A Guide to Solar Panel Dismantling & Cost Estimates
- Sarah Lozanova
- 7 days ago
- 7 min read
Table of Contents
As solar energy capacity increases, so will the eventual need to decommission photovoltaic (PV) projects. Although this will become a bigger issue in the next decade or two, some solar panels are being decommissioned today. Perhaps the solar array had defective solar panels, the manufacturer no longer exists, or the output of an older project is unimpressive compared to the high-efficiency solar panels and equipment readily available today.
Although few companies specialize in solar panel decommissioning, the process is relatively straightforward and mirrors the installation process in reverse. Instead of procuring new PV panels and equipment, the goal is to repurpose or recycle the existing ones. As the clean energy industry grows, so does the demand for solar decommissioning services.
It's essential to consider solar decommissioning cost estimates, as they can vary based on the complexity of the system, location, and recycling methods. This emerging market offers significant business opportunities as more solar systems reach the end of their operational life.
What is Solar Decommissioning and Panel Dismantling?
Solar panel decommissioning involves removing PV panels and all associated components from a site and restoring the area to its original state. This comprehensive process includes dismantling equipment such as racking systems, wiring, inverters, transformers, and foundations.
Restoring the site is a critical component of the process and can involve:
De-compacting soils
Backfilling excavations
Removing access roads
Revegetation, or returning the land to agricultural use
Decommissioning solar panels and large-scale commercial solar farms ensures the land is returned to a safe and usable condition.
State and Federal Policies Governing Solar Decommissioning
As of 2025, laws and regulations governing solar panel decommissioning are rapidly evolving, primarily at the state level, as the U.S. does not have specific federal policies directly governing PV recycling and decommissioning.
Federal Solar Panel Decommissioning Policies
The EPA has developed regulations for managing solar waste as part of its Universal Waste regulations. These efforts aim to improve the recycling and disposal of renewable energy wastes, including solar panels, by promoting better waste management practices through state-level policies.
State-Level Solar Panel Decommissioning Policies
Some states have policies that impact solar decommissioning. Some of these states include:
California:Â Implements stringent regulations for the recycling of solar panels under its hazardous waste management rules.
Georgia: Starting in January 2025, it mandates solar decommissioning requirements for companies leasing property for solar farms, including financial assurance every five years.
Maine: As of October 18, 2021, requires developers of solar power projects occupying 3 or more acres to submit an approved decommissioning plan and financial assurance to cover the cost of solar panel dismantling.
Nevada: Involves specific requirements for the recycling and disposal of solar panels as part of the state’s waste management policies.
Washington: Â Requires manufacturers to offer recycling options for solar panels sold after July 1, 2017
The Process of Decommissioning a Solar Farm
The process of solar panel dismantling and restoring the site begins with rigorous planning. Solar contractors start by creating a comprehensive plan, or referring to an existing one, to ensure all local ordinances and solar decommissioning laws are followed.
Key Steps in Solar Panel Dismantling and Decommissioning
Here are the key steps commonly involved in decommissioning a PV power plant:
Planning and Preparation: Develop a detailed solar decommissioning plan that outlines the scope, timeline, and procedures for solar panel dismantling and related infrastructure. This includes obtaining all required permits and approvals.
Safety First:Â Turning off the solar system is critical to promote worker safety.
Research: Determine if local ordinances or state solar decommissioning laws exist, and confirm the landowner’s intended future use of the land.
Safety and Environmental Considerations:Â Implement safety measures to protect workers and the environment. This includes the removal and proper disposal of any hazardous materials (like batteries or electronic components) and implementing erosion control and water management strategies.
Equipment & Solar Panel Dismantling/Removal: This phase is the core of decommissioning solar panels. The PV panels, inverters, and other equipment are safely disassembled and removed from the site. This task, which includes complex solar panel dismantling of racking systems, requires equipment such as skid-steer loaders and excavators to move the dismantled components.
Material Destination (Repurpose or Recycle): Determine where all materials will go. It’s critical to identify if reusing the decommissioned solar panels and other equipment is an option to promote sustainability and minimize waste.
PV Power Plant Site Restoration:Â After removing the equipment, the site needs to be properly restored. This may involve activities such as soil remediation, vegetation restoration, and erosion control measures to return the land to its original state.
Financial Assurance:Â Confirm that funds are set aside (often via a decommissioning bond) to ensure the costs of decommissioning a solar farm are fully covered by the project owner.
What Happens to Decommissioned Solar System Components?
When you create a plan for solar panel decommissioning, you must identify what will happen to the decommissioned solar panels, inverters, racking system, and other components.
Repurposing Decommissioned Solar Panels and Equipment
Several companies are capitalizing on end-of-life management by refurbishing and reselling used solar panels and components. While older panels may produce less electricity, they can still contribute to clean energy generation, making them viable for resale.
Companies like FabTech Services and We Recycle Solar specialize in refurbishing used panels, and other installers either sell modules to clients or donate them to charities. Selling locally helps minimize shipping costs and reduces greenhouse gas emissions, contributing to sustainable practices.
Recycling PV Panel And Components
Not all modules are suitable for reuse, making recycling the next-best option. Although many of the materials in solar modules are recyclable (copper, steel, aluminum, zinc, and silver), the process can be expensive due to the labor involved in solar panel dismantling.
The SEIA launched the National PV Recycling Program and has designated Preferred Recycling Partners that meet the SEIA’s standards. Solar inverters are commonly recycled with electronic waste and racking systems with similar metal scrap. As more solar installations reach the end of their useful lives, the ease of recycling component parts will hopefully improve equally.
Solar Decommissioning Cost Estimates
The costs of decommissioning solar farms vary depending on their size, location, and complexity. The project owner, not the local community or landowner, is responsible for covering the decommissioning expenses.
Some of the most labor-intensive aspects of removing the solar equipment include solar panel dismantling, removing ground screws, and removing power poles. When creating a decommissioning plan with cost estimates, also factor in inflation.
The solar decommissioning cost estimates for a 2-megawatt solar farm in Massachusetts include the costs of dismantling a project, but not equipment disposal costs, which vary depending on if there is a secondary market for repurposed components. The costs outlined below are estimates; actual decommissioning costs may vary.
FAQs About Decommissioning Solar Panels
Gain answers to common questions about solar panel dismantling and end-of-life management for decommissioned solar panels.
What happens to old solar panels?
Old solar panels can be recycled, repurposed (used in less demanding applications), or, unfortunately, disposed of in landfills. Recycling is the most eco-friendly option, recovering valuable materials like silicon and glass. Solar panel decommissioning involves safely removing panels and restoring the site, ensuring responsible handling of this equipment.
What is a decommissioning bond for a solar project?
A decommissioning bond for solar projects is a financial guarantee ensuring that the solar developer covers the costs of solar panel dismantling and removal at the end of their life. This bond helps with solar decommissioning cost estimates, ensuring the land is restored and preventing environmental risks. It protects landowners and communities from project abandonment.
Can solar panels go to landfills?
While technically possible in some jurisdictions, it is highly discouraged. If improperly disposed of, decommissioned solar panels can leach chemicals into groundwater, causing pollution. Additionally, solar PV panels contain many raw materials (copper, silver, aluminum) that are wasted if disposed of. Proper handling and recycling are essential to minimize the industry’s environmental impact.
Why would a solar array need decommissioning if it was barely used?
Even if a solar project was barely used, early solar panel dismantling and decommissioning can occur for several reasons, including:
Defective Equipment:Â A system-wide defect or manufacturer failure might necessitate early removal.
Site Repurposing:Â The land owner may decide to terminate the lease to use the site for a different, more lucrative purpose.
Manufacturer Failure:Â If the manufacturer goes out of business, warranty and maintenance support may disappear, making the project non-viable.
Are solar decommissioning cost estimates tax-deductible?
Yes, in most common business structures, solar decommissioning cost estimates and the actual costs of solar panel dismantling and site restoration are considered ordinary and necessary business expenses. These expenses are typically tax-deductible for the project owner in the year they are incurred.
How long does site restoration take after solar panel dismantling?
The actual physical work of solar panel dismantling and removing equipment can take anywhere from a few weeks for smaller sites to three to six months for very large solar farms. However, the full PV power plant site restoration (including soil remediation and successful revegetation) often takes longer, potentially spanning a full growing season to ensure the land is returned to its original condition.
Decommissioning Solar Panel Projects Is Becoming Increasingly Common
Although solar power systems are designed to last for decades, some owners are choosing to decommission solar panel projects earlier than expected to upgrade to newer, more efficient models. Given that the solar industry is still relatively young, the processes and regulations surrounding solar decommissioning are evolving quickly.
As the volume of decommissioned solar panels increases, the secondary market for equipment is rapidly changing, presenting unique challenges and opportunities. Solar panel dismantling and solar decommissioning services can create lucrative business opportunities for solar companies looking to expand their offerings beyond installation to include end-of-life management and responsible disposal. The demand for this expertise is expected to grow significantly, positioning those with the right capabilities at the forefront of this emerging market.
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