent of polysilicon, 11 percent of aluminium, 2 percent of copper, and 21 percent of silver needed, reducing mining dependency and the carbon footprint of solar panels. Refining copper alone emits 4 tonnes of CO2 per tonne, making mining a major greenhouse gas contributor. Future carbon taxes could shift costs, boosting the recycling industry's value.

Solar Batteries Recycling

In addition to solar module recycling, solar battery recycling is a vital aspect of achieving a circular economy. It enables the recovery of valuable materials like lithium, cobalt, nickel, and lead, reducing reliance on mining and preserving natural resources. Recycling also mitigates environmental risks, such as soil and water contamination from toxic substances. With the solar battery recycling market projected to grow from USD 11.93 billion in 2024 to USD 28.0 billion by 2032, at an estimated compound annual growth rate (CAGR) of 11.25 percent between 2025 and 2032, the associated inverter recycling industry is also poised for significant expansion.

By reprocessing used batteries, the solar industry can significantly lower its carbon footprint and support sustainable energy systems. Furthermore, advancements in recycling technologies and government policies promoting extended producer responsibility (EPR) are driving the growth of the solar battery recycling sector, ensuring that waste management aligns with global sustainability goals.

Solar Recycling: the India Scene

In India, solar PV waste is projected to rise from 100 kilotonnes (kt) in FY23 to approximately 600 kt by 2030, as highlighted in a recent report by the Council on Energy, Environment and Water (CEEW) and the Ministry of New and Renewable Energy (MNRE). This calls for an arrangement of the recycling industry in India.

India’s E-Waste Management Rules 2022, which came into force in April 2023, require solar-panel manufacturers to oversee the return of their products’ waste by arranging collection, storage and dismantling, as well as the recycling facilities. They also need to store panel and cell waste up to 2035, according to CPCB guidelines.

Protocol dictates that solar waste from the plants must be transferred to e-waste contractors, authorised by the Central Pollution Control Board (CPCB), within a specified timeframe, typically 90 or 180 days.

Because authorised e-waste contractors are often unwilling to handle the waste in accordance with the CPCB protocol, a network of informal operators – who dismantle, aggregate, transport and recycle panels – have stepped in to fill the gap. But it is dubious if the waste is even being handled carefully as per the guidelines. 

Emerging Players in India

The solar recycling business is very new in India and E-Waste Management Rules put the onus on panel manufacturers to oversee the return of their products’ waste. New firms are sprouting up in the recycling business, not just for solar panels, but also for other relevant equipment like batteries, inverters, etc.

Dynamic Industry Corp plans to establish two recycling stations, one each in northern and southern India, and create a localized sales channel to distribute reclaimed metals and other materials derived from the recycling process. 

BatX Energies, an India-based sustainable lithium-ion battery recycling company, recently launched its critical minerals extraction project, HUB-1, in Sikandrabad, Uttar Pradesh. This facility features an advanced, in-house developed hydrometallurgical process capable of recycling all types of lithium-ion battery waste, including rejects from upcoming gigafactories. 

Similarly, Ace Green Recycling, a US-based battery recycling technology platform, announced its plan to establish 10,000 metric tons of lithium iron phosphate (LFP) battery recycling capacity per year in India by 2026. 

With the rapid growth of the country's solar PV industry, the solar recycling sector is poised for significant expansion, paving the way for the emergence of new startups. Additionally, this presents a valuable opportunity for global recyclers to enter the Indian market and tap into its vast potential.

Challenges to Solar Recycling Market

Recycling solar panels is challenging due to their complex composition, which includes glass, metals, and rare elements, requiring specialized equipment and skilled labour. The market value of recovered materials often fails to offset production costs, making recycling economically challenging for many firms. Furthermore, inconsistent global policies on solar panel disposal and the absence of a universal classification for panels as e-waste hinder the establishment of effective recycling practices.

Despite these hurdles, advancements in recycling technologies, supportive regulations, and increased investments are fostering growth in the sector. Countries like India are incorporating recycling into their policy frameworks, while global players are innovating to enhance efficiency and economic viability. By addressing these challenges, the solar recycling industry can play a pivotal role in achieving a circular economy, reducing reliance on mining, and mitigating environmental impacts, contributing to a sustainable future for solar energy.