Innovating for a circular economy: the future of solar energy and sustainability

According to The International Energy Agency, solar is set to become the largest renewable energy source by 2029. With installations growing exponentially, over time so will the number of photovoltaic (PV) modules coming to the end of useful life. Without proactive measures, this could lead to a mounting environmental challenge of how to recycle or repurpose the technology at the end of their operational lives.

This was the topic discussed at a recent roundtable hosted by energy, sustainability and policy experts from The University of Cambridge Institute for Sustainability Leadership (CISL), IfM Engage and E.ON Group Innovation following publication of the research report Circular Solar: The Opportunities For Increased Circularity In The Solar PV Industry

In today’s world, where environmental challenges and the transition to renewable energy are at the forefront, innovation is the key to ensuring that our planet thrives while meeting the demands of an ever-growing population. One of the most promising approaches to tackling these issues is the concept of a circular economy — a system aimed at maximising the use of materials, minimising waste, and promoting sustainability. In the context of the energy industry, particularly solar energy, this shift is becoming more critical than ever.

The role of circular economy in the energy transition

Munib Amin, Managing Director at E.ON Group Innovation, emphasises how vital the circular economy is for the energy sector. With the rapid expansion of renewable energy sources, there has been a significant shift in the industry’s resource needs.

Instead of our previous reliance on fuel, there is now an increased demand for materials and land. As Dr Amin puts it: “The right question to ask would be how can we make the best use of the materials that are available and the resources that we can use?"

The circular economy plays a pivotal role in ensuring that materials are utilised efficiently, contributing to a sustainable energy future. PV panels, a critical component of solar energy, are a prime example of where circular economy principles can make a significant impact.

Diana Khripko from the University of Cambridge, and one of the report’s authors, highlights the issue that, at the end of their lifespan, many PV panels end up in landfills. This leads to a growing waste problem, which could worsen in a continued ‘business as usual’ approach.

The solution lies in making PV panels recyclable and finding ways to extend their life cycle through reuse, repair, and remanufacture.

Erik van Berkel, a strategy consultant at Dutch energy supplier Essent, echoes this idea, noting recyclability is not often top of mind when people buy solar panels. However, he says, when consumers understand the benefits — such as having recyclable solar panels that use fewer harmful materials — they become enthusiastic about the idea. The Essent study revealed 85% of customers were intrigued by the concept, especially when the price difference was reasonable. As a result, Essent is collaborating with a small manufacturer to pilot these innovative solutions.

Policy and strategic shifts for a circular future

For the circular economy to thrive, robust policies and strategies are essential. Sanna Markkanen from the Cambridge Institute for Sustainability Leadership (CISL) points out that the European Union’s missions approach, which focuses on reuse, repair, remanufacture, and recycling, is crucial for keeping materials in use for as long as possible. This not only reduces waste but also ensures that the value of materials is retained.

However, Pamela Ong from E.ON Group Innovation highlights a significant challenge: the availability of cheap and efficient new PV panels from countries like China, which often discourages consumers from opting for circular options. To overcome this, policymakers must create clear guidelines that encourage circularity and incentivise businesses to adopt sustainable practices. In this regard, Europe’s push for sustainable product regulations, which include energy efficiency and circularity, is an important step forward.

A path to energy security and resilience

Martin Porter, Executive Chair at CISL Brussels, stresses the transition to a circular economy is not only beneficial for the environment but also crucial for energy security. By focusing on circularity in energy production, particularly solar energy, Europe can reduce its reliance on external suppliers and increase its resilience. This shift is not just about solving climate change; it’s about creating a more secure and self-sufficient energy system for the future.

Peter Handley, Senior Associate at CISL and himself a former EU Commission official, also underscores the importance of embracing circularity now, rather than waiting until 2045 or 2050. He says as the solar energy market expands, it is essential to design products with recycling in mind from the outset. This forward-thinking approach will help ensure that we maximise the value of the materials used in solar panels and reduce the environmental footprint.

As the circular economy becomes an increasingly essential part of our sustainability efforts, the solar energy sector is poised to lead the way.

Innovations in recyclable solar panels, policy shifts to support circularity, and a focus on energy resilience will all contribute to a more sustainable future.

However, as Nadine Braun from E.ON’s environmental sustainability team advises, it is time to “stop talking and start acting”.