Solar Panel Recycling Market Trends
Growth Drivers
- Increasing Environmental Concerns – After a projected 30-year lifespan, solar panels are predicted to produce a significant amount of garbage, which is predicted to increase environmental issues all over the world.It is projected that by 2050, 78 million tonnes of PV panel trash will have been generated worldwide.
- Government Initiatives – Several legislation and regulations, including the European Waste Electrical and Electronic Equipment (WEEE) Directive, have established practical methods for managing waste from solar panels. Such policies are proposed by the governing bodies of many nations to support ecologically beneficial initiatives and encourage green energy projects. Government support in the form of service provider tax breaks and subsidies is another important factor fueling the market.
Challenges
- Expensive Recycling Process – Separating the materials such as glass, metals, and other rare elements from solar panels requires specialized equipment, which can be expensive to maintain. Besides this, the recycling process also requires skilled labor which is expensive to acquire.Although solar cells use clean energy and do not release any air pollution, certain toxic substances are used during the manufacturing process that affect the environment. Moreover, after the life cycle of solar cells they leave behind toxic residues which need to be recycled.
- Lack of Infrastructure
- Lack of Awareness
Solar Panel Recycling Market: Key Insights
The global solar panel recycling market is estimated to cross USD 325 million by 2027 on the back of growing adoption of solar power energy generation methods backed by favoring government regulations around the world. The market is anticipated to record a CAGR of around 21.4% over the forecast period i.e. 2019-2027. The market is segmented by shelf life into normal and early loss segments, out of which, the early loss segment is anticipated to witness significant growth in upcoming years owing to significant presence of products with less shelf life in the market. Additionally, the degradation of solar panels due to maintenance issues, unfavorable weather conditions and lack of standardization are some of the factors supporting the growth of this segment in the market.
The market is further segmented by process into thermal, mechanical and laser processes; by type into monocrystalline, polycrystalline, thin film and others, out of which, monocrystalline segment is influencing the growth of the market on account of its practical features like greater efficiency, superior grade material, longer shelf life and excellent heat resistance.
Companies in this market are focusing on untapped countries and regions in order to expand their operations. In addition, new manufacturers are also entering the market owing to the potential growth prospects pertaining to solar panels and increasing initiatives to recycle PV panels.
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Growth Drivers
Growing Environmental Concerns
The solar panels are expected to contribute to large amount of waste after completing their expected lifecycle of around 30 years, which is further expected to raise environmental concerns around the globe. According to IRENA (International Renewable Energy Agency), the total amount of PV panel waste around the globe is estimated to be 78 million tonnes by 2050. This is expected to contribute to pollution with waste released through landfill among other forms of reducing waste, driving many countries to work towards recovery and recycling PV panels. The adoption of effective waste regulations and growing investments related to recycling PV solar panels is expected to boost the growth of the market in future.
Favorable Government Regulations
Several laws and regulations, such as the European Waste Electrical and Electronic Equipment (WEEE) Directive, have laid out effective ways of managing waste related to solar panels. These regulations are proposed by governing bodies of various countries to encourage green projects. Additionally, government support in the form of subsidies and tax benefit to the service providers is one the major factors that are boosting the growth of the market.
Restraints
High Investment and Lack of Skills
The research and development activities pertaining to solar panel recycling involves huge investment. Additionally, there are lack of skills and infrastructure required for recycling PV panels. These factors are anticipated to dampen the growth of the market over the forecast period.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
37.6% |
|
Base Year Market Size (2024) |
USD 1.87 billion |
|
Forecast Year Market Size (2037) |
USD 118.54 billion |
|
Regional Scope |
|
