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Think before trashing: The second-hand solar market is booming

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By Melissa Ann Schmid, Marketing Communication Manager, EnergyBin

Over the next five years, a growing number of U.S. solar owners and operators will choose to repower their systems. Total supply of decommissioned material will increase, but not all equipment is bound for recycling. Brokers engaged in the trade of used goods, particularly second-hand modules, are seeing more quality equipment uninstalled years prior to their end-of-life.

One online exchange has seen second-hand modules for resale as young as two years old. Demand for such material is booming, as resellers broker deals in the megawatt levels. Installers can also play a role in the circular economy by redirecting energy-producing decommissioned modules to the secondary market.

Repowering and decommissions increase second-hand supply

The repowering trend is expected to spike this decade in the United States. The primary reason for repowering has to do with aging components. Wood Mackenzie expects 800 GWDC will be repowered between 2021 and 2025 due to inverters reaching the end of their 10-year lifespan.

Credit: Duke Energy

Other reasons include upgrading technology and solar policy. Falling prices for bifacial and high-efficiency modules along with next generation microinverters and batteries are accelerating repowering. Additionally, renewable portfolio standard (RPS) mandates may lead to repowering sooner than anticipated. The National Conference of State Legislatures reports that roughly half of the country’s growth in renewable energy generation since the early 2000s is related to RPS requirements.

Beyond repowering, the industry is seeing a number of uninstalls taking place prior to system end-of-life. Sometimes a property with a rooftop or ground-mount is sold, and the new owner dismantles the array. Or, a building with an existing array is demolished. Other times, an array is partially destroyed by a natural disaster, but instead of replacing just the damaged components, the insurance company decides to replace all components.

“We’ve also heard from field operators about cases where panels are installed but never connected because deals fell through for some reason,” stated Renee Kuehl, sales and marketing director at EnergyBin, an online B2B exchange where PV professionals trade new and used wholesale solar equipment.

On EnergyBin’s trading platform, a growing percentage of second-hand modules are appearing for resale, some barely two years old. Kuehl noted it’s difficult to put a number on the total supply, but traded quantities tend to be in the megawatt range. She attributes the supply to non-residential and utility-scale repowering and decommissioning.

“Within days after second-hand modules for sale are listed on our exchange, they tend to be purchased, which gives insight into the high demand for quality used modules,” she said. “If there wasn’t a strong demand, we wouldn’t see this material moving.”

What’s driving demand for second-hand modules?

In the solar industry, resale of used panels is just beginning to take off. Some solar equipment brokers have realized the economic opportunity of remarketing decommissioned solar panels.

Credit: PetersenDean

“Non-shattered panels always have someone who’s willing to buy them and put them back into use somewhere in the world,” explained Jay Granat, owner of Jay’s Energy Equipment, a wholesale solar brokerage firm. “If it’s a working solar panel, there’s always a buyer.”

In his 10 years of experience working in the secondary solar market, he has never seen such high demand for used panels than in 2020, and he expects demand to increase through the decade.

A buyer’s market for second-hand panels spans throughout the Middle East, Africa, Latin America and the Caribbean. Afghanistan is currently the top market followed by Pakistan. Other major markets include Djibouti, Somalia and Ethiopia in Africa. Buyers in these areas aren’t so much concerned about purchasing modules with no warranty because they have enough sun radiation (two-times more than temperate climates) that affords them ample energy production from used panels.

“Any panel that is 10 years old or newer and ranges from 100 W to 350+ W has resale value,” Granat noted. “Buyers from developing nations like doing business with the U.S. because sellers tend to be honest and straight-forward. Plus, the module quality is usually in excellent condition and newer technology.”

Increased demand is driven by three economic factors. First, consumers are concerned about grid reliability and are looking for ways to be self-sufficient, as is the case in regions prone to wildfires, hurricanes and other natural disasters and where grid infrastructure is vulnerable.

Second, international and national scares, like coronavirus, create spikes in demand for off-grid energy preparedness. Third, consumers with tight budgets are considering affordable alternatives.

As these drivers imply, the bulk of used panels are sold for off-grid solutions. They are installed for home energy, solar well-pumps, Wi-Fi sites, solar irrigation, battery charging and other uses. According to the World Bank, the off-grid market is a $1.75 billion sector.

Additionally, second-hand modules are deployed as replacement parts, installed in small power grids/microgrids and purchased by price-conscious homeowners, businesses and non-profit organizations that want to generate renewable energy.

Buyer considerations

Several considerations are taken into account when buyers are faced with the option to purchase second-hand modules. Such factors include age and efficiency level, price and condition.

According to NREL, the average degradation rate of a solar panel is less than 1% per year. This rate measures how efficiently sunlight is converted into power. Most manufacturers guarantee their panels will produce power at 80% or higher for the first 20 years.

Credit: Kent State University

Second-hand module buyers rely on this rate as well to calculate the number of panels needed to achieve their desired energy output. Used panels that are between one and nine years of age still operate at high-efficiency rates but are cheaper in price.

The average price ranges from 50-75% less than new modules. EnergyBin tends to see second-hand modules for resale starting at $0.10/W. The price depends on the age and efficiency level.

“You may think that non-transferable warranties may deter buyers from selecting used panels. But the lower price is more attractive for many buyers than a manufacturer’s warranty,” explained Kuehl.

A number of equipment resellers test used panels to guarantee product safety and verify amp and voltage performance levels. They reposition the product for sale in the secondary market, which may come with a limited-term service warranty. Some sellers offer a money-back guarantee based on a verified energy producing level.

Laid Sahraoui, owner of R3 Tech Limited, has also seen demand for second-hand modules increase in recent years. He commonly gets calls from buyers asking for 25 containers per order. Recently, he dealt with a large distributor in Texas on an acquisition of 25 MW. They were in “like new” condition but were decommissioned due to an insurance claim.

“We exported the panels to Karachi and then to northern Afghanistan. They were delivered to warehouses and sold in smaller quantities to villages and farmers,” he said. “Consumers in these markets have a need for sustainable energy. They are especially looking for ways to access energy and water to support agriculture and livestock.”

R3 Tech follows a strict practice to ensure decommissioned panels are properly sorted for resale or recycling. First, panels with broken glass are set aside for recycling. Those without broken glass are inspected for backsheet conditions. If the backsheet is falling apart, the panel is recycled because defective backsheets are fire hazards. The remaining panels undergo testing and then remarketed in the secondary market.

Working with a solar equipment broker

Solar installers faced with decommissioning projects can partner with a solar equipment broker that has experience with second-hand equipment to properly handle used material. Brokers are connected to buyers throughout the world. They know what’s moving, what has resale value and how to price used components. They are well-versed in export/import requirements. They can also recommend what equipment is better suited for recycling.

“As long as the panel still has at least 10 to 12 years of energy production and is functional, it has resale value. But rubbish goods are never acceptable for resale,” advised Sahraoui.

When brokers assess decommissioned equipment for resale value, they do everything from sorting to packing out for delivery to their warehouses and recycling facilities. Oftentimes, brokers will offer a cash buyout for the entire lot. They seek to ensure material is properly redirected to resale and recycling channels.

Both Sahraoui and Granat are committed to playing a role in the solar industry’s circular economy and see the secondary market as one way to reduce unnecessary waste. In other words, the resale of second-hand material prevents energy-producing modules from prematurely ending up in waste streams.

“What we really want field technicians to remember is that any panel that is not shattered or damaged is usable by someone somewhere in the world,” said Granat.

Melissa Ann Schmid is the Marketing Communication Manager at EnergyBin where she oversees marketing initiatives for the growing wholesale solar B2B exchange. She completed a Master’s in International Business at Saint Mary’s University of Minnesota focusing her thesis research on strategic corporate social responsibility initiatives and the role of for-profit/non-profit partnerships in today’s global economy.

 

TIPS FOR HOMEOWNERS OR SYSTEM OWNERS LOOKING TO SELL EQUIPMENT

EnergyBin offers a free-of-charge referral service to anyone with used equipment where EnergyBin will connect sellers to one of EnergyBin’s partners in their geographic area.  Many EnergyBin partners provide inspection, testing, and appraisal services, as well as logistics and remarketing.

Homeowners and businesses can reach EnergyBin via phone, email, or the online contact form with details about the equipment they’re interested in selling.

 

Comments

  1. Matt says

    Hi, I have 49 panels for sale and an inverter. They are about 12yrs old and in great condition. They were on my ground mount. I live in NJ by the shore. LMK if anyone is interested.
    Matt

    Reply

  2. Anilende Rodriguez Mora says

    Hello im selling 11 panels never used project was started but installers never completed wanted to see if you willing to buy the whole system that was installed..

    Reply

  4. ChristinZ says

    Hello. I have 50 used LG solar panels with inverter. Only used them for 2 yrs. I sold my home and need to get rid of them soon. Please email me if interested. Thank you.

    Reply

  5. Patricia Hernandez says

    Hi, Looking to sell 41 used solar panels, Hanwha Q cells 350w, with only 2 years of use.
    Please contact me, I’m in St Cloud Florida

    Reply

    • Shammah Peters says

      Please contact me when you’ve got some more panels up for sale. I’m a solar Engineer in Nigeria and would really need a lot of solar panels for both residential installations and commercial purposes. Here’s my email addie. sham4pett@gmail.com

      Reply

  6. Ben says

    Hi Solarman,

    The degradation is not subtracted from the panel efficiency rating. If you lose 2.5% of panel production on a 100 watt panel it will be 97.5 watt. So after 10 years it would be 90.5 watts.

    Reply

  10. Mara Finch says

    WE HAVE UNUSED PANELS,THE PROJECT WAS NEVER FINISHED,DELAYED THEN CANCELLED AND NEVER POWERED.WE HAVE ENOUGH TO SERVICE OUR ENTIRE HOME AT 125%,2400 SQFT.DETAILS:
    20.300 KW(SYSTEM SIZE)
    58 X LONGI LR4-60HPB-350
    2 SOLAR EDGE SE7600A-US,SE10000A-US
    RACKING

    PLEASE LET ME NO IF YOU ARE INTERESTED.

    Reply

  11. Roberto Aldape says

    I have a 30 panel solar system I want to sell. It was installed in May of 2022 so it’s only 10 months. I am selling my home and relocating so I need them gone.

    Email me at robert201027@gmail.com if interested. Thanks!

    Reply

  12. Anthony Davila says

    Selling a 5-year-old 8.54 KW PV ARRAY solar system. Upgrading to a bigger system and need the old one gone. Production works flawlessly and can be easily monitored using an app.
    Details:
    • (28 panels) Hanwha Q-Cells # Q.Peak-G4.1/SC305
    • Inverter: Delta # Solivia 6.6 TL
    Orlando, FL 32828 (minutes from UCF), email: ctutaskforce@gmail.com

    Reply

  13. Yessenia Bernard says

    I have 32 solar panels that I am looking to get rid. Im located in Florida. They are 3 years old

    Reply

  14. Sherrick Halsey says

    Hello,. I have 20 new First solar panels modules I’m hoping to sale.please contact if you can help or know anyone looking to buy. Thanks for your time and help..

    Reply

  16. Linda Solt says

    I have 28 optimizers and 2 Solar Edge coverters for sale. They are almost 10 years old. Please email lindasolt@gmail.com
    • plus a Combiner Box
    • 28 _ SolarEdge OP250 optimizers with a management system.
    • 2 – SolarEdge central Inverters, model SE3800A

    Reply

  18. Jerry Zapata says

    I have 20 solar panels for sale. How do I go about selling them in Houston, TX?
    Panels are about 3-4yrs old. How many of you have sold them successfully? What is the going rate for fairly new panels?

    Reply

  19. Sheryln Martin says

    Hi! I have about 18-24 solar panels on my house. They have been up there at least 12-15 years. Although they are up there, the co.didn’t finish the job. They never worked. A roofer told me that it never was connected.Another said, something about not having a computer box. I never use them! Do you think they are still in working condition? I’m going to try to get them checked out.

    Reply

  21. Michael C. says

    We are in Florida and would like to purchase 200 watt and about panels that have been deinstalled from solar farms , homes ect,, bulk is preferable but will entertain all offers

    Reply

  24. Ezekiel lara says

    I have 16 panels for sale if anyone is interested. 2 Years old but we’re not even on for the first year after installation was completed.

    Reply

  25. Hue says

    Is there a contact (rather than posting on a comment thread) or a platform to sell/buy solar panels?

    I have 50 panels, less than 4 years old. Selling because I was stupid and put them on east facing roof and now selling home and they don’t want to take over payments… because it’s east-facing and not getting the max collection it can.

    hue.schlieu@gmail.com

    Thanks,

    Reply

  26. Jason Bylina says

    Hey everyone I have something like 15 panels that are 7 years old, they were left on the home by Vivint and I own them now. I have since put a new roof and panels up so I can trying to sell these bad boys.

    Reply

  29. Ingrid Phipps says

    I have 23 7.5 kw solar panels on my roof that have never been put to use plus the Siemens boxes that have never been used. I would like to find someone that is interested in buying all the equipment and remove it, as the equipment was never used but was anchored to our roof with the incorrect hardware an rhe solar company don’t want to be responsible to fix the error. These should have 100% life.

    Reply

  30. Joan says

    Ok after all the comments of usable solar panels who buys them??
    I have 17 still in roof, soon to be removed.

    Reply

  31. Ed Gonz says

    Can someone tell me where I can sell panels that were installed in 10/20? The system did not work for us because the person who sold them to us said we would be at 115% offset when in fact we needed double the amount of panels. We are just not willing to add another 40K bill to our home. Any help would be appreciated. Thank you!

    Reply

  33. Yi Kang says

    Most plants to pay for retiring PV modules, the brokers job is to re-test them and make sure its resale able, adding reasonable costs, possible partner with services companies to add warranty for users in contacts…..will significant drop residential capital to have more business, more employees….

    Reply

  34. Melissa Anne Carroll says

    I have a pallet of unused solar panels with 1 taken out of it and we have found several next to a dumpster still in good condition, no defects, . I want to CREATED a solar powered RV park in desert with plenty of sunshine. It seems dumb to go electric grid with rolling blackouts and high winds in the area.

    Reply

  35. Solarman says

    “Over the next five years, a growing number of U.S. solar owners and operators will choose to repower their systems. Total supply of decommissioned material will increase, but not all equipment is bound for recycling. Brokers engaged in the trade of used goods, particularly second-hand modules, are seeing more quality equipment uninstalled years prior to their end-of-life.”

    Interesting, I can see a definite benefit for reusing removed solar PV panels in other fashions. Community solar PV or used utility scale modules installed in a housing tract to provide a micro-grid or even micro-grids distributed throughout the complex. Condos, townhouses, apartment complexes could all use this secondary market. The problem I can see is, when the current tariffs run out or are removed from solar PV imports, the cost of new solar PV panels now are at a low of $0.70/watt for 330 watt panels. After tariffs one might be able to find new 330 watt panels on the retail market at $0.50 to $0.60/watt. The brokers are middle-men and their profit will be built into their brokerage ‘fees’. When one looks at the overall picture, would you want to install “cheap” solar PV panels that have already had their first year LID and were once 17% efficiency are now 14% efficient or a little less with pretty much “no warranty” or new solar PV panels that still have 25 year linear warranties for perhaps $0.60/watt in the near future?

    ““As long as the panel still has at least 10 to 12 years of energy production and is functional, it has resale value. But rubbish goods are never acceptable for resale,” advised Sahraoui.””

    This is the ‘thing’, we have some actual data that the first retail old school solar PV panels like those made by ARCO in the mid to late 1970’s and Motorola from the 1980’s are still in severe condition service in remote radio, telemetry locations. They are still putting out rated power today after over 30 years of operation 24/7, 365-6. The rule of ‘thumb’ for solar PV is 3% LID light induced degradation the first year and on average 0.5% more LID each year of use after. So, a 17% module installed 10 years ago would be down 3% plus 4.5% or down to 9.5% efficiency, but, when the broker tests these panels, the finding might be much less degradation than this from real World data collected after decades of actual use. For instance in the early 2000’s Sanyo made their HIT panel technology, I believe the warranty on these at the time was 80% power output after 20 years of use. This technology seems destined for in service years of over 20 with good performance well into 30 years of service. This technology is still available when one buys Panasonic panels today. IF enough space is available, one can easily add 20% more panels and take care of any degradation concerns, still have space and money, add 30% for a more robust system.

    Reply

    • TheRealSolarman says

      Hi Solarman,

      The degradation is not subtracted from the panel efficiency rating. If you lose 2.5% of panel production on a 100 watt panel it will be 97.5 watt. So after 10 years it would be 90.5 watts.

      Reply

      • Solarman says

        Efficiency of solar PV harvest plays into the amount for a rated watts output of the panel. Most of the time after years of use there is some sun burn of the backing and hazing of the glass. Harder to clean and less light transmittance. So, you like to use a “power” pundit, I look at light and remaining efficiency that does not meet the STC rating. Why I like to use the PTC and average temperature charts for the region to determine actual “new panel” expected power outputs. I imagine it would be useful to do some of the same for a baseline of testing old panels for both end of life and expected output when installed. Is that O.K. with you “real” solarman?

        Reply

    • Robert A Burkhart says

      Electric vehicle manufacturers who emphasize battery recycling to recover materials from lithium cells that have aged to below 80% of capacity are neglecting a huge potential market.

      There are enough DIY powerwall enthusiasts wanting to repurpose cells that aren’t energy dense enough to run a car but would last for years in a less demanding residential power system. Tesla won’t go the repurpose route I’m guessing because that would undermine the sale of Tesla own Powerwalls.

      Reply

    • JORGE says

      Interesting. But after 10 years of use, assuming the 7.5% cumulative loss factor you mentioned, the efficiency of the modules would be 17% x (1-0.075) = 15.725%, instead of the 9.5% you pointed out. Just to clarify.

      Reply

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