Cleaning after Solar Panels: A Circular Outlook

27 Pages Posted: 8 Jun 2021

See all articles by Serasu Duran

Serasu Duran

University of Calgary - Haskayne School of Business

Atalay Atasu

INSEAD

Luk N. Van Wassenhove

INSEAD

Date Written: May 26, 2021

Abstract

The sharp reduction in costs of solar panel installations along with improvements in their energy conversion efficiency has driven a rapid growth in the adoption of this technology in the past decade. There is, however, a potential caveat to such rapid growth in adoption: existing installations may be retired earlier than their projected 30-year lifetime. We posit that the progress in technology, along with shrinking solar panel prices can drive users to replace their panels much sooner, leading to an unexpectedly large volume of solar panel waste soon. In the absence of financially viable recycling technologies and an efficient removal infrastructure for solar panels, it is not difficult to foresee substantial costs associated with the removal, transportation, storage, and treatment of such waste. It is also unclear who will bear the end-of-life costs of such solar waste. Along with shrinking useful lives, these end-of-life costs imply a significant jump in the levelized cost of solar energy, which can hinder its future adoption potential. We provide a calibrated projection of solar waste volumes and costs for the next couple of decades and draw parallels from our experience with the WEEE Directive to suggest policy recommendations.

Keywords: sustainable operations, renewable energy, end-of-life management, solar panels, circular economy, e-waste, WEEE Directive

Suggested Citation

Duran, Serasu and Atasu, Atalay and Van Wassenhove, Luk N., Cleaning after Solar Panels: A Circular Outlook (May 26, 2021). Available at SSRN: https://ssrn.com/abstract=3860571 or http://dx.doi.org/10.2139/ssrn.3860571

Serasu Duran (Contact Author)

University of Calgary - Haskayne School of Business ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada

Atalay Atasu

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

Luk N. Van Wassenhove

INSEAD ( email )

Boulevard de Constance
77 305 Fontainebleau Cedex
France
(33) (0)1 60 72 42 66 (Phone)
(33) (0)1 60 72 40 49 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
484
Abstract Views
2,724
rank
82,252
PlumX Metrics