How India Can Achieve Circular Economy in Solar PV Industry

Policymakers in India are actively working towards transitioning the country to a circular economy across various sectors. However, solar photovoltaic (PV) sector still lacks clear directives on waste management.

In recent years, several initiatives have been introduced to address this gap. For example, in 2022, the Ministry of Environment, Forests and Climate Change’s revised electronic waste (e-waste) management rules, bringing solar photovoltaic cells, panels and modules under its purview. Similarly, the Green Credit Programme under the Environmental Protection Act, announced in the 2022-2023 Union Budget, promoted green growth and sustainable practices. Additionally, the Government of India launched several schemes to encourage solar power generation in the country, such as the Solar Park Scheme, VGF Schemes, CPSU Scheme, Defence Scheme, Canal bank & Canal top Scheme, Bundling Scheme, Grid Connected Solar Rooftop Scheme etc.

Read More: India's Green Energy Capacity to Rise Significantly, Can Miss 2030 Target: S&P

India’s Growing Renewable Energy Capacity

If terms of figures, India's total renewable energy capacity grew by 13.5 per cent (or 24.2 GW) in one year to reach at 203.18 GW in October 2024, up from 178.98 GW in October 2023, as per another Ministry of New and Renewable Energy release.  

With a renewable energy target of achieving 500 GW from non-fossil sources by 2030, India is only five years away from its deadline and is ramping up its solar power industry to produce cleaner energy. Amid this rapid increase in deployment of solar PV panels, the need for proper disposal and recycling of solar PV panels becomes urgent.

Subsidies for Promoting Solar Power

The Government of India offers various subsidies and incentives to promote solar power adoption, including the Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) Scheme, launched in March 2019, which provides financial support for solar pumps and plants in rural areas. The PM Surya Ghar Muft Bijli Yojana, launched in February 2024, offers up to 40 per cent subsidy for residential solar installations.

Additionally, the National Solar Mission, launched in January 2010, drives large-scale solar projects, reducing costs through competitive bidding. Other key initiatives include the Indian Government's Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules, aimed at enhancing domestic manufacturing capacity to a gigawatt scale with a substantial investment of Rs 24,000 crores.

Furthermore, the Delhi Solar Energy Policy 2023, an initiative by the Delhi government, targets expanding the city's solar capacity to 4,500 MW by 2026-27, blending 750 MW of rooftop solar within the state with about 3,750 MW of utility-scale solar from outside.

Read More: Government Set to Boost Solar Manufacturing with New ALMM for PV Cells

The Current Problem: Waste Management in Solar PV

Solar panels have limited lifespan, with the average design life of the modules being about 25 years. However, some of the panels witness an early end of life cycle due to various factors. For instance, modules may be damaged during the transportation from the manufacturing facility to the installation site, during handling or during operations. Technical failures and human errors also contribute to panel degradation. Cell cracks, snail tracks in cystalline silicon modules, hot spots in thin-film modules and back contact degradation are some examples of failures in different PV technologies, as published in Review of Failures of Photovoltaic Modules by Marc Köntges, Institute for Solar Energy Research Hamelin.

In 2022, the Ministry of Environment Forest and Climate Change (MoEFCC) amended the E-Waste (Management) Rules to include solar cells and modules in the e-waste ambit. Undoubtedly electricity generated through solar PV panels, compared to coal-based power generation plants, is greener as it involves a lighter carbon footprint and lowered emissions. However, experts fear that solar energy could also pose problems in the future if worn-out and discarded panels are not disposed of scientifically. 

When these panels no longer suitable for use due to breakage or degradation, they must be either recycled or discarded. However, recycling solar panels by disassembling each layer is a challenging, highly energy-consuming and costly process. Solar waste includes both discarded panels and scrap generated during the manufacturing of solar cells and modules. Panels are discarded when they reach the end of their functional life or are damaged during transportation, handling or installation.

As these photovoltaic panels reach their end of lives, some portions of the frame are extracted and sold as scrap; junctions and cables are recycled according to e-waste guidelines; the glass laminate is partly recycled; and the rest is disposed of as general waste. Silicon and silver can be extracted by burning the module in cement furnaces. According to a 2021 EU-India Technical Cooperation Project: Energy report, approximately 50 per cent of total materials can be recovered through such waste management and recycling processes.

India’s challenge is the growing informal handling of photovoltaic waste. About 20 per cent of the waste is recovered in general, while the rest is treated informally. Due to limited demand for used panels, most decommissioned solar panels are sent to landfills. The untreated panels in landfills causes acidification, releasing of toxic metals (such as lead and cadmium) into the soil and contamination of the local water. Eventually, when these panels are incinerated, the encapsulant releases sulphur dioxide, hydrogen fluoride and hydrogen cyanide into the atmosphere, reported The Hindu.

Read More: Solar Energy Ecosystem Set To Get More Robust

Strategies for Improving the Circular Economy in Solar PV

India’s current installed solar capacity of 66.7 GW capacity (as of FY23) has already generated about 100 kilotonnes of waste, a figure expected to rise to 340 kilotonnes by 2030 according to a study released by the Council on Energy, Environment and Water (CEEW) and the Ministry of New and Renewable Energy (MNRE) in March 2024.

The study further states that around 67 per cent of this waste will come from five states, Rajasthan, Gujarat, Karnataka, Andhra Pradesh and Tamil Nadu. This waste will include critical minerals such as silicon, silver, cadmium, and tellurium, with the study estimating about 10 kilotonnes of silicon, 12-18 tonnes of silver, and 16 tonnes of cadmium and tellurium the majority of which are critical minerals for India, revealed the study.

The study also emphasised on several strategies to improve the circular economy in the solar industry. It underscored that the  Ministry of New And Renewable Energy should maintain and periodically update a database of the installed solar capacity (including details such as module technology, manufacturer, commissioning date, etc.) for accurate mapping of plausible waste generation centres.

While discussing the promotion of safe and efficient processing of stored waste, the report further suggested that the Ministry of Environment, Forest and Climate Change (MoEFCC) of India issues guidelines for collecting and storing solar waste. The study also encouraged solar cell and module producers to ensure that waste collection and storage centers comply with the E-Waste Management Rules 2022.

Solar waste contains not only valuable materials like silver and silicon but also toxic substances like lead and cadmium, which pose significant environmental and health risks. By recovering valuable materials like silicon, silver, and cadmium through recycling, India can reduce its dependency on imports and enhance its mineral security while simultaneously addressing environmental concerns.