Australia, Renewables, Solar

The future of recycling solar panels

AEMO

Year after year Australia has been taking the top spot in most rooftop solar installed per capita of any country in the world.

We are a world leader, yet we do not have an answer to the impending deluge of solar PV panels reaching the end-of-life stage, and are not hitting the mark when it comes to creating a circular economy.

It is estimated that more than 3.7 million rooftop solar power systеms have been installed across Australia since 2001. At present, the estimated operational lifespan of solar panels can be up to 30-35 years; with reputable manufacturers offering production warranties up to 25 years. However, many manufacturers offer significantly shorter warranties, and some consumers are upgrading and replacing their systеms much sooner.

In some cases, solar panels are being taken off roofs after as little as five years of use.

The industry is making such great progress in increasing the efficiency and capacity of solar modules that households and businesses are upgrading their systеms to attain the energy benefit of a more efficient systеm while discarding the older panels. This may be due to a range of reasons, including that there may not be sufficient space on roofs to add more panels, so owners are replacing entire systеms; or, given the ever-changing technical standards, the original systеm is no longer compatible with new systеms or Australian standards.

Solar PV systеms taken off roofs prematurely are entering the waste stream much earlier than they need to, and are being treated as though they have reached their end-of-life.

There is currently no scheme in place regulating the resale and re-installation of second-hand solar panels, meaning solar installers or homeowners find themselves in possession of perfectly good solar panels which are only able to be sold through unregulated platforms such as Facebook Marketplace for off-grid installs. There are many challenges to overcome to facilitate a market for used solar panels – in particular, ensuring adequate consumer protections and panel sufficiency tests are in place.

And there is another challenge. As we get further down the product lifecycle, how do we manage the solar panels which no longer have the capacity to be reused?

In March 2024, a report published by the University of New South Wales, in collaboration with Neoen and the Australian Centre for Advanced Photovoltaics, forecast that by 2035, the cumulative amount of waste from retired solar panels in Australia is expected to reach 1 million tonnes. 1

This represents both a challenge and an opportunity. A challenge not only because of the significant amount of waste coming our way, but because that waste is difficult to recycle. And an opportunity because of the growing value of the materials contained in solar panels and the growing need for a circular economy.

The increasing waste stream in Australia of clean energy systеms poses a major risk to the cornerstone objectives of clean energy, namely that it is clean. If not managed correctly, the deluge of waste will detract from the great benefits renewable energy will bring.

Many states have taken steps to manage this new stream of waste by implementing landfill bans on solar panels, however questions remain as to where this waste should be diverted to, as there are currently no recyclers of solar panels working at commercial scale in Australia. Many businesses are actively collecting and stockpiling solar panels while awaiting a solution.

The solar industry and waste management stakeholders recognise the increasingly concerning problem but are currently unable to progress recycling infrastructure and facilities due to lack of resources and governmental support. 

Solar recycling involves highly complex processes and remains an emerging sector, with numerous financial and regulatory challenges to overcome. One of the main challenges is the feasibility of recycling solar panels. Currently, there is a very small return in recovering materials from solar panels in comparison to the upfront costs and lack of revenue in running a recycling facility for solar panels. This creates a relatively low incentive for recycling solar panels.

While it is promising to see that work is being done by the Federal Government to create a product stewardship scheme which, according to the Government, would help cover the issue of negative profit margins recyclers currently face. Despite these promising signs of government interest, there remain many unanswered questions and concerns surrounding it, including who will perform the material extraction, what exactly will be recycled, and where this will take place.

Government funding and support is needed to progress technology, infrastructure and facilities to allow for the nascent solar recycling industry to take off. With proper circular economies in place, we can ensure the transition to renewables is efficient and managed with minimal waste and environmental impact.

This article featured in the August edition of ecogeneration. 

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