Opportunities in the Solar Panel Recycling Industry

đź“… 12/8/2024 đź•’ 1/20/2025 996 views

In recent years, China's photovoltaic (PV) industry has experienced rapid growth, establishing itself as the world's largest producer of solar panels. However, as the lifespan of these solar products approaches its end and newer models are developed, a significant trend known as the "decommissioning wave" is on the rise. Especially in Jiangsu Province, a key hub for the photovoltaic industry, many regions and enterprises are beginning to focus on the recycling and reuse of solar panels, working diligently to promote the healthy development of this sector.

The concept of recycling old solar panels is being acknowledged within the industry as the "next blue ocean." Ji Lei, the deputy secretary-general of the Jiangsu Photovoltaic Industry Association, mentioned that Jiangsu started its solar power station construction back in 2008. By the end of October 2024, the total installed photovoltaic capacity of Jiangsu has surpassed 56GW, placing it among the top three provinces in the nation. "Based on the standard lifespan of PV panels, which is 25 years, Jiangsu will soon experience a significant wave of decommissioned solar panels," he stated.

In Changzhou, a powerhouse in the photovoltaic sector, the local industry has begun early and has developed swiftly. In recent years, through collaboration between universities and enterprises, they have been striving to overcome the challenges of environmentally friendly disposal of expired solar panels and to foster a systematic development of the recycling industry. At the production workshop of Changzhou Ruisi Environmental Technology Co., Ltd., the reporters observed a recovered solar panel being processed through an automated disassembly line where it is effectively dismantled. Within five minutes, the once-operational panel was broken down into tiny pieces of glass, silver particles, and other materials.

"Our production line utilizes a high-pressure water jet grinding method to carry out the physical disassembly of old PV products and refine them for reuse," explained Zhuang Huliang, the company's deputy general manager. "This process does not introduce new pollutants, resulting in zero wastewater, exhaust, or waste residue, effectively alleviating ecological pressure and reducing energy consumption throughout the photovoltaic industry chain." He emphasized that the entire line achieved automatic dismantling and sorting, with a daily processing capacity reaching up to 30 tons, a material recycling rate exceeding 95%, and a reuse rate across all materials of over 90%, with more than 80% of the materials capable of being reused within the photovoltaic industry.

Zhuang Huliang further elaborated on their endeavors to promote the recycling industry, having spearheaded efforts to formulate 16 national or industrial standards, including "Methods for Recycling and Treatment of Crystalline Silicon Photovoltaic Modules." Their work encourages not only the standardization of the recycling process but also reinforces academic collaboration with institutions such as Changzhou University, Changzhou Institute of Technology, and Nanjing University of Aeronautics and Astronautics. They are exploring various pathways for the effective disassembly and technological advancements of solar panels.

Nevertheless, challenges persist in the current landscape. In Nantong, at the production facility of Nantong Riyu New Environmental Technology Co., Ltd., the newly developed "physical + wet method" production line for discarded silicon-based solar panels is operating efficiently. General Manager Zhu Jie shared that after undergoing procedures like feeding, washing, and screening, the line can phase out and recover valuable resources like non-ferrous metals and glass from discarded panels, achieving a recycling rate exceeding 95%. However, he stated, "A major challenge we face is the insufficient incoming volume of discarded panels. This shortage limits our ability to maintain continuous production, thereby constraining our technological progression and equipment optimization."

Professor Zhou Quanfa from Changzhou Institute of Technology, a long-time observer of the solar recycling industry, pointed out that China's recycling industry is still in its infancy. The market for recycling is relatively small, and many discarded photovoltaic components are not being processed through compliant enterprises. Thus, the development of this industry requires further guidance.

Zhou highlighted the valuable content within discarded solar panels, which includes glass, silicon, silver, copper, aluminum, and other materials. He warned that if these materials are not properly processed—perhaps burned or disposed of in landfills—they pose significant environmental risks. "It is imperative that these materials are handled by companies complying with environmental regulations to alleviate ecological pressures and conserve resources," Zhou stated.

According to Zhuang Huliang, two primary obstacles hinder the high-quality development of the photovoltaic recycling industry: market dynamics and technological challenges. "Scrapped solar panels represent industrial solid waste, and managing their recycling can be costly. Meanwhile, some microenterprises engage in unsustainable practices by neglecting environmental responsibilities and underpricing their services, thus interfering with the overall market," he said. Currently, much of the recycling technology remains immature, suffering from low recovery and efficiency rates, elevated energy consumption, and a lack of automation, which underscores the need for greater investment in research and development.

Industry insiders have pointed out that the existence of small workshops within the recycling space can be attributed to their neglect of environmental duties. They tend to focus solely on dismantling and selling valuable components like aluminum, often discarding the remaining materials through rudimentary methods like landfilling or burning—practices that not only breach regulations but also threaten the environment.

A pressing question remains: how can the recycling industry for old solar panels be better organized and regulated? National authorities such as the National Standardization Administration and the National Development and Reform Commission have initiated 62 national standards for circular economic practices in 2024, with Changzhou Ruisi Environmental Technology Co., Ltd’s project on recycling retired photovoltaic modules being a notable case. As the first standardized pilot project in the renewable energy sector and the broader photovoltaic recovery industry in the country, Zhuang Huliang expressed optimism regarding the collaboration that lies ahead. "As the project lead, we plan to establish a collaborative platform for component recovery enterprises, upstream PV manufacturers, and downstream material reuse providers, thereby enhancing the entire supply chain," he explained.

Interviewed businesses expressed hope for more regulatory guidance and oversight in the photovoltaic recycling industry to support its structured growth. Moreover, they are eager to see more technological innovation aimed at enhancing the recycling of old solar panels.

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