4 Risks Involved with PV Disposal and Recycling

It’s expected that the total quantity of end-of-life PV panels will reach 9.57 million tonnes by 2050, and managing the disposal and recycling of those panels is already a growing concern in the solar industry, driven by the need to process those panels and ramp up the Solar eWaste industry. With increased panel efficiency and the financial benefit to repower and replace swaths of panels, the need to derisk disposal and recycling efforts is evermore necessary. 

As panels are removed from installations for upgrades or due to damage, industry leaders face the challenge of addressing the environmental impact and also the legal, reputational, and civil litigation risks associated with improper disposal. 

Given the complex nature of PV waste, which can contain toxic metals like lead, tin, and cadmium, as well as valuable recoverable materials such as glass, aluminum, silicon, and copper, companies must adopt a proactive approach. 

We explore the four key risks involved with solar panel disposal and recycling, including (1) Legal risk, (2) Reputational risk to the generator, (3) Reputational risk to the original equipment manufacturer (OEM), and (4) Civil litigation risk due to product safety concerns. By addressing these issues, we aim to equip the solar industry with the best practices for handling PV waste responsibly and avoiding the pitfalls of improper management. We’ll focus on the rules and regulations surrounding solar module waste management, offering practical guidance to ensure compliance with federal laws such as the Resource Conservation and Recovery Act (RCRA). With the potential for significant penalties, including Superfund liabilities, mismanaging solar waste can have far-reaching legal and financial consequences for companies throughout the supply chain.

Risk #1 – What are the Legal Risks of Recycling Solar PV Modules? 

The legal risks associated with recycling solar PV modules are significant due to their classification as electronic waste and the hazardous materials they contain, such as lead, cadmium, and other toxic substances. Improper handling of these materials can result in substantial legal consequences under several U.S. federal regulations:

Solar panels can be classified as hazardous waste under RCRA if they contain toxic metals that exceed regulatory thresholds. Mismanagement of hazardous waste can lead to significant fines and legal actions, as the waste must be tracked from its creation to its final disposal (“cradle-to-grave”) to avoid contamination​. Companies must ensure proper testing and classification of solar modules to avoid misclassifying hazardous materials​.

If solar PV waste contaminates a site, companies may be liable for cleanup under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly known as the “Superfund” law, under the concept of “Joint and Several Liability.” This liability can extend to manufacturers, installers, and those in the supply chain if solar modules are improperly disposed of in unregulated landfills or countries with inadequate waste management infrastructure.

This law holds responsible parties liable for the entire cost of site cleanup, even if the waste was disposed of years earlier​. You can learn more about the difference between RCRA and CERLA here. Superfund sites are located across the country, and millions of dollars are required by the Joint and Several contributors to clean up the site. Here are some Superfund Stories to get an idea of what these risks look like on the backend, which is several years and dollars in a commitment to right the wrong. 

Solar panels disposed of as hazardous waste are subject to stringent disposal requirements. Under RCRA and analogous state laws, improper disposal may result in contamination of land and water, leading to civil and criminal penalties​.

For companies operating globally, failing to comply with international directives like the Waste Electrical and Electronic Equipment (WEEE) Directive can result in penalties. The WEEE Directive mandates proper disposal and recycling of electronic waste in European countries, adding another layer of legal compliance for multinational companies​.

These legal risks provide a need for companies to develop processes for recycling and disposal, ensuring compliance with all applicable regulations to avoid fines, legal disputes, and reputational damage.

Risk #2 – What are the reputational risks to the generator of PV panel waste?

Reputational risks to the generator of photovoltaic (PV) panel waste arise when companies fail to manage their solar waste in compliance with legal and environmental standards. Generators of PV panel waste, such as solar installers, utility companies, and solar farm operators, can face harm to their reputation if they are found to be contributing to environmental damage or failing to properly handle hazardous materials.

When PV panels, which often contain toxic substances like lead, cadmium, and selenium, are not disposed of properly, they can leach harmful materials into the soil and water, contaminating ecosystems and affecting public health. If a company is traced back as the source of this waste, it can face public backlash and negative media attention, severely damaging its reputation. 

This can be particularly harmful to businesses positioned as leaders in the green or renewable energy sector, where environmental responsibility is paramount. Mismanagement of this waste can result in companies being labeled as contributors to hazardous waste pollution, leading to potential regulatory scrutiny and loss of trust from customers and stakeholders.

While we know renewable energy is a positive thing and the amount of waste is nowhere near the levels of coal ash managed in the country, the record will still stand that the industry must be better and do better in all aspects and equipment lifecycles. Public exposure of irresponsible disposal practices can lead to backlash from environmental groups, the oil industry, and the public​. 

If solar panel waste is exported to countries with less stringent environmental regulations, companies risk being associated with the illegal dumping of eWaste in developing nations. Reports have shown that some recyclers falsely market themselves as responsible but instead sell panels to secondary markets with insufficient waste management infrastructure​. This can result in global reputational damage, as companies are seen as exploiting loopholes to offload waste in regions with weaker protections, which has occurred in places like West Africa and Southeast Asia. 

#3 What are the reputational risks to the original equipment manufacturer (OEM)?

As manufacturers of solar modules, Original Equipment Manufacturers (OEMs) are often seen as stewards of environmental practices, and any missteps in the handling, disposal, or recycling of these products can have lasting reputational consequences. Waste determination is made by a sample or can be made from generator knowledge, typically the OEM.

OEMs that do not take active roles in ensuring the proper end-of-life management of their solar panels risk being viewed as environmentally irresponsible. In an industry rooted in sustainability, failing to recycle or dispose of PV panels responsibly undermines the OEM’s environmental credibility. This can lead to negative public perceptions, especially if their panels contribute to pollution or improper waste management practices​. 

Some recyclers may falsely claim to responsibly handle end-of-life panels but instead sell them to secondary markets in developing countries, where they contribute to growing eWaste problems​. This association can severely harm an OEM’s reputation in global markets, where environmental practices are increasingly scrutinized.

It’s imperative to have a transparent recycling partner that can document your panels from the moment they leave your facility until they become raw material again for a new product or process. 

#4 – What are the civil litigation risks due to product safety concerns? 

The civil litigation risks associated with product safety concerns in the recycling and disposal of PV panels are primarily tied to the potential for harm caused by hazardous materials in these modules, including lead, cadmium, and other toxic substances. Solar panels, if not properly managed at the end of their lifecycle, can pose significant safety hazards, which can lead to legal claims against various parties in the supply chain.

If a PV module ends up in a landfill or other inadequately managed disposal site, the materials can degrade and release toxins into the environment, potentially affecting nearby communities. Civil lawsuits could be filed by individuals or groups harmed by this contamination, targeting the manufacturers, installers, and others involved in the lifecycle of the product​.

OEMs and other stakeholders in the PV supply chain must ensure their products meet safety and disposal standards, including those set forth by RCRA and other hazardous waste regulations​. A failure to comply with these standards can result in negligence claims, especially if it leads to environmental damage or health risks. Plaintiffs in such cases may claim that the OEM or other responsible parties did not take adequate steps to prevent the release of toxic substances.

In cases where PV panels contribute to contamination of a site that becomes subject to a Superfund cleanup under CERCLA, OEMs and others in the supply chain may face legal action. CERCLA allows for civil suits to recover costs associated with the cleanup of hazardous waste sites. If solar panels are determined to have contributed to such contamination, parties responsible for the disposal of these panels could be held liable​. 

If solar panels are shown to have inherent safety risks—such as the potential for toxic leachates or electrical hazards—and these risks are not adequately addressed or mitigated, companies may face product liability claims. These claims could be based on arguments that the panels were defectively designed, manufactured, or failed to include adequate warnings about the risks involved. Such lawsuits could target manufacturers, distributors, and installers.