Solar Panel Recycling Market Size, Share & Industry Analysis, By Type (Monocrystalline, Polycrystalline, and Thin Films), By Process (Thermal, Mechanical, Chemical, and Others), and Regional Forecast, 2024-2032

The global solar panel recycling market size was valued at USD 219.28 million in 2023. The market is projected to be worth USD 274.21 million in 2024 and reach USD 2,489.52 million by 2032, exhibiting a CAGR of 31.75% during the forecast period.

Solar panel recycling involves recovering valuable materials from decommissioned or defective solar panels for reuse in manufacturing new panels. In the solar energy industry, sustainability means fulfilling current energy needs while ensuring that future generations can also meet their energy demands. Comprehending the life cycle of a solar panel is crucial for evaluating its environmental impacts, as each stage, from production to disposal, can influence sustainability.

The combination of rising solar waste, sustainability initiatives, regulatory frameworks, economic incentives, and technological advancements is driving the growth of the solar panel recycling market. As the industry matures, effective recycling will play a crucial role in ensuring a sustainable future for solar energy production while mitigating environmental impacts.

Veolia is a key player in solar panel recycling due to its comprehensive approach, innovative technologies, and significant investments in recycling infrastructure. Veolia is at the forefront of developing advanced recycling technologies.

The global impact of the COVID-19 pandemic on the solar panel recycling market growth is moderate, as it hampered consumption and installation of solar panels in many end-users due to supply chain disruption of services and technology and hindrance in activities due to social distancing norms. Furthermore, China, the U.S., and India are among the significant countries processing and deploying solar recycling technology. These countries have experienced various regional and national level shutdowns of industrial operations to contain the spread of the virus, which led to a fall in demand for the PV recycling process.

Solar Panel Recycling Market Trends

Developing New Technologies for Solar Panel Recycling is Creating a Lucrative Opportunity

With the rise of renewable energy sources such as solar, hydro, and wind power, these technologies have become alternatives to traditional power and also drivers of innovation. Solar panel efficiency is measured by the percentage of sunlight a panel can convert into electricity, with the most efficient panels achieving up to 22% conversion. While growth in the solar panel recycling industry is still in its early stages compared to other recycling industries, efforts are being made to advance recycling technologies and infrastructure. These efforts aim to manage the growing volume of end-of-life solar panels, which have a typical lifespan of 25 to 30 years.

As the installation of solar panels increases, the need for recycling them at the end of their useful life will also grow. In 2024, Japan PV Recycling plans to introduce a groundbreaking recycling mandate for solar panels to address the expected surge in decommissioned panels around the mid-2030s. In March, Japanese companies AGC and Tokuyama were recognized for successfully experimenting with a new recycling method that demonstrated how reprocessed glass from recycled solar panels could be used to produce float glass.  This approach marks a significant step toward a more sustainable future, addressing one of the critical challenges in the expanding solar energy sector.

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Solar Panel Recycling Market Growth Factors

Rising Government Policies and Projects to Unlock New Potentials for the Industry

With the global shift toward renewable energy sources, the solar energy industry has experienced exceptional growth in recent years. As solar panels reach the end of their lifespan, proper disposal and recycling become crucial to minimizing environmental impact and maximizing resource efficiency. This remarkable expansion worldwide has been driven by supportive government policies and growing environmental awareness. Consequently, the installation of solar energy systems has surged, leading to a corresponding increase in the number of decommissioned solar panels that require proper disposal or recycling.

Government policies and projects are propelling the growth of the solar panel market. These initiatives help reduce the cost of solar energy, increase adoption, and drive technological advancements. Governments offer financial support to reduce the initial cost of solar panel installations for both residential and commercial users. Subsidies, tax breaks, and grants for recycling initiatives can help make the process more economically viable.

International Science and Technology Center (ISTC) has initiated efforts to prepare for an anticipated surge of end-of-life solar panels, ensuring their proper recycling, repurposing, or disposal. The organization is facilitating discussions and meetings involving various stakeholders, including state and federal entities interested in solar, such as the Illinois Solar Energy Association (ISEA), Solar Energy Industries Association (SEIA), and Illinois Environmental Protection Agency (IL EPA), along with installers, manufacturers, and national recyclers. Additionally, ISTC is collaborating on outreach initiatives aimed at raising awareness among homeowners and other end-users about key issues and available solutions.

Innovations in Recycling Methods to Boost Market Growth

The recycling industry for solar panels is still emerging, with researchers exploring ways to commercialize processes that economically recover most panel components. While these processes exist in the U.S., they have not yet reached large-scale adoption. Unlike other established sectors such as glass, metals, and electronics recycling, which can handle components of solar power systems, solar panel recycling involves methods such as crushing, shredding, and milling, often after removing the frame and junction box. These processes aim to recover materials such as glass, aluminum, and copper, while silicon solar cells may be incinerated. An alternative to landfill disposal is the reuse of panels, either directly or after refurbishment, allowing them to generate clean energy in new locations. Solar panels can find beneficial reuse in off-grid settings such as electric bike or vehicle charging stations and remote areas.

However, there are many useful ways PV panels are being reused in states where they aren't connected to the electrical grid, including electric vehicle charging stations or other remote sites. In 2024, We Recycle Solar has made significant strides at its Arizona facility, leading in processing end-of-life photovoltaic devices with the nation's highest capacity. Through its partnership with Renewables.org, the initiative addresses critical issues such as reducing the environmental impact of solar panel waste and meeting the demand for renewable energy in underserved regions, including parts of the U.S. This investment underscores a strong commitment to a cleaner and more sustainable energy future.

RESTRAINING FACTORS

Lack of Regulation Associated with Recycling and Fluctuating Costs Restricts Market Growth

As solar power generation technology becomes more widespread, the number of solar panels in use increases. However, the typical lifespan of a solar panel is around 20 years, after which proper disposal and recycling become critical. Currently, there are no federal regulations in the U.S. mandating Photovoltaic (P.V.) recycling. According to the U.S. National Renewable Energy Laboratory, less than 10% of decommissioned panels in the country are recycled.

In the European Union, where P.V. recycling is mandated by legislation, many recycling facilities focus on recovering valuable materials such as silicon silver and aluminum, which constitute over 80% of a silicon panel's weight.

According to the U.S. Department of Energy, recycling one solar panel costs USD 15 to USD 45 per solar panel, significantly more than the USD 1 to USD 5 per solar panel cost of sending it to a landfill. This economic challenge sometimes makes landfill disposal more attractive, discouraging the development and implementation of recycling programs. While the U.S. lacks federal laws mandating the recycling of solar panels, the government is taking initiatives and implementing laws related to environmental concerns. This lack of federal regulations makes it difficult to incentivize manufacturers and businesses to dispose of modules properly. Despite lacking federal intervention, some U.S. states have policies that classify panels as hazardous materials, ensuring specific components are disposed of with minimal environmental impact.

In the EU, strict renewable energy recycling laws are enforced. Additionally, the glass-crushing used in recycling produces harmful dust and noise pollution. Recycling costs are also higher due to the low volume of material available for recycling and the lack of dedicated collection and processing infrastructure.

Solar Panel Recycling Market Segmentation Analysis

By Type Analysis

Monocrystalline Segment is Dominating the Market Due to its High Efficiency

Based on type, the market is segmented into monocrystalline, polycrystalline, and thin films. The monocrystalline type segment is expected to experience the fastest growth and hold the majority market share than other types. Both monocrystalline and polycrystalline solar panels serve the same function in a solar P.V. system as they capture sunlight and convert it into electricity. The cells in both are made from silicon, which is the semiconducting material. The difference between the two technologies stems mainly from the production process of the silicon wafers. Usually, monocrystalline solar panels are considered under the premium category due to their high efficiency.

Thin film solar panels are frequently overlooked, especially when it comes to their crystalline counterparts. They tend to have a lower level of efficiency and take up more space, and present significant potential for future growth due to their affordability.

By Process Analysis

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Mechanical Process Holds Leading Position Due to its Physical Separation Efficiency 

Based on process, the market is fragmented into thermal, mechanical, chemical, and others.

The mechanical process is expected to boost the PV recycling market as it holds the majority of solar panel recycling market share. Mechanical recycling technology uses devices and principles to separate waste solar photovoltaic modules. The main role of this technology is to efficiently recycle the important components of solar cell modules, such as silicon wafers, metal electrodes, and glass substrates.

The thermal process holds the second highest market share as it provides effective recycling solutions by separating glass, metal, and silicon elements from the solar panels, thereby ensuring maximum resource recovery. Chemical recycling is a more complex process that includes using chemicals to separate altered elements in the solar panel. This method is particularly useful for extracting semiconductors and rare metals.

REGIONAL INSIGHTS

By geography, the market for solar panel recycling has been studied geographically across North America, Europe, Asia Pacific, and the rest of the world.

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Globally, Europe leads the market for solar energy due to its transition toward clean energy. Photovoltaic technology utilizes highly purified silicon to convert sunlight into electricity. A France startup, ROSI (Return of Silicon), has developed an innovative and economically viable process for recovering and reusing high-purity silicon, along with other valuable materials. This advancement underscores progress in sustainable practices within the solar industry, aiming to enhance resource efficiency and reduce environmental impact.

Under Germany's Renewable Energy Sources Act in 2023, the P.V. expansion targets were significantly increased to the cumulative installed capacity of 215 GWp by 2030 and 400 GWp by 2040. As a result, the first larger P.V. plants would reach the end of their life (EOL) and will need to be gradually replaced. Germany was the first to install large numbers of P.V. modules, it will be the first country that would handle large numbers of EOL modules.

In the solar panel recycling market, North America is anticipated to be the fastest growing region, with the U.S. and Canada increasing PV recycling projects. The government initiatives are more related to recycling projects as Canada's solar-power industry is developing a full lifecycle approach. This approach aims to eliminate the carbon emissions from fossil-fuel electricity generation and to minimize waste and maximize resources in solar panel manufacturing and their end-of-life processes.

KEY INDUSTRY PLAYERS

Constant Investment by Market Players in New Solar Technology Leads to Growth

The global solar panel recycling market is highly fragmented, with key players and several medium-scale regional players delivering a wide range of recycling processes at local and country levels across the value chain. Numerous companies are actively operating across different countries to cater to the specific needs of their customers.

Reiling GmbH & Co. KG has introduced a new PV recycling film that reflects recent innovations and significant progress in the field of PV recycling as an opportunity to update the existing film. This updated film allows customers to gain a detailed impression of the recycling solutions being tested for reuse and PV recycling at their specialized PV recycling site in Münster.

List of Top Solar Panel Recycling Companies:

• Veolia (France)


• First Solar Inc. (U.S.)


• Reiling GmbH & Co. KG (Germany)


• SILCONTEL LTD (Israel)


• HAMADA CO., LTD (Japan)


• Solarcycle, Inc (U.S.)


• Recycle Solar Technologies Limited (England)


• ROSI (France)


• The Retrofit Companies, Inc.s (Canada)


• Rinovasol (Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• 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. These advancements represent critical milestones in the processing of PV modules for advancing toward a closed recycling loop for solar panel materials.


• February 2024: Veolia announced plans to launch more than 40 solar projects on its selected non-hazardous restored landfills, aiming for a total installed capacity of 300 MW. These photovoltaic panels would cover approximately 400 hectares, generating enough electricity to power 130,000 households. The initial plants are scheduled to become operational by 2027. Veolia is also studying the feasibility of additional solar power plants on hazardous waste landfills and sites managed for industrial clients, resulting in over 400 MW of renewable energy installations across France.


• January 2024: First Solar inaugurated its fully vertically integrated solar manufacturing facility in Tamil Nadu, marking its sixth operational factory. This facility joins First Solar’s existing operational factories in the U.S., Malaysia, and Vietnam. The facility with an annual capacity of 3.3 GW would employ around 1,000 people directly. The project, which represents an investment of approximately USD 700 million, including USD 500 million in financing from the U.S. International Development Finance Corporation (DFC).


• June 2023: Reiling GmbH & Co. KG opened the first dedicated and highly specialized PV recycling site in Münster, featuring a specially developed treatment process for silicon-based PV modules. Additionally, after intensive research and development, the company optimized glass quality for high-quality melting applications and implemented silicon recovery on an industrial scale.


• May 2023: First Solar constructed a manufacturing unit in Sriperumbudur near Chennai and invested USD 684 million to produce 3.5 GW of thin film modules in India. With 70 percent of the investment already made, the plant is nearing production, and the first shipments occurred in October 2023.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product process, Porter’s five forces analysis, and leading recycling business. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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