The energy transition is often associated with the expansion of new photovoltaic systems. However, a less widely discussed development is becoming increasingly significant: the first major generation of solar installations is reaching the end of its technical and economic lifespan.
Between 2005 and 2012, millions of photovoltaic modules were installed in Germany and other European countries. Many of these systems are still in operation today, but the technology has advanced considerably over the past 15 years. This raises a new question for manufacturers, installers, wholesalers and operators: What will happen to the existing systems when replacement becomes economically viable?
The next phase of the energy transition is called refurbishment
Refurbishment refers to the reconditioning, cleaning, testing, and repair of existing photovoltaic systems with the aim of restoring the product to a functional and saleable condition. Of particular interest here is the refurbishment of old PV modules, which are replaced by modern high-performance modules.
Whilst solar modules from the early 2010s often achieved outputs of around 200 to 250 watts peak (Wp) per module, modern modules today often range from 430 to 650 Wp. This means that significantly more power can be installed on the same roof area – in many cases, the system capacity can be almost doubled.
In addition, operators benefit from technological advances in inverters and energy management systems. Modern systems offer features such as smart monitoring, the integration of battery storage, power optimisers and significantly improved yield management.
For many operators, the question is therefore no longer whether a plant is still functioning, but whether it is still realizing its full economic potential.
Replacement brings a new challenge
Many companies still focus today on the planning, sale, and installation of new plants. However, with the rise of refurbishment, another area is emerging that will become increasingly important in the coming years: the management of old plants.
This is because every legacy module must be dismantled, transported, assessed, and sent for appropriate recycling. The possible options vary considerably:
- Reuse of still functional modules
- Resale on secondary markets
- Extraction of spare parts
- Recycling of defective modules
- Documentation and record-keeping
This means that refurbishment is not only a technical task but a logistical and regulatory one as well.
From a cost factor to a business model
At the same time, this development opens new economic opportunities.
Trade-in programs have long been established in other sectors. Smartphones, tools, consumer electronics, and batteries are already being systematically taken back, assessed, and resold.
A similar approach could also gain significance in the solar industry in future.
A possible scenario:
- A customer decides to have their system refurbished.
- The existing modules are taken back.
- They are then sorted according to their reusability and repaired where necessary.
- Functioning modules are tested and reconditioned.
- They can then be resold.
- Components that are no longer usable are sent for recycling.
- At the same time, a new, powerful system is installed.
This creates additional sources of revenue throughout the entire life cycle of a system. Manufacturers, installers and wholesalers can evolve from being mere product suppliers to providers of comprehensive life-cycle services.
Why the circular economy is becoming increasingly important for the solar industry
In addition to economic considerations, the circular economy is also coming increasingly into focus.
According to a joint study by the International Renewable Energy Agency (IRENA) and the IEA Photovoltaic Power Systems Program (IEA-PVPS), the volume of end-of-life PV modules is set to increase significantly in the coming decades. By 2050, up to 78 million tons of PV waste could be generated worldwide. At the same time, these modules contain valuable raw materials; the reuse of which offers considerable economic potential.
The challenge therefore lies not merely in disposing of end-of-life modules but in keeping them in the economic cycle for as long as possible – through reuse, remarketing, and recycling.
For companies, this means that take-back and recovery schemes will be relevant from a regulatory perspective and an integral part of sustainable business models.
The crucial question for the industry
Many solar companies already have thousands of customers with systems that were installed more than ten years ago. The key question is therefore:
How many of these customers will be considering refurbishment in the coming years and is there already a plan in place for the take-back, reverse logistics, remarketing, and recycling of old modules?
Companies that answer this question early on could secure a decisive competitive advantage. This is because the next phase of growth in the solar industry will not be driven solely by new installations, but increasingly by the professional management of existing systems throughout their entire lifecycle.
Are you ready for the refurbishment trend?
We help companies in the solar industry to develop sustainable and economically viable lifecycle strategies – from take-back to recycling.
Talk to us about your refurbishment and take-back strategy.