Solar project developer enters novel “precycling” agreement

Engie structured a power purchase agreement that includes a recycling plan with Solarcycle when the project reaches end-of-life.

Engie North America announced it has entered a novel “precycling” program with Solarcycle to incorporate solar panel and project component recycling into initial agreements. 

The precycling provision implements a recycling plan into power purchase agreements for four projects that together represent 375 MW of capacity or roughly one million solar panels. The projects are located in the U.S. Midwest. 

Solarcycle estimates the agreement will divert 48 million pounds of material from landfills and avoid and about 33,000 tons of carbon emissions. The company said construction waste and system components will also be recycling “to the maximum degree possible.” 

“ENGIE’s precycling provision sets a new precedent for the utility-scale solar industry by proving that circular economy principles can be achieved without complex regulatory intervention and in a way that doesn’t require an up-front payment,” said Jesse Simons, co-founder and chief commercial officer, Solarcycle. 

The Midwest solar projects are expected to be completed over the next couple of years, adding to the 12 GW of solar, wind and battery energy storage operated by Engie in North America. 

According to the National Renewable Energy Laboratory, recycling solar panels is significantly more costly than throwing them out in a landfill. While some businesses will take a proactive approach like Engie, many will react to market signals, suggesting that regulatory requirements for establishing end-of-life plans for solar panels early in the project cycle may be needed. 

Without changes to the current structure of solar panel retirements, the world could witness some 78 million tons of solar trash disposed in landfills and other waste facilities by 2050, according to a 2021 study by the International Renewable Energy Agency (IRENA).  

IRENA predicts the U.S. will contribute 10 million metric tons of solar trash to that 2050 total. To put into context, the U.S. dumps almost 140 million tons of waste each year, according to the Environmental Protection Agency.  

“We are delighted to bring this innovative approach to life. Our collaboration with Solarcycle demonstrates the shared commitment we have to the long-term sustainability of our industry,” said Caroline Mead, senior vice president power marketing, Engie North America.