Since the beginning of 2024, various regions have aggressively promoted the replacement of consumer goods and large-scale equipment renewal, yielding positive resultsHowever, a pressing question has emerged: what happens to second-hand goods and outdated equipment once they are replaced? In response, this report initiates a series under the banner of "Streamlining the Recycling Chain," aiming to explore existing challenges in recycling systems, enhance resource utilization, and bolster waste recycling strategies.

According to projections by the China Photovoltaic Industry Association, a significant wave of decommissioned photovoltaic (PV) modules is expected to emerge by 2025. Following that, a peak in discarded PV modules will occur after 2030, with the volume estimated at around 18 GW, translating to approximately 140,000 tons of wasteBy 2040, the cumulative amount of decommissioned PV modules could reach 253 GW, roughly 20 million tonsGiven this impending surge in decommissioned PV modules, how prepared is China for large-scale PV module recycling? What obstacles does the industry still face that need to be tackled?

The potential for development in the recycling of PV modules is enormousRecycling PV modules involves disassembling them to recover and reuse their materialsThe primary components of PV modules consist of silicon cells, glass, ethylene-vinyl acetate (EVA), back sheets, and other materials.

Xu Junyu, a project officer at the Photovoltaic Recycling Industry Development Cooperation Center, noted, “Currently, discarded PV modules mainly come from power plants and production facilities, with only minimal amounts generated during transportation.” Some of these discarded modules end up with recycling companies, while others may temporarily be stored in warehouses until conditions allow for their dismantling and processing.

As a new form of solid waste, the harmless disposal and effective recycling of decommissioned PV modules not only present substantial circular economy benefits but also deliver significant environmental advantages. “From a market perspective, the potential for PV module recycling is immense, and the benefits are evident

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This market is estimated to exceed 100 billion yuan,” stated Yu Xiaoming, a senior investment advisor at Jufeng InvestmentAt the national level, efforts to propel PV module recycling initiatives have already commencedIn 2023, there was a push to establish a comprehensive recycling system, encompassing green design, standardized recycling, high-value utilization, and harmless disposal of wind and solar energy equipment, aiming to fill the last gap in the green low-carbon circular development of the wind and solar industry, contributing to achieving carbon peak and carbon neutrality.

As the recycling market begins to scale, an increasing number of players are venturing into the PV recycling industryA representative from JinkoSolar stated that the company's recycling strategy is focused on two main areas: first, upgrading technology and equipment to prepare for the compatibility with different types of module recycling; second, constructing recycling channels that capitalize on JinkoSolar's supply chain advantages to maximize the value of recycled materialsThe State Power Investment Corporation (SPIC) has been tackling key technological issues related to the commercialization and domestic manufacturing of crystal silicon PV module recoveryIn December 2024, a set of efficient integrated processes and domestically manufactured equipment for crystal silicon PV module recycling, developed jointly by SPIC's Yellow River Company and its PV Industry Innovation Center, was included in the fourth batch of major technical equipment categories issued by the National Energy Administration.

Yet, there remains a significant shortfall in sourcing adequate supply for the marketNumerous companies are involved in the on-site collection of PV modules, but most operate on a small scale, limiting their business operations to local markets.

“Shipping PV panels from other provinces is not cost-effectiveFor example, transporting panels from Guangdong to Suzhou incurs transportation costs of several dozen yuan per panel, making it challenging to break even,” a responsible person from a recycling company in Kunshan, Jiangsu province said

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They only collect batches of over 500 panels that can fill an entire truckAfter collection, the company dismantles the PV panels and sells valuable materials like silicon to companies that require them.

Liang Zhenpeng, chief consultant at Zhifan Coasts, pointed out that the difficulty in making profits is one of the climactic obstacles confronting the PV module recycling industryOn one hand, the large-scale decommissioning period has not yet arrived, resulting in insufficient material flow for the market, and the industry has yet to establish a scaled industrial chain, leading to high costs in dismantling, transporting, and processing discarded modulesOn the other hand, some companies are limited by technology, employing relatively simple processing methods that yield fewer reusable materials, resulting in considerable resource wastage.

The complex structure of PV modules, which includes various materials, necessitates efficient technical support for their separation and recovery. "Particularly, challenges exist in processing fluorine-containing back sheets, removing EVA layers, and recovering precious metals," said Xiang Weili, Executive Director of Sullivan’s Greater China regionWhile thermochemical methods can facilitate material separation, they often release harmful gases, whereas solvent-based methods face issues associated with the disposal of organic wastewater.

Currently, technology for dismantling PV modules primarily revolves around three methods: physical, pyrolytic, and chemicalPhysical methods are relatively straightforward but yield lower material purity, while chemical methods offer superior component purity but consume other materials during processingCombining physical and chemical methodologies is becoming a significant direction for advancing PV recycling efficiency.

The ongoing development of PV module recycling technologies is heavily focused on crystal silicon modulesThe critical goal of recycling old PV modules is to recover rare metals and valuable materials, thereby reducing resource wastage while minimizing environmental pollution

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Harmful substances such as lead, sulfuric acid, cadmium, and tin, if not managed properly, can have severe impacts on the environment.

At present, illegal recycling and dismantling operations are rampant in the PV module recovery landscapeSmall-scale recycling workshops do not bear the environmental processing costs associated with recycling, allowing them to offer higher prices for discarded components, which in turn hampers the profitability of legitimate recycling enterprises and leads to a market disruption. “To reverse the prevalent rough processing practices in small workshops, PV module recycling companies must possess the necessary qualifications and technical expertise, backed by scientific and standardized dismantling processes that ensure reliability and safety,” Liang Zhenpeng emphasized.

A significant barrier to the development of the PV component recycling industry is the absence of regulatory policies and standardsThe existing system lacks comprehensive guidelines for the recycling and processing of PV modules, and market guidance and incentivizing policies require further enhancement. “The definition of when a PV module is considered waste needs clarification; there are gaps in the technology, standards, and management policy spectrum throughout the lifecycle from waste to dismantling, decomposition, and reuse,” stated a concerned staff member from JinkoSolar.

Facilitating recycling channels is an urgent priority for the healthy growth of the PV module recycling sectorBy 2025, the responsibility mechanisms for handling retired equipment from centralized wind farms and solar power stations should be established, and standards for recycling retired wind and solar equipment ought to be further refinedKey technological breakthroughs in resource recycling must also be achievedBy 2030, the entire process of recycling wind and solar equipment should reach maturity, with improved recycling models and substantial enhancements in recycling capacity aligning with the scale of decommissioning, alongside a more comprehensive standardization of the sector

A cluster of recycling economies centered on decommissioned wind and solar equipment should emerge.

As regions continue to promote the development of the photovoltaic industry, they are also actively exploring pathways to advance the PV module recycling sector by leveraging policy directions, innovative technologies, and industrial collaborations to encourage green development in PV recycling.

Among the crucial steps for this initiative is the establishment of a comprehensive recycling systemXiang Weili recommends supporting PV equipment manufacturers through various methods of recycling, whether independently, collaboratively, or through outsourcing, to set up regional recycling warehouses and employ online monitoring systems, integrating Internet platforms with PV module recyclingThis would allow real-time tracking and reporting of the number of decommissioned PV modules each year from power generation companiesFurthermore, encouraging the integration of big data, the Internet of Things, and cloud computing technologies into recycling systems will render the recycling processes measurable, reportable, and verifiable.

Moreover, active participation from PV enterprises is vital. "With the growth of the PV industry and advancements in technology, more companies are beginning to value the comprehensive lifecycle management of PV modules and are experimenting with establishing relevant recycling frameworks," noted Yu Fenghui, a senior researcher at the Pangu Institute.

Xu Junyu further advocated for empowering end-user enterprises in the PV sector to spearhead the formation of a new recycling system for obsolete PV productsThis entails leveraging sales, logistics, and operational networks to build reverse logistics recycling frameworks for large centralized photovoltaic power stations while identifying pilot locations for self-recycling initiatives in industrial parks, townships, and transportation hubs, using “Internet+” concepts to enhance recycling compliance.

“As technology continues to advance and market demands rise, industry concentration will gradually escalate, prompting related companies to achieve more significant advancements in technical innovation, resource utilization, and environmental protection, thereby propelling the sustainable growth of the photovoltaic sector,” concluded Zhang Xinyuan, Executive General Manager of Beijing Kefaode Technology Development Co., Ltd.

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