Solar firms team up on recycling to beat regulators

By Eva Kuehnen

FRANKFURT (Reuters) - Some of the world's top solar power companies have teamed up to launch the first large-scale recycling system for solar panels in Europe, to stay one step ahead of regulators by showing an industry-led scheme can work.

The goal is to set up a voluntary take-back system for solar modules by the end of 2008, the group handling the project said.

"We will be the first in Europe to establish such a system. And I could well imagine that it will become a model for other countries," said PV Cycle President Karsten Wambach, who also heads SolarWorld's Solar Material division.

The new PV Cycle association embraces about 17 solar companies including Q-Cells, SolarWorld, Sharp, Kyocera and First Solar, as well as German solar industry association BSW and the European Photovoltaic Industry Association (EPIA).

Recycling amounts are relatively low compared with annual installed capacity as the solar boom has taken off in the past four years while modules last up to 25. Mostly, only flawed or damaged modules have been recycled.

But PV Cycle expects the amount of solar module waste to surge to 223 megawatt peak (MWp), or roughly 16,000 tonnes, by 2015 in Europe from 31 MWp, or some 2,000 tonnes, last year.

EPIA and Greenpeace data show 0.05 percent of global electricity consumption derived from photovoltaic in 2006 and -- based on continued political commitment at a global level -- the share is expected to soar to about 10 percent by 2030.

By acting now, the industry association hopes to avoid seeing unfavorable, costly European regulation imposed later.