Optimizing sustainable solar panel recycling: A feasibility study of mechanical recycling method

This paper proposes a cost estimation model for a mechanical solar panel recycling plant with multiple integrated processes. A sensitivity analysis evaluates various plant capacity scenarios, assumed by the expected market share percentage within the targeted country. A mixed-integer linear programming model is applied to optimize the equipment mix for each process, minimizing capital expenditure. For operating expenditure, a linear regression model estimates fixed, and variable costs based on the quantity of processed solar panels. Thailand, a country with high renewable energy penetration, serves as the case study. The empirical results highlight the significance of economies of scale, indicating that higher plant capacities (i.e., larger market shares) enhance project feasibility. The analysis indicates that the project becomes viable starting with a 15% market share, achieving an expected net present value of 130 thousand U.S. dollars and an internal rate of return of 8 percent. Additionally, the study demonstrates the environmental benefits of the recycling plant, projecting a reduction of 3,008 tons of CO2 emissions over a 20-year project lifecycle. The empirical findings provide valuable quantitative support for policymakers aiming to reduce greenhouse gas emissions and achieve net-zero goals in the energy sector, promoting sustainable waste management and renewable energy practices.