Future of solar energy hinges on recycling

Solar energy is an extremely useful and abundant source of clean, renewable energy. In 2023, global solar capacity reached over 1,200GW, contributing significantly to the reduction of carbon emissions, with estimates showing that solar energy helped avoid around 1.7 gigatonnes of CO2 annually.

This makes solar power a key player in the global transition to greener energy, with the added advantage of being scalable and relatively low in operational costs.

However, while we focus on its benefits, discussions about the life cycle of solar panels, particularly their waste, are often overlooked. As solar installations age, the issue of managing solar panel waste becomes critical.

With panels having a lifespan of 25-30 years, the International Renewable Energy Agency estimates that solar panel waste could reach 78 million tonnes by 2050, raising concerns about their environmental impact beyond their useful life. Furthermore, a recent study found that even these numbers are very optimistic.

The numbers can be 50 times higher than the estimates by IRENA, primarily due to early replacements driven by economic incentives rather than the natural end-of-life of the panels.

Recycling technologies for solar panels remain underdeveloped, with current processes costing between $20-30 per panel, compared to just $1-2 for landfill disposal. This high cost is driven by the complexity of materials such as Ethylene Vinyl Acetate (EVA), glass, silicon, and metals, which are difficult to separate and process.

Technologies like thermal, mechanical, and chemical recycling methods are still in their infancy, and while some panels can be recycled up to 95%, scaling these methods requires significant investment. Without adequate recycling infrastructure, most end-of-life panels risk ending up in landfills or being incinerated, exacerbating environmental issues.

US recycling laws

While there is dearth of regulations around this globally, the European Union has introduced some regulations. The EU’s Waste Electrical and Electronic Equipment (WEEE) Directive mandates stringent recycling targets, requiring that by 2019, 85% of photovoltaic (waste be recovered and 80% be prepared for reuse and recycling). This has made the EU a global leader in tackling electronic waste, including PV panels.

Despite these ambitious targets, implementation across the EU varies, with several member states struggling to meet the requirements due to a lack of infrastructure and differing interpretations of “producers” responsible for compliance.

In comparison, countries outside the EU, such as the United States and China, are also ramping up their electronic waste management efforts, but are yet to match the EU’s rigour. For instance, China has introduced its own set of regulations, but enforcement and infrastructure gaps persist. Similarly, the US has recycling laws in place but lacks a nationwide framework akin to the WEEE Directive.

If the issue of solar panel waste is not addressed, it could lead to severe environmental and economic consequences. Toxic materials like lead, cadmium, and antimony found in panels could leach into soil and water if disposed of improperly, causing long-term pollution.

Moreover, valuable materials like silver, which could be recycled, will be lost, placing further strain on natural resources. The majority of discarded panels may end up in landfills, increasing waste management costs for governments and missing out on the estimated $15 billion in recoverable materials by 2050.

While developed nations, particularly those in the EU, are starting to establish recycling frameworks, developing countries, which have not yet experienced large-scale disposal, are sitting on a ticking time bomb. As these nations’ solar installations reach the end of their 20-25 year life cycles, they may face an overwhelming influx of panel waste without the infrastructure to manage it sustainably.

"Orphan waste"

The solar industry needs a well-established recycling infrastructure and comprehensive legislation, especially to manage end-of-life solar panels. As solar adoption accelerates, more panels will require recycling or disposal, increasing the waste burden. The issue is compounded by “orphan waste,” where panels from defunct companies leave current producers responsible for disposal costs.

If current manufacturers must bear the cost of recycling both their products and orphan waste, it will significantly raise their operational expenses. This, coupled with inadequate infrastructure, could undermine the financial viability of solar energy. Companies with thin margins may struggle to compete, particularly as the levelized cost of energy (LCOE) rises due to added recycling costs, making solar less competitive.

Governments must implement robust Extended Producer Responsibility (EPR) legislation to address the solar panel waste challenge, mandating that manufacturers take financial responsibility for the end-of-life management of their products. This should include an upfront recycling fee at the point of sale to create a fund for future dismantling, transport, and recycling costs.

Additionally, a market-share-based cost allocation system, modelled on the WEEE Directive, could be introduced to handle orphan waste from defunct manufacturers, ensuring that current producers are not disproportionately burdened. Standardised disposal protocols for hazardous materials, licensing and certification for dismantlers, and localised recycling facilities are also essential.

Governments should promote public-private partnerships to establish recycling plants, offer innovation grants to improve recycling technologies, and incentivise modular panel designs that facilitate easier disassembly and material recovery.

In parallel, governments should develop comprehensive monitoring systems for tracking the life cycle of solar panels, mandating digital waste tracking from installation to disposal. Annual reporting requirements on waste volumes and recycling rates should be imposed on manufacturers, while public education campaigns could raise consumer awareness about proper disposal.

Circular economy initiatives must also be encouraged, with financial incentives for companies refurbishing panels for secondary markets and consumer rebates for proper recycling. These actions will ensure the solar sector maintains its competitiveness by mitigating waste management costs and aligning with sustainable energy goals.

Aditya Sinha (X:@adityasinha004) is OSD, Research, Economic Advisory Council to the Prime Minister. Views Personal.