How the Solar Energy Sector is Increasing Circularity

In 2024, nearly 600 GW of solar capacity was installed, and the milestone of 2 TW was reached as reported by SolarPower Europe.

This rapid expansion underscores the importance of sustainable practices in the solar sector, especially since solar panels, with a lifespan of roughly 30 years, will require responsible end-of-life management by 2050.

The global recycling rate for photovoltaic (PV) panels stood at about 14% in 2021, according to the IEA.

The failure to scale up solar PV disposal solutions could lead to substantial waste, intensifying environmental concerns.

As Sonia Dunlop, CEO at the Global Solar Council, says: “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.”

Why solar panels become waste

Solar panels degrade over time due to exposure to sunlight, weather, and temperature changes.

The US National Renewable Energy Laboratory highlights that panels lose up to 0.8% efficiency annually.

This degradation justifies replacing panels after about 30 years, especially with ongoing improvements in efficiency and footprint.

Back in 2000, panels had an average conversion efficiency of just over 11%, which has increased to approximately 20% by 2025.

This highlights the technological progress driving the need for efficient recycling methods.

The challenges of solar PV disposal

The IEA and IRENA predict solar PV waste could amount to 78 million tonnes by 2050.

Disposing of solar panels in landfills results in losing valuable materials such as silicon, silver, aluminium, copper and cadmium, which are potentially harmful.

While materials like glass and aluminium are commonly recycled, but recycling of solar panels is limited by economic barriers, lack of infrastructure and weak policy enforcement in some regions according to the IEA. 

By 2030 the IEA and IRENA estimate that only 22-49% of panels might be recycled globally, depending on future policies.

The potential value of recovering materials from end-of-life PV panels could exceed US$15bn.

First Solar's PV recycling efforts

First Solar, a significant player in the solar industry, claims to be the only manufacturer with global in-house PV recycling facilities, backed by more than 15 years of industrial-scale experience.

In 2005, it pioneered the global solar panel recycling program and continues to enhance it.

First Solar’s 2024 Sustainability Report states a 2023 annual recycling capacity of 88,000 tonnes.

Pat Buehler, Chief Product Officer at First Solar, said: “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 aluminum 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.”

How SOLARCYCLE recycles panels

California-based startup SOLARCYCLE focuses on advanced solar recycling, collaborating with various businesses like ENGIE, CanadianSolar, AES, EDP Renewables and Ørsted.

The company strives to recover crucial materials like silicon, copper, silver, aluminium and glass from end-of-life panels, facilitating their return to the solar supply chain.

SOLARCYCLE employs proprietary technology to extract over 95% of valuable materials.

In partnership with ENGIE North America, SOLARCYCLE is piloting a “precycling” programme designed to divert an estimated 48 million pounds of material from landfills.

Jesse Simons, Co-Founder and Chief Commercial Officer at SOLARCYCLE, states: “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.”