Recycling Solar Panels: The Billion-Dollar Industry No One’s Talking About
A deep dive into the hidden treasure in solar panels
There is hidden treasure within solar panels — according to research by the International Renewable Energy Agency (IRENA), the global value of recoverable materials from end-of-life solar panels could exceed $15 billion by 2050.
But as of now, with over 90% of photovoltaic (PV) panels in the U.S. ending up in landfills, these resources are completely wasted.
Solar panels are not just a clean energy solution; they are a repository of valuable materials like silicon, silver, copper, and aluminum. As IRENA explains, these critical materials are the resources needed to produce numerous key technologies for the clean energy transition. A study by the National Renewable Energy Lab (NREL) found that by 2035, recycled materials from retired panels could provide over 50% of the silver we need for new PV, as well as over 30% of the aluminum, silicon and glass.
Properly recycling these panels is a source of untapped wealth that could unlock a multi-billion dollar industry.
As the industry expands, it will not only recover valuable materials, but also foster job growth in the entire recycling sector. Renewable jobs nearly doubled in the last decade (13.7 million in 2022) and solar PV is still the fastest-growing sector, representing more than a third of the total workforce in the renewable energy sector (IRENA research).
Recycling efforts involve specialized roles in material recovery, logistics, the development of new technologies to improve recycling processes, and much more — including the incentivization of domestic manufacturing in the U.S. Companies like WeRecycleSolar, SolarCycle, METech, and Ontility are already demonstrating the potential for economic growth through their recycling initiatives.
With an unprecedented momentum for these renewable energy advancements, the economic opportunities presented by solar recycling are vast.
But remember: over 90% of decommissioned PV panels in the U.S. currently end up in the landfills. Why is this? And beyond the economic growth potential, why is solar panel recycling so necessary anyway?
The Growing Need for Solar Panel Recycling
To understand why a proper system for recycling PV panels is crucial, we must grasp the remarkable scale of the industry’s growth.
No other energy technology in our history has grown as fast as solar. In both 2022 and 2023, the world built more new solar capacity than every other power source combined.
As an article from the World Economic Forum in 2022 explained, “If the sector continues growing at an average of 20% a year, we’ll hit 6 terawatts around 2031. In capacity terms, that would be larger than the combined total of coal, gas, nuclear and hydro.” To help put this in another perspective, the terawatt hours added only in 2022 (270 TWh) are enough to power a midsize state like North Carolina or Michigan, or a small country like Denmark or Ireland.
Then in 2023, global solar installations increased not by 20%, but by 87%, with the U.S. leading the rest of the world except China — the world’s total capacity now reaching 1.6TW.
There are several significant factors explaining the explosion in solar capacity. As the International Energy Forum (IEF) explains, “efficiency of PV panels has increased from just 6% in the mid 1950s to 24.5% last year. Another significant factor is the falling cost of solar: MIT reported in 2018 that PV module costs had dropped by 99% over the previous four decades. Even though more recent estimates have slightly adjusted this figure, solar remains the single cheapest source of energy in the world, according to the International Energy Agency (IEA).”
What does this mean environmentally and economically? A report from the Lawrence Berkeley National Laboratory (LBNL) in the U.S. has found that, “between 2019 and 2022, the addition of solar and wind generation capacity in the U.S. cut carbon dioxide emissions by around 900 million metric tons, driving economic benefits worth US$249 billion.”
However, the rapid increase in solar capacity has also led to a corresponding rise in the number of end-of-life PV panels expected to flood the market — and given their estimated lifespan of 20-30 years, it’s beginning for the first time now.
According to projections from the International Renewable Energy Agency (IRENA), solar panel waste could reach 78 million tonnes by 2050 globally — about 10 million (12.78%) of that alone in the U.S.
Implementing solar panel reuse strategies is absolutely essential for minimizing waste and maximizing the economic benefits of the solar industry. The U.S. Environmental Protection Agency (EPA) explains, though, that the solar recycling industry is in its infancy — it’s still figuring out how to make money from recovering and then selling panel components. “NREL’s Taylor Curtis, a legal and regulatory analyst, acknowledges part of the problem is a sheer lack of data. Elements of this recycling process can be found in the United States, but it is not yet happening on a large scale,“ the EPA said in an overview of the industry.
It’s true that there are significant challenges here. After meeting with many different sectors of the solar industry as a whole (manufacturers, installers, collectors, reuse projects, and more), we’ve discovered one of the biggest missing pieces is the management of logistics.
This is exactly where Electra comes in: by managing the tracking and collection of PV panels via an easy-to-use standardized Solar Panel Registry and Product Stewardship Organization, not only can we help people and companies move toward a genuinely circular economy in the solar industry — but we’ll be able to help them capitalize on huge economic opportunities.
The Valuable Materials Behind Solar Panels and Their Economic Potential
Solar photovoltaic panels are built from materials that drive renewable energy generation and hold significant economic value.
So, what resources do we need in the first place to build a PV panel?
By weight, the typical crystalline silicon solar panel is made of about 76% glass, 10% plastic polymer, 8% aluminum, 5% silicon, 1% copper, and less than 0.1% silver and other metals, according to the Institute for Sustainable Futures. For a closer look into these rare earth elements, check out the article “The Minerals in Solar Panels and Solar Batteries” by Cory O’Brien at Palmetto.ght at only 20 grams, it makes up about 10% of the cost. However, as one of most conductive elements in the world, its job of intercepting electrons in the silicon wafers and turning them into current is an important one. Copper metal conductors and wiring connect the solar cells together, moving the current through the panel.
An article by Charlie Hoffs in the Union of Concerned Scientists explains, “Ten percent of the world’s silver (data from US Dept. of Energy) is used for solar panels today, and that brings its own share of problems to the supply chain. By 2050, in a 100% renewable energy scenario that assumes current solar technology and current recycling rates, solar power’s demand for silver could be more than 50% of world reserves.” A report by the International Energy Agency (IEA) further details the role of critical minerals in the clean energy transition, concluding that “today’s mineral supply falls short of what is needed to transform the energy sector.” For example, electricity networks need a huge amount of copper and aluminum, and they project the demand of copper for solar projects nearly tripling if a 100% renewable energy by 2050 scenario is reached.
But… manufacturing for this huge increase in solar panel production would require a surge in the mining of these raw materials, and there are many associated challenges with this, including community displacement, heavy metal contamination, ethical supply chains, and more. It’s absolutely imperative to ensure sustainable sourcing of these materials — so how do we help that happen?
Resource Recovery from Recycled Solar Panels and Its Economic Impact
The two big challenges just described above — the mounting volume of solar panel waste, and raw material sourcing issues as the clean energy transition continues — can help solve one another! There is a great ‘silver’ lining here in the lifecycle of a solar panel: as more solar panels are retired, there will be more recyclable materials available. There are many opportunities here for new initiatives to make a huge impact.
Before even getting into the benefits of resource recovery, what does it actually cost compared to raw mining? Research in the Journal of Cleaner Production explains: “The private and external cost of virgin materials sourced from the earth's crust is estimated to be around USD $90.00/m2. The recycling cost, encompassing all expenses, is approximately $12.43/m2, without factoring in the benefits of recovered materials. When considering the benefits of recovered materials, the total cost of recycling PV panels is estimated to be around $1.19/m2.” In other words, it only takes 1.3% of the original cost of $90.00/m2 to mine and source brand new materials.
Indeed, researchers have developed diverse physical, thermal, and chemical methods to recycle silicon-based PV panels, aiming to repurpose damaged panels and prioritize economic and environmental sustainability. Here is a comprehensive review that dives into the various specific techniques for recovering silicon and valuable metals such as silver, copper, aluminum, and lead. As the need to develop efficient recycling methods to handle end-of-life solar panels is so urgent, there is ample ongoing research to uncover more viable approaches for sustainable management: here’s yet another new method uncovered just a few months ago that involves a salt-etching approach published in Nature.
And what do these methods look like in action? Take a look at this recently published article in Solar Power World by Billy Ludt where he speaks with two pioneers in the industry, SolarCycle and SolarPanelRecycling.com.
“We had made phenomenal strides in making solar panels more efficient, cheaper, doing more PV systems and financing them, but had not yet figured out how to recycle these panels that were reaching the end of life, and creating a circular supply chain,” explains Suvi Sharma, co-founder of SolarCycle. “We needed to develop the technology to do this at scale. When you go to a solar panel manufacturing facility, you’ll see equipment process materials you won’t see anywhere else, right? Because it’s highly specialized. We need to do the same thing for recycling solar — for ‘de-manufacturing’ these panels.”
It’s also true that certain types of solar modules can be considered hazardous waste due to the presence of lead and cadmium telluride, so avoiding the landfill is critical for more reasons than one.
“If we do this right, the way we’re trying to, we can make solar the most circular industry in the world,” Sharma said. In addition to resource recovery, SolarCycle estimates that recycling each panel avoids the emissions of 97 pounds of CO2. “The solar panel product itself, the fact that it’s mostly glass and metals, and the fact that these large solar companies, most of them are very forward-thinking and progressive. They’re really looking at how to create a sustainable industry long term.”
Revitalizing Domestic Manufacturing in the U.S.
The solar panel recycling industry can play a critical role in the resurgence of U.S. manufacturing, too, by providing this steady supply of high-quality recovered materials. As the U.S. Dept. of Energy explains, the decline in U.S. manufacturing has weakened domestic supply chain infrastructure, competitiveness, and national security. “A decade ago, the U.S. was producing enough silicon wafers to supply 80% of domestic demand. As of February 2022, there was no domestic production of silicon wafers due to far lower prices abroad and Chinese tariffs. More than three-quarters of PV modules are made in China,” writes Charlie Hoffs for the Union of Concerned Scientists.
This means there are big opportunities for U.S. innovation — and revitalizing this sector with effective solar panel resource management will contribute significantly to economic growth in several ways. The Biden administration’s 2022 invocation of the Defense Production Act is driving the development of a domestic solar panel manufacturing industry, creating a framework for restoring U.S. leadership in the sector.
The Inflation Reduction Act (IRA) of 2022 is one of the most significant climate legislations in U.S. history, offering incentives to accelerate the transition to a clean energy economy. The Domestic Content Bonus Credit provision offers an additional 10% tax credit for projects that meet certain requirements. As Kelly Pickerel explains for Solar Power World, “This applies to solar panels, wind energy, and energy storage projects. The bonus is on top of the existing Investment Tax Credit (ITC) or Production Tax Credit (PTC), meaning that if a project already qualifies for a 30% ITC, incorporating domestic content could push that credit to 40%.”
How can a company qualify? “All manufacturing processes for steel and iron components must occur in the U.S. Additionally, specific components of solar panels, such as solar cells, frames, and back rails, must be made domestically. The IRS guidance also provides a safe harbor for determining whether a project meets these domestic content requirements, simplifying the process for developers,” writes Kelly Pickerel for Solar Power Online. This bonus is particularly relevant as the U.S. pushes to strengthen its clean energy supply chain by incentivizing domestic manufacturing, reducing reliance on foreign components, and creating jobs.
Fostering a network of partnerships with manufacturers is a key element of Electra’s approach to support U.S. manufacturing and ultimately help create a sustainable supply chain.
Job Creation Through Solar Panel Recycling
The final piece of the economic growth opportunities puzzle is the creation of jobs! We’ve already stated the solar industry is one of the fastest-growing sectors in the U.S. — in fact, the U.S. Bureau of Labor Statistics projects a 105% growth in solar installer jobs by 2028.
As of February 2022, the U.S. Dept. of Energy (DOE) reported: “The solar industry already employs around 230,000 people in the United States, at an average wage that is higher than the national average for most comparable positions. With such a dramatic increase in domestic demand, there is potential for significant expansion in U.S. PV manufacturing. At the growth rate necessary to achieve power-sector decarbonization by 2035, the U.S. solar industry could employ 500,000–1,500,000 people by 2030.” An article just published in late August 2024 by Solar Power World reports the U.S. solar sector has continued to experience the most growth of any other electricity-generating industry, now employing 364,544 people as of 2023 (U.S. DOE).
And it’s no wonder: solar installations exceeded 800,000 in the U.S. in 2023, setting a new record. Here’s another example recently published in PV Tech: the US Bureau of Land Management (BLM) has proposed 31 million acres of public land be used for the development of solar PV across 11 US western states.
The potential for job creation extends far beyond installation and maintenance. The growth in the entire solar panel recycling industry will require skilled workers in material recovery, operational roles in logistics, distribution, collection, tech development, and those facilitating reuse projects. Electra’s model is specifically designed to nurture this surge of job creation across the entire industry: by helping connect all of these essential players and making data transparent via our Solar Panel Registry platform, our collaborative efforts drive the industry forward.
For example, one of Electra’s valued partners, Emilie O’Leary, CEO of Green Clean Solar, has been a key player in expanding the solar industry's sustainability efforts. Their mission is to manage waste generated at every stage of a large-scale solar site, including installation, retrofits, and decommissioning across the United States. This approach not only ensures responsible end-of-life management, but also opens up new opportunities for skilled labor in areas such as recycling coordination, asset recovery, and project management.
We’re also proud to work with nonprofits that are making a tangible impact on the ground, ensuring solar panels find new life in communities that need them most. Brighten Haiti focuses on bringing renewable energy to underserved communities in Haiti, providing solar-powered solutions to improve living conditions and energy access. Equitable Solar Solutions, based in Colorado, trains volunteers to evaluate and safely install reused solar panels, empowering low-income communities with clean energy and valuable job skills. InterConnection Seattle works to refurbish and reuse electronics, including solar panels, for redistribution to schools, nonprofits, and low-income families, extending the lifespan of these valuable resources.
As our partner network grows, so too will the demand for a workforce trained in sustainable decommissioning and material recovery.
Market Viability and Long-term Economic Growth of Solar Panel Recycling
Solar panel recycling is not just a short-term solution. As the market continues to grow, the economic impact will become increasingly significant, driving resource recovery, the revitalization of U.S. manufacturing, and job creation.
Electra’s model is designed to scale nationally, contributing to economic growth across different regions — we’re just getting started in Washington, the first state to require manufacturers to collect and recycle solar panels at no cost to consumers. By adapting to local regulations, our approach can be replicated in other states. Other states are currently eyeing similar plans, such as California and Minnesota. In fact, at least eight states have laws on the books to study or regulate solar panel recycling, according to a National Renewable Energy Laboratory report.
But no one can deny that a wave of decommissioned solar panels are coming: 87% of all solar panels have been installed over the last six years, and thus will be reaching the end of their lifecycle by 2050… we need to act now.
We’re leading the way in this emerging market, but we need your help. Expanding our partnership network lays the groundwork for a national solar recycling industry — one that will drive long-term economic growth across the country.
Are you a solar panel owner, manufacturer, installer, recycler, collection hub, or part of a reuse project? We’d love to hear from you — get in touch by visiting us at https://goelectra.io.