Solar Panel Recycling Market Size, Share, Growth, Forecast 2030

Solar Panel Recycling Industry Prospective:

The global solar panel recycling market size was worth around USD 95.4 million in 2022 and is predicted to grow to around USD 1329.4 million by 2030 with a compound annual growth rate (CAGR) of roughly 39% between 2023 and 2030.       

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Solar Panel Recycling Market: Overview

Hazardous substances like silicon, silver, aluminum, copper, gallium, lead, and cadmium are found in solar panels. Their widespread installation has increased the demand for recycling to reduce trash production. Recycling solar panels includes a variety of processes, including decommissioning, collecting, and sorting. It reduces the greenhouse (GHG) gas emissions of photovoltaic (PV) modules and stops the discharge of potentially harmful compounds from waste streams. Several producers are already cleaning recycled materials for use in fresh panels or other parts like glass foam.

Key Insights

• As per the analysis shared by our research analyst, the global Solar Panel Recycling market is estimated to grow annually at a CAGR of around 39% over the forecast period (2023-2030).
• In terms of revenue, the global Solar Panel Recycling market size was valued at around USD 95.4 million in 2022 and is projected to reach USD 1329.4 million, by 2030.
• The global Solar Panel Recycling market is expected to be driven by several factors such as increasing environmental concerns and rising government initiatives.
• Based on the process, the mechanical segment is expected to dominate the market over the forecast period.
• Based on the product, the monocrystalline segment is expected to hold the largest market share over the forecast period.
• Based on the shelf life, the early loss segment is expected to grow at the fastest rate over the forecast period.
• Based on region, the Asia Pacific is expected to dominate the market over the forecast period.

Solar Panel Recycling Market: Growth Drivers

Wide adoption of solar PV systems drives market growth

A reliable source of inexpensive electricity generation is solar photovoltaics (PV). Launched in 2011, the US Department of Energy's SunShot Initiative seeks to lower the cost and increase the viability of solar PV systems. Lower prices per kWh for household, utility-scale, and commercial solar were specified as goals for the year 2020. The SETO has established new cost objectives for 2030 that call for a 50% cost reduction of solar PV systems. Additionally, the number of solar PV installations has increased significantly throughout the world as a result of the dropping costs of solar PV systems, which are due to government efforts, subsidies, and competitive bidding procedures. The market for solar PV is anticipated to increase, notably in the US, India, and China, driven by the desire for sustainable and clean energy. Costs will be reduced even further by the economies of scale. As a result, it is anticipated that increased solar power production will result from lower solar PV system costs. During the projected period, this will fuel the expansion of the worldwide solar panel recycling market.

Solar Panel Recycling Market: Restraints

Technological complexity impedes market growth

Solar panels are complex devices made of numerous layers of glass, metals, and semiconductors. In terms of technology, disassembling and recycling these parts can be difficult and may demand specific tools and knowledge. Therefore, technological complexity might be a major restraining factor that hamper the solar panel recycling industry growth during the forecast period.

Solar Panel Recycling Market: Opportunities

Increasing government initiatives to offer a lucrative opportunity for market expansion

The increasing government initiatives are expected to offer an attractive opportunity for solar panel recycling market growth during the forecast period. For instance, in March 2023, Queensland made measures to lower the amount of electronic garbage (e-waste) produced per person, and it is the state in Australia with the most solar power installations. The new draft Queensland E-Products Action Plan 2023–2033, which was unveiled at Planet Ark Power by Queensland Minister for Energy Mick de Brenni, is intended to promote more e-product reuse and repair. According to the proposal, Queensland would strive to collect 80% of all electronic trash produced, with 90% of the material being salvaged for reuse. The Smart Energy Council (SEC), which is leading the industry-led Solar Stewardship Scheme, will select participants and places to redirect end-of-life solar panels for recovery. The Queensland Government will initially contribute more than $250,000. Therefore, these initiatives are expected to offer a lucrative opportunity for revenue growth.

Solar Panel Recycling Market: Challenges

Lack of regulatory frameworks and economic viability pose a significant challenge to the industry's growth

There might not be sufficient guidelines and criteria for the recycling of solar panels in certain regions. The growth of recycling practices and infrastructure may be hampered by a lack of established norms. Furthermore, recycling solar panels may be expensive, particularly for older, less effective panels. Sometimes the expense of recycling, transportation, and collecting outweighs the value of the products that are recovered. Investment in recycling plants may be discouraged by this financial difficulty. Thus, this is expected to pose a major challenge to the market expansion.

Solar Panel Recycling Market: Segmentation

The global Solar Panel Recycling industry is segmented based on process, product, shelf life, and region.

Based on the process, the global solar panel recycling market is bifurcated into thermal, mechanical, and laser. The mechanical segment is expected to dominate the market over the forecast period. Physically disassembling solar panels into smaller parts, such as glass, aluminum, and silicon, which may subsequently be recovered and reused, is known as mechanical recycling. This technique is popular because it is easy to use, inexpensive, and may recover a significant portion of the solar panels' precious components.

Based on the product, the global Solar Panel Recycling industry is bifurcated into monocrystalline, polycrystalline, and thin film. The monocrystalline segment is expected to hold the largest market share over the forecast period. Due to their effectiveness and reliability, monocrystalline solar panels have been widely used in household, business, and utility-scale solar systems. The need for monocrystalline-specific recycling solutions grows along with the usage of monocrystalline panels. Thereby, driving the segment expansion.

Based on the shelf life, the global market is bifurcated into normal loss and early loss. The early loss segment is expected to grow at the fastest rate over the forecast period. The market for recycling solar panels is expanding as a consequence of the rising demand for recycling services brought on by the early loss of solar panels. There is an increasing demand for ethical and environmental recycling solutions as more and more solar panels approach the end of their useful lives and are deactivated. Recycling solar panels helps to recover important materials and components that may be utilized in the production of new solar panels, which reduces waste and reduces the environmental effect of solar energy production. Thereby, driving the segment growth.

Solar Panel Recycling Market: Report Scope

Solar Panel Recycling Market: Regional Analysis

Asia Pacific is expected to dominate the market over the forecast period

The Asia Pacific is expected to dominate the global solar panel recycling market over the forecast period. With significant investments being made in solar installations by nations like China, India, Japan, and South Korea, the Asia Pacific area is a global leader in the use of solar energy. The potential volume of end-of-life solar panels for recycling increases along with the region's installed base of solar panels. For instance, according to the Ministry of New and Renewable Energy, India now ranks fourth globally in the deployment of solar PV as of the end of 2021. As of the 30th of November 2022, the installed capacity of solar energy was around 61.97 GW. India's solar tariffs are now extremely competitive and have reached grid parity. Moreover, the adoption and sustainability of renewable energy have been supported by a variety of policies and incentives developed by governments throughout the Asia-Pacific region. To encourage proper disposal and recycling practices, certain nations are concentrating on putting legislation and standards into place for the recycling of solar panels. Thereby, driving the market growth in the region.

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Europe is expected to hold a significant market share over the forecast period. Numerous nations in Europe have set high goals for the use of renewable energy, making it the region leading the world in this field. Because of this, solar panel installation has increased significantly, which will raise recycling needs significantly in the future. Moreover, the circular economy, which emphasizes resource efficiency and waste reduction, has gained popularity in Europe. By recovering valuable resources and lessening the environmental effect of technological waste, solar panel recycling is consistent with these values. Thus, driving the market growth in the region.

Solar Panel Recycling Market: Competitive Analysis

The global Solar Panel Recycling market is dominated by players like:

• SILCONTEL LTD
• Echo Environmental LLC
• First Solar Inc.
• Canadian Solar
• Silrec Corporation
• SunPower Corporation
• Reiling GmbH & Co. KG
• Trina Solar
• Aurubis
• Envaris
• SiC Processing GmbH
• Yingli Energy Co. Ltd.
• Hanwha Group

The global Solar Panel Recycling market is segmented as follows:

By Process

• Thermal
• Mechanical
• Laser

By Product

• Monocrystalline
• Polycrystalline
• Thin Film

By Shelf Life

• Normal Loss
• Early Loss

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa