What is Procurement's Approach to Solar Panel Recycling?
In the wake of growing solar capacity, as witnessed with nearly 600 gigawatts installed worldwide in 2024, the lifecycle of solar panels has become a focal point for procurement professionals.
Solar panels typically last for roughly 30 years, which signals that by 2050, the substantial solar photovoltaic (PV) infrastructure in place today will be retired.
This poses a critical opportunity for procurement strategies that prioritise recycling and resource recovery.
Solar capacity installations have soared, yet the global recycling rate for these panels hovers at approximately 14% as of 2021.
This figure suggests both challenges and opportunities for those in procurement to enhance the sustainability of their supply chains by focusing on the recovery of valuable minerals and metals when solar panels reach their end of life.
The necessity for action in procurement
Sonia Dunlop, CEO at the Global Solar Council, emphasises the need for strategic foresight in procurement: “Achieving the global target of tripling renewable energy capacity by the end of the decade is possible with solar.
"We need 1 TW of solar every year through 2030 and solar progress in more and more countries.”
This statement underscores the role procurement plays in preparing for future demands by investing in smarter grids, swifter permitting processes and substantial market investments.
Procurement has a vital part in shaping these advancements through well-planned resource allocation and investment in emerging technologies that promise greater efficiency and capacity.
Challenges and opportunities in waste management
The forecast by the IEA and IRENA indicates that if no solutions are implemented, solar PV waste could amass to 78 million tonnes by 2050.
This weight surpasses the Great Pyramid of Giza thirteenfold and introduces a critical opportunity for procurement to address waste through innovative recycling solutions.
Sending decommissioned panels to landfills not only exacerbates environmental concerns but also means a loss of significant storehouses of minerals.
Some of the valuable materials include silicon, silver and aluminium, all presenting considerable procurement opportunities when recycling processes are optimised for recovery.
Procurement teams can advocate for and invest in the development of infrastructure that can support extensive recycling initiatives, thus ensuring recovery and reintegration of these materials into new panels or other products.
Leading the charge: industry innovations
First Solar and SOLARCYCLE are pioneering the way forward with their solar panel recycling initiatives.
First Solar highlights its unique position in the market with in-house recycling capabilities and an impressive 88,000 tonnes of recycling capacity annually.
Procurement departments collaborating with companies like First Solar can strengthen their eco-friendly initiatives and compliance with sustainability targets.
Pat Buehler, Chief Product Officer at First Solar, adds: “We must act now to change course by actively reducing the carbon footprint of solar technologies while also investing in high-value recycling that addresses the end-of-life management of decommissioned solar panels in a sustainable manner.
"Our industry must embody sustainability, not simply pay lip service to it.”
This can guide procurement in setting sustainability benchmarks within their organisations.
Similarly, California-based startup SOLARCYCLE offers advanced solutions with its proprietary technology capable of extracting more than 95% of valuable solar panel materials.
Procurement specialists can draw insights from such innovations and encourage adoption within their supply chains, turning potential waste into a resource.
The pre-cycling initiative pioneered with ENGIE North America showcases procurement's role in anticipating and preventing waste accumulation by repurposing materials beforehand.
Jesse Simons of SOLARCYCLE, adds: “ENGIE’s pre-cycling provision sets a new precedent for the utility-scale solar industry by proving that circular economy principles can be achieved without complex regulatory intervention.”
Such forward-thinking approaches in procurement can serve as models across sectors.
As the renewable energy sector progresses, procurement strategies must innovate to mitigate environmental impact and optimise resource use, ensuring a sustainable future.
This involves not only responding to the immediate challenges of waste but also pre-emptively designing systems that cultivate circular economy principles in solar technologies and beyond.
