The environmental promise of solar energy could be undermined if its end-of-life management is not properly addressed, according to a report by Hong Leong Investment Bank (HLIB) Research. While solar power is a key driver of Malaysia’s renewable energy transition, the lack of robust recycling infrastructure threatens to derail its long-term sustainability.
Malaysia has set a bold target—57 gigawatts of renewable energy capacity by 2050. Yet, as HLIB Research points out, the country lags behind in managing the waste generated by aging solar panels. Without proper disposal and recycling mechanisms, the environmental gains from solar energy could be eroded by mounting panel waste.
Globally, an estimated 212 million tonnes of solar panel waste is expected by 2050. In Malaysia, where solar is gaining traction through large-scale deployment, the recycling industry remains nascent and underfunded. Zenviro Solar, one of the country’s early movers in panel recycling, has highlighted financing gaps and infrastructure deficiencies as major barriers to growth.
HLIB suggests that engineering, procurement, construction, and commissioning (EPCC) players could eventually play a pivotal role in building out Malaysia’s recycling ecosystem. By recovering valuable materials like silicon, silver, and copper, recycling can cut down on mining, reduce manufacturing footprints, and fuel a circular economy—an increasingly urgent priority for the renewables industry.
The global solar panel recycling market is on a strong growth trajectory, with analysts projecting a compound annual growth rate of 20% to 30% through 2030. This is being driven by evolving regulations, technical innovations, and growing environmental consciousness. Improved recycling technologies are expected to boost efficiency and economic viability, helping scale adoption worldwide.
However, Malaysia remains behind the curve compared to regions like the European Union—governed by the Waste Electrical and Electronic Equipment (WEEE) Directive—and Singapore, which enforces the Resource Sustainability Act. Currently, Malaysia relies on the broader Environmental Quality Act 1974 to manage e-waste, but draft guidelines are in the works. These are expected to incorporate Extended Producer Responsibility (EPR), buyback programs, and formalized collection centres.
HLIB Research’s visit to Zenviro Solar revealed that many decommissioned panels are either dumped in landfills, warehoused, or exported to lower-income countries—a practice that undermines circular economy goals. Recycling remains economically unviable at scale, and specialist recyclers continue to face acute financing challenges.
Despite these hurdles, companies like Solarvest Holdings Bhd are making strides. Backed by a strong project pipeline, Solarvest is actively adopting a waste hierarchy approach that prioritizes reuse and recycling. HLIB has issued a “buy” rating on Solarvest with a target price of RM2.25 per share, citing the company’s proactive stance on sustainability and its role in driving Malaysia’s clean energy ambitions.
Overall, HLIB maintains an “overweight” outlook on the renewables sector, but warns that without targeted investment and regulatory support for recycling infrastructure, the solar boom risks creating a new environmental liability.
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