Planning is a major step in a solar project. From engineering design to financing to permitting, equipment procurement, and scheduling construction labor and logistics, the process is complex and detailed.
But it’s not comprehensive. To complete the planning process, thorough development of maintenance and system end-of-life management must take place. Ideally, the plan would consider hardware optimization that extends the lifespan of the system well beyond product warranty expirations to maximize sustainability. Then, once the equipment has run its course, the project manager would plan to recycle.
Oftentimes, however, systems are decommissioned well before equipment is at end-of-life. In this case, the astute project manager would plan to remarket quality hardware. Both scenarios are important to put a plan in place to ensure hardware is responsibly disposed of rather than thrown in landfills.
This article provides expert advice to plan for decommissioned PV hardware from Janette Freeman at FabTech Solar Solutions. We had the opportunity to interview Janette following the release of her eBook, End-of-Life Solar Planning Resources, which discusses what to do with solar panels that are damaged, decommissioned, or unusable. FabTech has been an EnergyBin member since 2017.
EB: Janette, tell us about FabTech Solar Solutions. What made you decide to venture into solar?
FabTech has been in business for 25 years. We just celebrated our anniversary! The company got its start in refurbishing IT hardware. Bob Lawrence, Founder and President, has an engineering background. Several years ago, he came across some solar panels that needed to be refurbished. Eight years later, the company now fully specializes in solar panel refurbishment, remarketing, and recycling.
EB: What about your role with the company, and what motivates you to tackle your daily work?
I am the Director of Business Development, which means I’m looking for end-of-life solar panels and creating solutions such as recycling or reuse. I’ve always been purpose-driven, and I get excited about working towards climate change solutions in this niche. I’m motivated by doing my part to solve issues like diverting solar panels from landfills, responsible recycling, and providing low-cost solar products for every budget via reuse.
EB: In your eBook, End-of-Life Solar Planning Resources, you reference a growing problem. Isn’t solar energy supposed to be our “best friend” in reducing our carbon footprint? Explain this growing problem. What’s at the heart of this issue?
First of all – Yes! – what’s happening in solar is very exciting, and it is our best friend when it comes to transitioning to a renewable energy infrastructure. But with every emerging market comes issues on the back end that need resolving.
The growing problem is that there is an estimated 78 million tons of global solar waste that will be generated by 2050, according to the International Energy Agency. That number is likely understated because over the last decade, we’ve seen falling prices and improved efficiencies in newer modules. These factors have contributed to a strong incentive to replace solar panels much earlier than their intended lifespans. I’ve personally heard by one estimate that this decommission uptick could lead to 50 times more waste than what has been predicted.
Part of the underlying issue is that solar panel reuse and recycling programs are not yet prepared to handle such a huge volume of material. But we can’t let that deter us. Instead, we must work on further developing a circular economy to ensure modules are installed until they reach their true end-of-life. Then, we must properly recycle them to recover valuable materials that can be repurposed for new products. We can’t expect to mine raw materials indefinitely.
There are many players in the market, like FabTech and EnergyBin, who are working on solutions. We’re already seeing companies choose reuse and recycling over landfilling, and I expect the industry to make great strides in developing the infrastructure to support these efforts.
EB: We agree with your sentiment that there are many companies who are working toward reuse and recycling. FabTech is certainly a leader in this space, specifically in your support of large-scale decommissioning projects. Of the solar panels you see coming offline, how many are actually at their end-of-life?
I would say 85-90% of decommissioned panels aren’t at their end-of-life. They’re not even broken. In most cases, they’re being replaced with higher efficiency modules.
The question is not so much whether they’re still functioning. Rather, the real question is whether they have resale value. Furthermore, we’d need to determine if the resale value provides a large enough margin to justify moving them into the secondary market.
For example, a low wattage panel may not retain enough value to cover the costs of transportation, handling, remarketing, and reselling that panel. More outlets for secondary panels are needed, especially for lower wattage panels. I believe the demand needs to flow from emerging international markets.
Even if the panels are low wattage, asset owners should still search for off-takers of their panels, whether they resell or donate them, because whatever they can successfully off-load will cut down on their recycling costs.
EB: What are some lessons you’ve learned about the resale market that you would share with your industry peers who may be interested in expanding their business models to include secondary market solutions?
Our business model is unique in that we sell direct to the consumer. The buyers of these panels are usually do-it-yourself individuals, small installers, customers who are putting them on their RVs, boats, and farms, etc. on-grid and off-grid.
Our goal is to continue to build a direct-to-consumer market. It’s important to us to create excellent, personalized customer service, provide technical assistance, and offer add-on accessories for all that they need to build a full solar system. We sell all-in-one kits to make it as easy as possible.
The biggest challenge we’ve faced is the overall labor cost necessary to sort, clean, repair, test, and remarket the incoming decommissioned solar panels. It’s a large, varying inventory. We’re shipping thousands of orders in small lots.
Additionally, there’s a constant need for marketing and finding new customers. The customers we work with aren’t typically repeat buyers. Yet, the market has been consistently increasing. New customers are always emerging.
Beyond labor and marketing, we’re always looking for reputable dealers in emerging international markets. We’ve found EnergyBin to be helpful in connecting us to prospective partners and wholesale buyers in other countries.
EB: Thank you for that. We would add from a market insight perspective that only about 3-7% of the solar panels listed for resale on EnergyBin are used. These products tend to be packaged with a limited warranty and have been tested for safety and performance after undergoing refurbishing. Resellers, like FabTech, have found success in pairing resale with value-added services, such as decommissioning, to diversify their revenue portfolios. What about buyers? What advantage is there for buyers to shop the resale market?
The obvious benefit is the low price, which could be as low as 25% of new. For many consumers, solar is too expensive. The secondary market makes solar available to buyers who otherwise couldn’t afford it. It also allows buyers to make small purchases whereas a distributor might require a buyer to place a minimum quantity order of one container or one truckload.
If I could extend one tip to buyers, it would be to buy from a reputable seller, preferably one who offers some kind of warranty, customer service, and technical help. At FabTech, we offer a one-year warranty with every purchase of used panels, so that the buyer has time to receive them, install them, and ensure they’re working appropriately.
I should mention that we’re also seeing a growing demand for replacement panels. The reality is many older models are no longer produced. So, the secondary market may be a buyer’s best bet for finding that replacement panel.
EB: Today, the solar panel recycling sector is complex and expensive. Why is that, and what advice do you have for solar companies and asset owners to effectively navigate the recycling process?
Solar panels are meant to be sturdy. They’re meant to withstand the elements. And they’re made of a variety of materials. The complexity of recycling has to do with separating these materials from their sturdy framework, which makes the process expensive. In today’s economy, the process costs more than the actual value of the materials recovered.
However, I anticipate that as the number of recyclers in the market and the volume of panels to be recycled increase, the costs will come down. It’s important that we continue to scale the process.
I wrote the End-of-Life Solar Planning Resources eBook to help companies navigate the recycling process. First, conduct your due diligence to select a recycler who recycles the entire panel and not just the aluminum frame. There are less expensive recyclers who claim they are properly recycling, but instead they send everything but the frame to the landfill.
Second, verify the recycler’s credentials, such as R2, e-Stewards, and/or ISO certifications. You’ll also want to check that they are complying with EPA standards. SEIA’s National PV Recycling Program is a network of recycling and refurbishment providers who come with credentials.
Third, factor in transportation costs. Shipping costs can add up quickly, so be sure to have recyclers include them in your quote. Furthermore, consider shipping to the closest recycling destinations to minimize transportation costs.
EB: You mentioned donating as one option to divert solar panels from landfills. What kinds of solar panels qualify for donation, and do you have a story to share about how FabTech donated used panels for a worthy cause?
Regarding the condition, solar panels allocated for donation need to be functioning and desirable because the cost to ship to other countries is high. We don’t want to create more problems by shipping solar waste.
FabTech partners with Brighten Haiti, a non-profit organization that provides solar power to schools, hospitals, civic buildings, and families that lack electricity. Brighten has apprenticeships to train locals on installation and maintenance. Over 70% of the Haitian population does not have access to electrical power. We supplied panels for schools to install lighting and ceiling fans.
We’ve also donated to low-income communities in the United States to help with housing projects. And for fun, we’ve donated to artists who have repurposed solar panels into sculptural artwork that help promote solar as a reliable energy source.
We’re always open to new partners who can handle the logistics of delivering donations to communities in need.
EB: Whether a company is reselling, donating, or recycling solar panels, there are specific palletizing guidelines you recommend. Would you please explain what these are?
Palletizing and packaging are very important, especially if solar panels are headed for the reuse market. Improper packaging can lead to damage of the assets.
Above all, solar panels need to be stacked on durable pallets. The pallets should not crumble under their weight. Use pallets that are near the same size as the modules. Stack 25-30 modules high per pallet. Band the modules both ways – vertically and horizontally – to prevent sliding during transportation. Preferably shrink wrap the pallets for added protection.
Broken panels should also be palletized, not thrown in bins. Recyclers are unable to receive them in this manner.
EB: What can companies do today to commit to reuse and recycle even if they aren’t currently dealing with used solar panels?
The first step is to think about and plan for reuse and recycling. I’ve spoken with many companies who aren’t ready yet but are putting plans in place.
It’s important to have a company policy that calls for recycling end-of-life panels. The policy can be publicized to inform your stakeholders. You can budget for it when you’re planning installations. There are always some damages that occur during the installation process. Planning for that cost will help your company stay on budget. Several years into the project, you’ll want to investigate what the panels could be worth by year 10 or 15.
The other piece is to join in the discussions. Use your voice to encourage your colleagues to reuse and recycle. There’s evidence that the greatest influencers are early adopters who set the example for others to follow. When PV owners know fellow PV owners who reuse and recycle, there’s a general positive attitude toward these solutions, and the trend increases.
Now is the time to create a policy and to work with your team to research your options, conduct a cost analysis, and put a plan in place.
EB: What if someone is sitting on the fence regarding secondary solar market solutions? If you only had 30 seconds to convince them about the benefits of reuse and recycling, what would you say?
With the future landfill issue being a primary criticism against solar development, everyone who benefits from solar in any way owes it to their customers to work with sustainable end-of-life solutions, such as reuse and recycling, rather than landfilling. When supporting communities and providing solar energy, you can’t turn around and flood community landfills with solar waste. As an industry, we can’t claim to be a clean energy source if we leave a trail of waste behind.
The benefit of having a company policy that calls for reuse and recycling before the government mandates companies to do so allows you to be a leader and influence others. Your marketing and public relations will reflect your core values. You’ll reduce risk from incurring future waste. You’ll increase your ESG standing. In short, we just can’t wait until we’re mandated to do the right thing.
A special thanks…
To Janette Freeman for sharing best practices from FabTech Solar Solutions to help companies plan for solar panel reuse and recycling.
More Resources
Resell or Recycle: A Guide to Handling Used Solar Panels