PETALING JAYA: Hong Leong Investment Bank Research (HLIB Research) says solar energy’s environmental benefits hinge on robust end-of-life management to prevent waste from undermining its ecological gains.
The research house said solar energy is crucial to Malaysia’s energy transition and the country has an ambitious target of 57 gigawatts of energy from renewable sources by 2050. However the renewables sector suffers from a lack of sufficient recycling infrastructure.
HLIB Research said solar energy’s environmental benefits hinge on robust end-of-life management to prevent waste from undermining its ecological gains.
Globally, about 212 million tonnes of waste is projected by 2050 due to the finite lifespans of solar panels.
The research house noted one budding panel recycler, Zenviro Solar, highlighted financing and infrastructure hurdles underscoring the need for robust guidelines moving forward.
In the future, engineering, procurement, construction and commissioning (EPCC) could be playing a role in the recycling ecosystem, the research house said.
Recycling valuable materials such as silicon, silver, and copper reduces reliance on virgin resources, mitigating mining and manufacturing impacts and fosters a circular economy that minimises solar power’s footprint.
The global solar panel recycling market is poised for significant growth, with forecasts projecting a 20% to 30% compound annual growth rate from 2022-2030 driven by regulatory mandates, technological advancements and rising environmental awareness.
Innovations enhancing recycling efficiency will improve economics, thereby incentivising broader adoption.
Malaysia, which is developing its solar waste-management guidelines, trails regions like the European Union with its Waste Electrical and Electronic Equipment Directive and Singapore’s Resource Sustainability Act.
Malaysia’s Environmental Quality Act 1974 broadly governs e-waste, while draft guidelines reportedly explore Extended Producer Responsibility, buyback systems and collection centres.
HLIB Research, which recently visited Zenviro Solar noted there were challenges, including many panels being landfilled or warehoused and re-exported to poorer nations raising circularity concerns.
Challenges in recovery were also hampered by weak economics from lack of scalability, while specialist recyclers struggle with financing.
HLIB Research, which has a “buy” call on Solarvest Holdings Bhd
with a target price of RM2.25 a share, said the group is committed towards recycling and minimising waste, adopting a waste hierarchy approach.
Solarvest has been a major beneficiary of an extended order book upcycle driven by large scale projects.
HLIB Research has an “overweight” call on the renewables sector overall.
