Solar panel recycling sees new facilities and investments in 2026

Companies are expanding solar panel recycling capacity as early installations reach end of life. Recent openings and funding signal growing industry momentum in the United States and Europe. Policy changes are also underway to support higher recovery rates.

SolarCycle opened a high-throughput facility in Georgia this year that recovers about 96 percent of a panel’s value. The plant aims to scale toward processing up to 5 gigawatts of panels annually. We Recycle Solar operates a utility-scale plant in Yuma, Arizona, and plans to quadruple capacity by 2028.

Rosi, a French company, recently raised more than $20 million to build a 10,000-ton-per-year facility in Spain. It uses thermal and chemical processes to recover high-purity silicon and silver. First Solar continues its closed-loop recycling program that has operated since 2005.

The U.S. Environmental Protection Agency plans to propose rules adding retired solar panels to its universal waste category in February 2026, with a final rule expected in August 2027. Several states including Washington and California already have their own programs in place.

Recycling costs have fallen 42 percent over the past three years according to industry analysis. The United States currently recycles about 10 percent of decommissioned panels, compared with 85 percent in the European Union.

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Prime Minister Abiy Ahmed inaugurates solar energy factories generating 11.3 GW in Hawassa Industrial Park.
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Prime minister Abiy inaugurates energy factories in Hawassa Industrial Park

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Prime Minister Abiy Ahmed (Dr.) inaugurated factories with significant capacity for the energy sector in Hawassa Industrial Park on Miyazya 17, 2018 EC (April 25, 2026). Three solar factories and a supporting gas factory were launched. Together, the solar plants will generate over 11.3 gigawatts of clean power annually.

A surge in demand for solar installations in the Philippines has overwhelmed the local industry, leading installers to reject clients or impose longer waits due to low supply from China. The rush stems from fears of fuel price spikes after the US and Israel's attack on Iran closed the Strait of Hormuz. Installers report clients now eagerly seeking solar for energy security.

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The PM Surya Ghar: Muft Bijli Yojana has installed rooftop solar systems in 40 lakh households so far. The target of 75 lakh households by year-end faces potential delays due to shortages of locally made panels.

In the first quarter of 2026, two gigawatt hours of new battery storage capacity went into operation. The stock of stationary accumulators grew to about 28 gigawatt hours across 2.5 million units. The German Solar Industry Association warns against disadvantaging them in power plant auctions.

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California reached a 38.5 percent carpet recycling rate in 2024 through its extended producer responsibility program. New York will become the second state with such a mandate when its law takes effect in July 2026. The rest of the country continues to send most discarded carpet to landfills.

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