Addressing the Environmental Challenges of Solar Panel Disposal

The solar power market is continuing its rapid growth.

Driven by the feed-in tariff (FIT) system introduced in 2012 and rising demand for renewable energy, solar power generation is projected to double by 2030.

However, with a typical lifespan of around 20 years, the disposal of old panels has emerged as a major societal issue. Concerns are mounting over abandoned panels, illegal dumping, and the potential release of toxic substances. It is estimated that used panels could eventually account for up to 6% of the annual volume of industrial waste, paradoxically turning solar power generation—considered an environmentally friendly option—into a potential environmental burden.

Marubeni, with its extensive experience in the electric power sector—from designing and constructing power plants to selling electricity—recognized the urgent need to address the reuse and recycling of solar panels. This led Marubeni to initiate a new project in 2019, which was later adopted by the Ministry of Environment as a demonstration project in 2021. In 2023, a partnership was formed with Hamada, a firm specializing in waste separation and disposal, and Rexia was launched as a joint venture dedicated to the reuse and recycling of solar panels.

Centralized Supply Chain Management: Meeting Corporate Needs Efficiently

Rexia provides a digital platform specifically designed for the reuse and recycling of used solar panels. The company consults with businesses disposing of panels in order to purchase and resell reusable products, or when purchase is not feasible, promote recycling through partnerships with companies across Japan.

Collaborating with a major insurance provider, Rexia offers a three-year warranty on reused panels. The company manages the entire supply chain from collection to reuse, and manages to achieve swift delivery by offering both reuse and recycling solutions, conducting rigorous inspections and maintaining robust inventory. This streamlined supply chain model offers panels at 40-50% lower prices than new ones, while substantially cutting CO2 emissions.

Following a successful demonstration, the commercial version of Rexia’s service was launched in July 2024. Reused panels from Rexia are already being deployed in innovative projects, such as an EV car-sharing demonstration and a virtual power purchase agreement (PPA) in Japan, where the environmental value of the panels is traded between the power generation company and the customer.

Leading Japan’s First Solar Panel Reuse and Recycling Initiative

Rexia is leading the way in creating a new market for the reuse and recycling of solar panels. Previously, there was limited data on used solar panels in Japan, and no established guarantee systems, resulting in a lack of business practices and tangible track records.

Marubeni, initially lacking expertise in reuse and recycling when it began the demonstration project in 2021, managed to commercialize the project by partnering with Hamada, a leading firm in the waste management industry, while also leveraging its own business acumen. The resulting company dedicated to the reuse and recycling of solar panels is a pioneer in Japan and remains rare globally.

The launch of Rexia has been met with strong interest both inside and outside the industry. The company has attracted coverage from major media outlets, and Marubeni has seen a surge in inquiries about reuse and recycling from its business divisions beyond the electric power sector.

Redefining Logistics and Creating New Market Opportunities

In October 2023, Marubeni signed a partnership agreement with Tottori Prefecture and the Tottori Industrial Resource Recycling Association to promote the reuse of solar panels. The company also joined the Solar Reuse and Recycling Association to broaden its network and create new markets. Although the current market is small, Marubeni is preparing for a future of mass panel disposal, anticipated to start around 2030, potentially ushering in a new circular economy.

The efforts of Marubeni and Rexia not only address this pressing societal challenge and kick-start a new economy, but also pave the way for a future-oriented value chain. As a general trading company, Marubeni has long managed supply chains across various sectors, but its operations have primarily focused on “arterial logistics,” which involves moving goods from producers to consumers. However, as society and the economy mature, the importance of “venous logistics”—the movement of goods from consumers back into the supply chain to promote resource recycling—is expected to grow.

Marubeni, with its vast experience in managing logistics across diverse sectors, is uniquely positioned to capitalize on this shift. As Rexia’s business expands and the recycling of solar panels becomes more prevalent, the accumulation of data will create opportunities for new data-driven solutions. Instead of merely adopting existing digital technologies, real innovation comes from the meticulous effort to create the data and markets needed to capitalize on digital advancements.