The current industrial standard photovoltaic (PV) modules are dominated by crystalline-silicon (c-Si) PV technology, which cannot be easily recycled. This has generated worldwide concerns regarding the scarcity of critical raw materials and large waste streams of PV modules in the coming years. To overcome this problem, a lot of ongoing research focuses on upscaling the recycling process of present c-Si module designs by chemical, thermal and mechanical processes. Alternative research focuses on the development of new PV modules with enhanced circularity by design. In this work, we propose a new circular PV module design based on liquid-encapsulation technology in which silicon solar cells are encapsulated with a suitable liquid and an edge sealant instead of a polymer sheet. Our optical studies show that the selected liquids exhibit similar optical performance to ethylene vinyl acetate (EVA) due to their comparable refractive indices. We fabricate one-cell prototypes and observe comparable efficiency of liquid-encapsulated and EVA-encapsulated modules, signifying recyclable module design without an additional efficiency loss. To validate the module performance, we also simulate the optical performance of modules with different encapsulation materials. Furthermore, the new modules retained more than 95% of their efficiency after inducing accelerated ageing through damp heat, thermal cycling and humidity freeze tests, indicating the liquids as an excellent encapsulant material for PV. In the end, we disassemble the liquid-filled PV module and show the recovered components, which can directly be reused in new products. Therefore, this modular design bypasses the recycling process. Even more promising, the liquid encapsulation can improve the stability of perovskite/c-Si tandem solar cells due to the moisture barrier, which will be studied in the future. Adding further possibilities, in principle, with additional engineering, the liquid encapsulation could be used in a heat loop to turn the PV module into a photovoltaic-thermal (PV-T) module, thereby boosting the efficiency potential beyond that of traditional PV concept.