Circular business models and supporting policies for reusing of photovoltaic modules in the EU

Abstract

Renewable solar energy is essential to achieve the Paris climate agreement. The EU faces two main challenges. First, the increased photovoltaic (PV) capacity installed today will result in enormous amounts of waste at the end of life of PV modules. Second, the EU is currently dependent on the imports of PV modules, manufactured outside the EU using fossil fuel sources and critical raw materials. Circular strategies (i.e., reduce, reuse, recycle) may help address these challenges. Here, we focus on reuse, which according to the EU waste framework directive should be prioritized over recycling. Based on a review of academic and industry literature and exploratory interviews with industry stakeholders and policymakers, we shed light on the reuse business models of PV modules, and the EU policy context. Four main reuse business model archetypes were determined: (1) opportunity driven diversifier; (2) socially driven orchestrator, (3) turnover oriented trader, and (4)state appointed collector. All reuse business models are shaped by the EU policy landscape. This landscape includes the upcoming Ecodesign requirements for new PV modules placed on the market; the directive on Waste from Electrical and Electronic Equipment (WEEE) determining end of life requirements; and in between a regulatory gap related to enforcing potential reuse activities. The identified circular business model archetypes and EU policies are finally discussed to inform potential future research, business, and policy actions to make the European PV industry more circular and resilient.