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MacroLiveMint IndustryJul 1, 2026· 1 min read

India Eyes Solar Panel Recycling Policy to Boost Circular Economy, Manage Waste

India is developing a national policy for solar photovoltaic module recycling, aiming to manage an estimated 4.5 million tonnes of waste by 2050. The initiative seeks to establish safe disposal and recovery norms by 2029-30, fostering a circular economy for critical materials and mitigating environmental impact.

India is actively developing a comprehensive policy framework for the recycling of solar photovoltaic (PV) modules, anticipating a significant volume of waste generation in the coming decades. Projections indicate the country could face approximately 4.5 million tonnes of solar PV waste by 2050, underscoring the urgent need for a structured approach. The Ministry of New and Renewable Energy (MNRE) has initiated stakeholder consultations, engaging industry participants, environmental experts, and government bodies to draft robust norms for the safe disposal and efficient recycling of solar panels. The aim is to finalize and implement these regulations by the fiscal years 2029-30. This policy initiative is driven by a dual objective: mitigating the environmental hazards associated with PV waste and establishing a circular economy model within the burgeoning renewable energy sector. By mandating recycling, India seeks to recover valuable materials such as silicon, silver, and copper, which are critical components in solar technology. This recovery not only reduces reliance on virgin material extraction but also potentially lowers input costs for new solar panel manufacturing, enhancing the long-term economic viability of domestic solar production. The forthcoming policy is expected to outline responsibilities for manufacturers, importers, and consumers, potentially including extended producer responsibility (EPR) schemes. Such measures would internalize the end-of-life costs of solar panels, incentivizing design for recyclability and fostering a dedicated recycling infrastructure. The move aligns with India's broader sustainability goals and its commitment to scaling up renewable energy capacity while addressing associated environmental challenges.

Analyst's Take

While immediately addressing waste management, this policy will likely create new market opportunities for specialized recycling technologies and services, potentially attracting foreign direct investment in rare earth material recovery. The long implementation timeline suggests initial compliance costs for manufacturers might be delayed, but forward-looking companies could gain a competitive edge by proactively investing in design for recyclability, anticipating future material cost stability or even arbitrage opportunities from recovered resources.

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Source: LiveMint Industry