Welcome back, climate leaders.

In today’s edition:

• ☀️ Solar panels have limited recycling options.

• 🚗 Rivian beats sales expectations

• ⚡️How much does solar factor into utility-scale electricity in 2023?

Read time: 5 minutes

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BIG STORY

Solar’s looming recycling problem

Driving the news: The solar energy industry is booming, but with its growth comes the challenge of managing waste, particularly from solar panels.

• The International Renewable Energy Agency (IRENA) projects that global installed PV capacity could reach a staggering 4,500GW by 2050.

• Countries like China, India, the US, Japan, and Germany are leading the charge, but this rapid expansion means an inevitable increase in decommissioned panels.

What's happening: The majority of PV panel waste currently ends up in landfills. Right now, this is not much. But when the 25-30 year life of solar panels ends, it is typically more cost-effective to replace.

• While the EU has adopted PV-specific waste management laws, countries like the US and Japan have only included solar panel materials in their general waste regulations.

• In 2020, solar panels accounted for about 40% of all new electricity generation capacity in the US. However, only 10% of solar panels in the US are recycled, and there's no federal mandate to do so.

Why it matters: Solar panels are largely recyclable. About 75% of a solar panel's weight is glass, which is relatively easy to recycle.

• Other components, such as the aluminum frame, copper wire, and plastic junction box, can also be recycled.

• The EPA estimates that the value of recoverable raw materials from solar panel waste will be around $450m by 2030.

• Companies like SolarCycle are stepping up, offering recycling services and partnering with major renewable developers like Ørsted to recover materials from expired panels.

What's next: The push for renewable energy and the subsequent waste challenge calls for more awareness and incentives around reusing and recycling solar panels.

• Some US states, including California, Hawaii, New Jersey, North Carolina, and Washington, have already enacted laws addressing solar panel waste.

• As the transition to renewable energy continues, it's likely that the federal government will introduce more stringent measures to enhance solar recycling.

🌶 Hot take: With a 30-year lifespan, the lack of recycling infrastructure for solar panels isn’t that urgent. As the solar industry matures and profit margins stabilize, solar manufacturers will likely invest in a more circular supply chain that repurposes raw materials of end-of-life products.

HOT TOPICS

1. 💰 Private equity: The Blackstone Green Private Credit Fund III has raised a record-breaking $7.1 billion for energy transition investments. Blackstone aims to invest $100 billion in energy transition and climate change projects in the next ten years.

2. 🚗 EV Sales: Rivian surpasses Q2 revenue expectations, raises 2023 EV production guidance. Q2 revenue of $1.12B, triple the previous year, driven by 12,640 vehicle deliveries. Losses narrowed and supply chain strengthened. Improved cost efficiency fuels focus on profitability.

3. 💨 Hydrogen: California Governor Gavin Newsom has directed his Office of Business and Economic Development to formulate a comprehensive strategy to develop the state's hydrogen market, as part of its efforts to meet climate goals and compete for federal funding in the $8 billion hydrogen program.

4. 🇲🇽 Mexico Solar: Bright raises $32M to accelerate rooftop solar adoption in Mexico. The startup offers a software and finance platform for homeowners and businesses, facilitating financing options and access to solar installers.

5. 🌾 Food supply: Extreme weather events pose a growing threat to food supply, potentially reducing crop yields and driving up prices of commodities like corn, wheat, and rice that form a significant part of the global diet.

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CHART OF THE DAY

In H1 2023, the US power grid saw the addition of 16.8 GW of utility-scale electric generating capacity, with an expected 35.2 GW in H2. Solar power accounted for 35% of the new capacity, but supply chain constraints caused a 4.6 GW shortfall.

ACCLIMATE RECS

• The grid isn’t ready for the EV boom. Can better data fix that?

• Juiced e-bike vs. 11,500 miles of colorado commuting

• US businesses need low-emissions steel, and it's time for US steelmakers to get it to them

• Tracking notable recycling laws by state

• Smart solar systems to power your home

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