As solar energy capacity increases, so will the eventual need to decommission photovoltaic (PV) projects. Although this will become a bigger issue in the next decade or two, some solar panels are being decommissioned today. Perhaps the solar array had defective solar panels, the manufacturer no longer exists, or the output of an older project is unimpressive compared to the high-efficiency solar panels and equipment readily available today.
Although few companies specialize in solar panel decommissioning, the process is relatively straightforward and mirrors the installation process in reverse. Instead of procuring new PV panels and equipment, the goal is to repurpose or recycle the existing ones. As the clean energy industry grows, so does the demand for solar decommissioning services.
It's essential to consider solar decommissioning cost estimates, as they can vary based on the complexity of the system, location, and recycling methods. This emerging market offers significant business opportunities as more solar systems reach the end of their operational life.
What is Solar Panel Decommissioning?
Solar panel decommissioning involves removing PV panels and associated components from a site and restoring the area to its original state. This process includes dismantling equipment such as racking systems, wiring, inverters, transformers, and foundations, many of which can be repurposed or recycled. Site restoration may involve de-compacting soils, backfilling excavations, removing access roads, revegetation, or returning the land for agricultural use.
Decommissioning large-scale commercial solar farms involves removing all the PV panels and components and restoring the project site. Solar equipment includes a racking system, wiring, solar inverters, transformers, conduit, fencing, and foundations, which can often be repurposed or recycled. Restoring the site can include de-compacting soils, backfilling excavations, removing access roads, revegetation, or returning the land for agricultural use.
As of 2025, several updates have been made to laws and regulations governing solar panel decommissioning:
Federal Solar Panel Decomissioning Policies
The U.S. does not have specific federal policies directly governing solar panel recycling and decommissioning. However, the EPA has developed regulations for managing solar waste as part of its Universal Waste regulations. These efforts aim to improve the recycling and disposal of renewable energy wastes, including solar panels. The goal is to provide better waste management practices and promote recycling through state-level policies, while encouraging responsible disposal methods.
State-Level Solar Panel Decomissioning Policies
Some states have policies that impact solar decommissioning. Some of these states include:
Washington: Requires manufacturers to offer recycling options for solar panels sold after July 1, 2017. This ensures environmentally responsible disposal and recycling.
California: Implements stringent regulations for the recycling of solar panels under its hazardous waste management rules to ensure proper disposal.
Nevada: Involves specific requirements for the recycling and disposal of solar panels as part of the state’s waste management policies.
Maine: As of October 18, 2021, requires developers of solar power projects occupying 3 or more acres to submit an approved decommissioning plan and financial assurance to cover the cost of decommissioning.
Georgia: Starting in January 2025, mandates solar decommissioning requirements for companies leasing property for solar farms, including financial assurance every five years.
The Process of Decommissioning Solar Panels
Solar contractors begin by creating a decommissioning plan or referring to an existing plan, if available, for dismantling the equipment and returning the land to its original state. Before starting this process, it’s important to conduct research to determine if local ordinances or solar decommissioning laws exist in your state so you know what you are legally required to do. In addition, it can be helpful to determine how the landowner wants to use the land in the future.
It’s critical to identify where the materials will go after dismantling the solar farm and if reusing the solar panels and other equipment is an option. Some companies specialize in removing, transporting, and refurbishing solar panels. Many solar photovoltaic plant owners value sustainability during the decommissioning process, so they repurpose solar panels and equipment whenever feasible and minimize waste going to landfills.
Decommissioning solar panels requires similar safety equipment as the installation process. To promote worker safety, turning off the solar system is critical. Likewise, equipment such as skid-steer loaders and excavators are needed to remove and transport the dismantled solar panels, racking, fencing, foundations, and equipment and perform site work.
What To Do With Decommissioned Solar Panel System Components?
When you create a solar panel decommissioning plan, identify what you will do with the solar panels, inverters, racking system, and other components.
Repurposing Decommissioned Solar Panels and Equipment
Several companies are capitalizing on end-of-life management by refurbishing and reselling used solar panels and components. While older panels may produce less electricity, they can still contribute to clean energy generation, making them viable for resale.
Companies like FabTech Services and We Recycle Solar specialize in refurbishing used panels, and other installers either sell modules to clients or donate them to charities. Selling locally helps minimize shipping costs and reduces greenhouse gas emissions, contributing to sustainable practices.
Recycling PV Panel And Components
Not all modules are suitable for reuse, and other disposal options are necessary. Although many of the materials in solar modules are recyclable, they can be quite expensive because of the labor involved in dismantling them. However, solar panel recycling is more sustainable than disposing of them in landfills, and recycling facilities help conserve raw materials.
The SEIA launched the National PV Recycling Program and has designated Preferred Recycling Partners that meet the SEIA’s standards. Solar inverters are commonly recycled with electronic waste and racking systems with similar metal scrap. As more solar installations reach the end of their useful lives, the ease of recycling component parts will hopefully equally improve.
Solar Decommissioning Cost Estimates
The costs of decommissioning solar farms vary depending on their size, location, and complexity. The project owner, not the local community or landowner, is responsible for covering the decommissioning expenses.
Some of the most labor-intensive aspects of removing the solar equipment include dismantling and removing the racking system and removing ground screws and power poles. If you’re creating a decommissioning plan with solar decommissioning cost estimates for the future, also factor in inflation.
The solar decommissioning cost estimates for a 2-megawatt solar farm in Massachusetts include the costs of dismantling a project, but not equipment disposal costs, which vary depending on if there is a secondary market for repurposed components. The costs outlined below are estimates; actual decommissioning costs may vary.
Decommissioning Tasks | Estimated Costs for 2 MW Solar Farm |
Remove Rack Wiring | $2,450 |
Remove PV Panels | $2,450 |
Dismantle Racking System | $12,350 |
Remove Electrical Equipment | $1,850 |
Break Up and Remove Pads or Ballasts | $1,500 |
Remove Racking System | $7,800 |
Remove Cables | $6,500 |
Remove Ground Screws and Power Poles | $13,850 |
Remove Fencing | $4,950 |
Land Grading | $4,000 |
Seed Disturbed Areas | $250 |
Truck to Recycling Center | $2,250 |
Total | $60,200 |
What is the Process for Solar Farm Decommissioning
Solar panel decommissioning for a solar farm involves several important steps. It typically begins with a comprehensive site assessment, including a review of permits, contracts, and environmental considerations. The specific process may vary depending on the size and complexity of the solar farm and local regulations and requirements.
Here are some key steps commonly involved in decommissioning a solar power plant:
Planning and Preparation: This phase involves developing a decommissioning plan that outlines the scope, timeline, and procedures for dismantling and removing the solar panels and related infrastructure. It also includes obtaining any required permits or approvals.
Safety and Environmental Considerations: Safety measures are implemented to protect workers and the environment before decommissioning. These may include the removal and proper disposal of hazardous materials such as batteries and other electronic components, as well as the implementation of erosion control and water management strategies.
Equipment & Solar Panel Removal: The solar panels, inverters, and other equipment are safely disassembled and removed from the site. In some cases, components may be recycled or repurposed.
PV Power Plant Site Restoration: The site needs to be properly restored after removing the equipment. This may involve activities such as soil remediation, vegetation restoration, and erosion control measures.
Financial Responsibility: Solar farm owners often set aside funds to cover the costs of decommissioning a solar farm. These funds ensure that the decommissioning process can be properly executed and that the site can be restored without burdening taxpayers or the local community.
FAQs About Decommissioning Solar Panels
Gain answers to common questions about dismantling solar arrays.
What happens to old solar panels?
Old solar panels can be recycled, repurposed, or disposed of in landfills. Recycling is the most eco-friendly option, recovering valuable materials like silicon and glass. Repurposing involves using panels in less demanding applications. Improper disposal harms the environment, so proper recycling or repurposing is essential. Solar panel decommissioning also involves safely removing panels and restoring the site, ensuring responsible handling of old equipment.
What is a decommissioning bond for a solar project?
A decommissioning bond for solar projects is a financial guarantee ensuring that the solar developer covers the costs of dismantling and removing solar installations at the end of their life. This bond helps with solar decommissioning cost estimates, ensuring the land is restored and preventing environmental risks from obsolete equipment. It protects landowners and communities from abandonment and ensures responsible end-of-life management for solar projects.
Can solar panels go to landfills?
Unfortunately, if decommissioned solar panels are not adequately disposed of, they can leach chemicals into groundwater, polluting it. Also, solar PV panels contain many raw materials, including copper, steel, aluminum, zinc, and silver, that will be wasted if disposed of in landfills. Therefore, proper handling and recycling are essential to ensure that the solar PV industry reduces the amount of waste they add to landfills.
Decommissioning Solar Panel Projects Is Becoming Increasingly Common
Although solar power systems are designed to last for decades, some owners are choosing to decommission solar panel projects earlier than expected, often in favor of upgrading to newer models or for various other reasons. This trend is particularly notable as advancements in solar technology continue to emerge, leading some users to seek more efficient and effective solutions. Given that the solar industry is still relatively young, the processes and regulations surrounding solar panel decommissioning are also evolving.
As decommissioned solar projects increase, the secondary market for solar panels and equipment is rapidly changing, presenting unique challenges and opportunities. Many companies now recognize the potential for profit in the recycling, resale, or refurbishment of decommissioned solar panels.
In fact, solar panel decommissioning services can create lucrative business opportunities for solar companies looking to expand their offerings beyond installation to include end-of-life management and responsible disposal. As the need for sustainable practices becomes more pressing, the demand for expertise in solar panel decommissioning is expected to grow, positioning those companies with the right capabilities at the forefront of this emerging market.
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