PV recyclers face several economic challenges that hinder the development of a sustainable solar panel recycling industry. Here are some key issues:
- Cost vs. Landfilling: Currently, it is cheaper to dispose of solar panels in landfills than to recycle them. This economic disadvantage makes recycling less appealing to manufacturers and operators.
- Lack of Economic Viability: The cost of recycling solar panels is high compared to the value of recovered materials, making it economically challenging for recyclers to operate without subsidies.
- Need for Subsidies: To make recycling economically viable, there is a recommendation to set aside $10-$18 per module to cover recycling costs. This level of subsidy could help establish a profitable industry by 2032.
- Regulatory and Data Challenges: A lack of data on recycling rates and inconsistent regulations create uncertainty and hinder the creation of supportive policies. This makes it difficult to incentivize recycling over landfilling.
- Potential Economic Benefits: Despite these challenges, the market for recyclable materials from solar panels is projected to grow significantly. Rystad Energy estimates that the value of these materials could exceed $80 billion by 2050, offering substantial economic opportunities if the industry can become sustainable.
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