Solar Panel Recycling Market - Forecasts from 2024 to 2029

Solar Panel Recycling Market - Forecasts from 2024 to 2029

The solar panel recycling market is evaluated at US$180.277 billion for the year 2022 and is projected to grow at a CAGR of 27.86% to reach a market size of US$1,077.356 billion by the year 2029.

Solar panel recycling is the methodical collection and repurposing of elements from solar photovoltaic (PV) panels that have been retired. It is essential for sustainability in the renewable energy sector. To avoid resource depletion and environmental damage, it is critical to manage the disposal of end-of-life solar panels as these installations spread around the world. Recycling usually entails gathering, classifying, disassembling, processing, and refining materials to extract valuable components for reuse in new goods, such as silicon, aluminum, and glass.

Solar panel recycling has several advantages, including reduced waste, energy savings, resource conservation, and economic prospects. Stakeholders can guarantee the long-term viability of the solar energy sector while reducing its environmental impact by putting in place effective recycling infrastructure and encouraging ethical end-of-life management practices.

MARKET TRENDS:

Rising customer awareness of the increased benefits of sustainable energy sources, as well as subsidies provided by provincial governments, is a critical factor driving market growth, as is an increase in the number of installations of solar photovoltaic modules. Rising adoption of solar panels, rising government regulations, increasing effective disposal of solar panels, and an increase in the number of solar panel installations as an alternative to other non-eco-friendly sources are the key drivers driving the solar panel recycling industry, among others.

Furthermore, rising technological advancement and modernization in manufacturing processes, as well as rising research and development activities in the industry, are predicted to provide new opportunities for the solar panel recycling market throughout the projected period. However, a lack of awareness regarding solar panel recycling is a key restriction that would further challenge the solar panel recycling market growth.

MARKET DRIVERS:

The rise in solar energy waste is anticipated to drive the market growth.

Solar panels have a functional life of 20 to 25 years and must be changed after that. These solar panels have photovoltaic modules which contain heavy metals and so cannot be disposed of in landfills. As a result, the solar panel recycling business has enormous potential. The solar panel can be dismantled into multiple parts and recycled using a variety of methods, including mechanical, thermal, chemical, laser, and combinations thereof.

Furthermore, the total volume of accumulated global solar panel waste is expected to reach 60 to 78 million tonnes by 2050, according to the International Renewable Energy Agency (IRENA). As a result, the rise in solar waste is projected to fuel the worldwide solar panel recycling industry. Additionally, solar energy is both affordable and ecologically beneficial. According to the International Energy Agency, solar PV is the new leader in power supply and is set for rapid growth. Hence, the global demand for solar panel recycling is growing globally.
Increased solar installations are expected to upsurge the market expansion.

The solar panels recycling market is strongly impacted by the growing installation of solar panels in several noteworthy ways. As more solar systems are installed, there is a corresponding rise in the quantity of end-of-life photovoltaic (PV) panels that are nearing the end of their use. As more panels become retired, there is an increasing need for effective and environmentally friendly recycling methods to handle their disposal and recover valuable materials.

Additionally, the growing solar industry encourages infrastructure development and innovation in solar panel recycling technology. To efficiently and effectively manage higher numbers of panels, recycling facilities and procedures have been established.
A rise in regulatory mandates is anticipated to drive the market.

Regulations that set standards and guidance for the proper end-of-life management of photovoltaic (PV) panels have a substantial influence on the market for solar panel recycling. Extended producer responsibility (EPR) regulations, which force producers to arrange and fund product collection and recycling, are frequently a part of these mandates.

To satisfy recycling targets, which also aim to keep a specific proportion of end-of-life PV panels out of landfills, investments in recycling infrastructure and procedures are encouraged. Grants, tax credits, and other forms of financial assistance may be offered as incentives to promote recycling initiatives and ease compliance. Regulations may also set criteria and certification requirements for recycling procedures, guaranteeing the sustainability of recycled materials in the environment and their quality.

MARKET RESTRAINTS:

Lack of awareness and general interest hinders the market.

Recycling is expensive, and the lack of awareness and general interest in developing countries in the Asia Pacific region is predicted to hamper market expansion. Recycling is more expensive than landfilling, and the value of recovered scraps is less than the original. Thereby, there is minimal interest in recycling. Solar panel recycling is still very expensive. Nevertheless, researchers are exploring novel recycling technologies to curb this issue. The waste contains silicon, calcium, lead, and other toxic compounds (including carcinogens) that cannot be removed without breaking the panel further restraining the market.

Asia Pacific is predicted to account for a significant share of the solar panel recycling market.

The solar panel recycling market is expected to expand at a rapid rate in the Asia-Pacific region. With growing environmental concerns and industrialization, particularly in Asia-Pacific, the region’s solar power-producing capacity has acquired significant traction.

Countries such as China and India are prominent solar power generating countries in the region, with a high percentage of solar panel installations. China manufactures around 71% of global solar panels capacity. Furthermore, due to the existing and aging infrastructure, the solar panel recycling market is anticipated to gain popularity during the forecast period.

Market Developments:

In July 2023, Rexia Corporation, a new business formed by Marubeni Corporation and HAMADA Co., Ltd., began offering recycling and reuse-related services for the sale, acquisition, and disposal of used solar panels.
In April 2023, through its Energy Research Institute @ NTU (ERI@N), Maxeon Solar Technologies, Ltd., a leader in solar innovation and channels worldwide, partnered with Nanyang Technological University, Singapore (NTU Singapore), to research ways to enhance solar recycling on Earth Day 2023.
In March 2023, the tech-driven recycling firm SOLARCYCLE, which aims to produce sustainable materials at scale for the solar sector, revealed that it has secured $30 million in Series A investment, increasing the total amount of funding raised by the company since its founding in 2022 to $37 million.

Segmentation:

By Panel Type
Silicon-based
Thin film-based
By Material
Glass
Metal
Others
By Geography
Americas
Europe Middle East and Africa
Asia Pacific