Transforming the Solar Panel Lifecycle: Reuse and Recycling Strategies for a Sustainable Future

As solar energy adoption surges, a new challenge emerges: managing the end-of-life stage of solar panels. With over 200 GW of solar capacity installed in the U.S. and more than 5 million solar systems deployed across residential, commercial, and utility sectors, the question of what to do with aging or obsolete panels is more pressing than ever. At the 2024 Fall Conference in Arizona, industry experts Garrett Powell from Solar Panel Recycling (SPR) and Darcy Otis from Energy Solutions and Supplies shed light on innovative strategies for investment recovery (IR) professionals to address this growing issue.

Key Questions for Investment Recovery Professionals

The conference highlighted several critical questions for IR professionals to consider:

• What are the current trends impacting solar equipment recovery and reuse?

• What is the outlook for the solar panel secondary market in 2025 and beyond?

• Are there hidden costs associated with recycling or reusing panels?

• How should one select a reliable solar panel recycler?

The Growth of Solar Energy and Its Challenges

Solar energy has seen exponential growth over the past two decades, driven by falling costs, policy support, and increasing demand for renewable energy. However, this rapid expansion comes with challenges. Solar panels typically have a lifespan of 25–30 years, but many are being replaced earlier—within 15–20 years—due to technological advancements or efficiency upgrades. This trend is creating an urgent need to develop robust reuse and recycling markets to handle the incoming wave of decommissioned panels.

Reuse: A Priority for Sustainability

Before diving into recycling, reusability should be prioritized. Panels in good working condition with adequate wattage output (typically 300W or higher) can find value in secondary markets. Factors influencing reuse include:

• Brand reputation: Panels from reputable manufacturers often have higher resale value.

• Market demand: Overseas markets in Africa, South America, and the Caribbean are expanding.

• Utility refresh projects: Older installations undergoing upgrades present opportunities for reclaiming usable panels.

One case study shared at the conference illustrated how SPR helped a utility company reclaim 90% reusable materials from 60,000 stored panels, avoiding significant costs associated with new replacements.

Recycling: Breaking Down Solar Panels

When reuse isn’t an option, recycling becomes essential. Solar panels consist of various recyclable materials:

• Glass (76%): Easily recyclable but low in value.

• Aluminum frames: High-value material that’s 100% recyclable.

• Copper wiring: Recyclable and reusable.

• Silicon (5%): Recoverable through chemical processes.

• Silver and internal copper: Valuable but present in small quantities.

Despite these opportunities, solar panel recycling faces economic challenges. The low intrinsic value of glass—the primary component—and high logistics costs make recycling less profitable. However, advancements in clean separation technologies are promising. For example, SPR’s R&D efforts have resulted in efficient processes for separating materials on a large scale.

Selecting a Solar Panel Recycler

Choosing the right recycler is crucial for both environmental responsibility and cost-effectiveness. Key criteria include:

• Compliance with EPA regulations and certifications like R2 or ISO 14001.

• High material recovery rates (e.g., silicon, aluminum).

• Transparent processes for handling hazardous materials.

• Minimizing landfill waste by maximizing reuse opportunities.

• Experience with solar panels specifically.

• Offering pickup services or drop-off locations to reduce logistics costs.

Looking Ahead: The Future of Solar Panel Lifecycle Management

As the first generation of solar panels reaches end-of-life, IR professionals must navigate complex decisions around reuse and recycling. Collaboration with vendors will be critical to identifying salvage value early on while minimizing environmental impact and compliance risks.

The solar industry’s rapid growth presents both opportunities and challenges. By embracing innovative strategies for reuse and recycling, we can ensure that solar energy remains a sustainable solution for decades to come.