Markets Germany Magazine 3/24 | Solar Recycling
Closing the Solar Circle
Germany is setting new records in photovoltaic R&D. But solar-power units don’t last forever. So, with the country pushing ahead in its transition to clean energy and a truly circular economy, demand is set to grow incrementally for solutions to recycle obsolete and outmoded PV hardware.
Dec 03, 2024
Anyone who has traveled through Germany recently will have noticed a change to its rural and urban landscapes. “If you drive through the country, every 200 meters on average you will see PV installations on roofs, on free spaces,” says Markus Krausewitz, site director of ROSI, a French company specializing in the recycling of solar power units, which has recently expanded to Europe’s biggest economy. “It’s like a tsunami ahead of us.”
Germany has long been one of the world’s biggest proponents of solar energy technologies, and the country now generates more power from solar modules than any other nation in Europe. “Right now, there are about four million solar power systems installed in Germany, with a total installed capacity of around 80 gigawatts,” explains Carsten Körnig, managing director of the German Solar Association.
The expansion of solar power in Europe has created new demand. The first major wave of PV installations in Germany began in 2010. Given that most modules function effectively for around 20–30 years, the issue of what to do with obsolete units is becoming increasingly urgent. Photovoltaic panels contain valuable materials like silicon, silver, copper and aluminum, and developing methods to recycle those components is critical to making solar power a circular industry and a truly clean energy source.
“By 2030, between 400,000 and one million metric tons of modules will have to be disposed of and recycled per year in Germany,” says Körnig. “By 2050 it will be 4.3 million tons. The ongoing solar boom will lead to an increased demand for recycling solutions.”
This article was published in issue 3-2024 of the Markets Germany Magazine. Read more articles of this issue here
Opportunities for innovators
Germany needs practical recycling solutions and new approaches. One company pushing the boundaries of technology is FLAXRES, a Dresden-based start-up. They have pioneered a system that uses high-intensity light pulses to break modules down to their raw materials, without the need for chemicals. The potential for this technology has been recognized by Korean carmaker Hyundai, which bought an eight percent share in FLAXRES in a multi-million euro deal in early 2024.
Local authorities are also doing their bit to encourage outside investment. Earlier this year, ROSI—whose company name is an acronym for Return of Silicon—announced plans to set up a new facility in the town of Elsnig, in the eastern German regional state of Saxony. The firm has developed processes that use thermal and soft chemistry to recover valuable components from solar modules.
The Bottom Line
The ongoing expansion of solar power in Germany, combined with the fact that many PV installations will reach the end of their useful lives in the near future, has given birth to a very promising new sector for solar hardware recycling.
“ROSI’s focus is on silicon,” says Krausewitz, “for which we have almost no natural resources in Europe at the moment.” In 2023, China was responsible for more than two-thirds of global silicon production. Its output was 60 times higher than that of the top EU producer, France. “We would like to step into a bright, green future, but without silicon, without silver, without all the high-value materials, it is not possible,” Krausewitz adds. “So the idea was to use the existing material and bring the materials in a very pure form back to the circle again.”
Germany’s early adoption of solar power makes it an obvious place for companies like ROSI to expand from. Put simply, they are going where the business takes them. “If you have a look at Europe, in the year 2035, 50 percent of modules that will need to be recycled are located in Germany,” Krausewitz explains. “We need to minimize logistics. So Germany is a natural choice.”
A bright future
ROSI’s strategy makes even more economic sense considering the expansion of solar power in Germany since the initial burst of installations. In 2012, Germany’s installed solar capacity was just over 34 gigawatts (GW). By 2023 that had more than doubled to over 81 GW.
And that growth is only going to accelerate. The German national government has set a goal of tripling the current rate of new PV installations by 2026. It wants to see the country generating 215 GW of solar electricity before the end of the decade.
Relocating to a new country is always a major undertaking. But help is at hand for companies who want to follow in ROSI’s footsteps and set up shop in Germany. Germany Trade & Invest advised the company on its expansion and made sure it was hooked up with the partners it needed on the ground.
“In Saxony, from the very beginning, we enjoyed great support from the region’s economic development agency, the district administrator, and also the authorities,” says Krausewitz. “With all the support, the infrastructure, and also the motivated people we got in touch with, Germany is a really good place to be.”
That winning combination means the sun will shine in Germany on companies investing in photovoltaic recycling technologies. Krausewitz is encouraging more firms to “make hay,” as the saying goes. “I recommend every company to look at the mid- and long-term opportunities in Germany,” he advises.
A snapshot of the solar recycling market
Three questions to Flérida Regueira-Cortizo, senior manager in Energy, Building and Environmental Technologies at Germany Trade & Invest (GTAI).
Why are photovoltaic recycling technologies important for Germany?
Germany has taken a pioneering role in the transition to clean energy. With a growing number of solar modules reaching the end of their lifespan, it now faces the challenge of recycling these modules. Progress in these technologies could help us regain valuable materials and support the circular economy.
What can Germany offer companies looking to expand in this sector?
Germany has a number of funding programs that support innovations in this field. The government and regional agencies offer comprehensive support in site selection, funding applications and integration into local networks. GTAI experts support international companies at every stage, from planning through to locating in Germany.
What other factors make Germany an attractive location?
Germany offers an ideal environment for photovoltaic recycling companies, thanks to its stable economy, developed infrastructure and commitment to renewable energy. Companies can profit from a well-educated workforce, a strong industrial base and a first-rate research environment, all of which facilitate the development of new technologies. Last, but not least, Germany remains an open-minded country and economy.
