Market Research Report
Solar Panel Recycling Market - Forecasts from 2022 to 2027
|Solar Panel Recycling Market - Forecasts from 2022 to 2027|
Published: March 1, 2022
Knowledge Sourcing Intelligence
Content info: 124 Pages
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The solar panel recycling market was valued at US$94.012 million in 2020 and is expected to grow at a CAGR of 26.18% over the forecast period to reach a total market size of US$478.760 million by 2027.
Solar energy has been widely adopted and utilised in the existing energy mix during the last decade. The average expected lifetime of solar panels used on ground-mounted, building-integrated photovoltaic (BIPV), or floating solar panels is 30 years. These panels typically contain cadmium, lead, and several toxic chemicals, and it is critical to remove or recycle these toxic elements from the environment in order to avoid hazardous altercations.
Rising customer awareness of the increased benefits of sustainable energy sources, as well as subsidies provided by provincial governments, is a critical factor driving market growth, as is an increase in the number of installations of solar photovoltaic modules. Rising adoption of solar panels, rising government regulations, increasing effective disposal of solar panels, and an increase in the number of solar panel installations as an alternative to other non-eco-friendly sources are the key drivers driving the solar panel recycling industry, among others. In the European Union, legislation (Directive 2002/96/EC on WEEE) was drafted to establish collection programmes in which customers may return their used waste equipment for free. The goal of the directive is to increase the recycling and/or re-use of such products. The objective of the directive involves collecting 4 kg of such waste per resident per year for waste electrical and electronic equipment (WEEE) from households. Furthermore, rising technological advancement and modernization in manufacturing processes, as well as rising research and development activities in the industry, would provide new opportunities for the solar panel recycling market throughout the projected period. However, a lack of awareness regarding solar panel recycling is a key restriction that would further challenge the growth of the solar panel recycling market.
The solar panel recycling market is expected to expand at a rapid rate in the Asia-Pacific region. With growing environmental concerns and industrialisation, particularly in Asia-Pacific, the region's solar power-producing capacity has acquired significant traction. Countries such as China and India are prominent solar power generating countries in the region, with a high percentage of solar panel installations. China manufactures around 71% of global solar panels capacity. Furthermore, due to the existing and ageing infrastructure, the solar panel recycling market is gaining traction.
Solar panels have a functional life of 20 to 25 years and must be changed after that. Photovoltaic modules contain heavy metals and so cannot be disposed of in landfills. As a result, the solar panel recycling business has enormous potential. The solar panel can be dismantled into multiple parts and recycled using a variety of methods, including mechanical, thermal, chemical, laser, and combinations thereof. The total volume of accumulated global solar panel waste is expected to reach 60 to 78 million tonnes by 2050, according to the International Renewable Energy Agency (IRENA). As a result, the rise in solar waste is projected to fuel the worldwide solar panel recycling industry. Furthermore, solar energy is both affordable and ecologically beneficial. According to the International Energy Agency, solar PV is the new leader in power supply and is set for rapid growth. From 2020 to 2030, solar PV will increase by 13 % annually, providing nearly one-third of the energy consumed annually. . Hence, the global demand for solar energy is growing.
Recycling is expensive The lack of awareness and general interest in developing countries in the Asia Pacific region is likely to stifle market expansion. Recycling is more expensive than landfilling, and the value of recovered scraps is less than the original. Thereby, there is minimal interest in recycling. Solar panel recycling is still very expensive. Nevertheless, researchers are exploring novel recycling technologies. The waste contains silicon, calcium, lead, and other toxic compounds (including carcinogens) that cannot be removed without breaking the panel.
COVID-19's Impact on the Solar Panel Recycling Market:
The global solar recycling market has stagnated due to the COVID-19 pandemic. China, which has the most photovoltaic installations as well as the largest manufacturing of photovoltaic solar panels, was the epicentre of the pandemic. This attribute is expected to affect the global solar supply chain. The pandemic, on the other hand, has crippled power consumption and production, which may limit the growth of the solar panel recycling market. Furthermore, due to the suspension of industrial and construction activities, the country is facing a wave of low-capacity additions.
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