Renewable Energy Market Review 2025
What is a circular economy? Designed to keep resources in use for as long as possible, circular economy models aim to eliminate waste and maximize natural resources by designing systems where materials are reused, recycled, or regenerated. Circular economy models combat the long-term limitations of linear models where products are designed for singular use and disposed into landfill, and instead provide a more sustainable long-term operating model for the business and limit the impact to the environment.
The lifecycle of solar and wind technologies is contributing to the linear economy as the sector is not designed for reusing old, obsolete equipment. But while there is a limited amount of recyclable renewable energy technology, this is improving. Specialized companies are emerging.
Advancements in science and technology have enabled recycling of some solar cells to produce new cells, and both solar and wind components have valuable materials that can be extracted like silicon, silver and copper.
Raw materials can also be harvested from batteries. These recovered materials can be fed back into new battery production, reducing the demand for virgin raw materials and mitigating the environmental impacts of mining. BESS developers are also exploring how batteries that no longer meet the high-performance demands of electric vehicles can be given a second life in less demanding energy storage roles. This reuse reduces waste, prevents contamination from battery disposal and delays the need for new battery production, supporting a more sustainable energy system and illustrating a practical circular economy implementation.
This step toward a circular economy is focused on producing more durable products which can be re-used when sites reach the end of their lifecycle, lowering development costs and unlocking commercial opportunities:
Mitigating risks related to resource scarcity, regulatory penalties and waste management costs can secure a long-term competitive advantage.
To support environmental goals, circular economies can limit waste, reduce the reliance on mining and processing of raw materials, helping to support decarbonization efforts across the natural resources industry and boost innovation across the sector.
To align with social values, circular economies can create jobs that demand news kills, creating a forward-thinking workforce that supports economic growth.
To uphold governance obligations, circular economies help companies operate with transparency to track environmental impacts, manage circular initiatives, and ensure compliance with evolving regulations. By demonstrating clean ESG commitments, renewable energy companies can build investor confidence, attract ESG-focused investors and improve long-term financial performance.
The renewable energy sector currently has a small percentage of assets that have reached the end of their life compared to assets and projects that are currently operational and in the pipeline to begin construction. This will change rapidly in the years to come and has the potential to create masses of waste.
Turbine blades are particularly challenging, as they are typically made of composite materials such as fibreglass and carbon fibre which are difficult to recycle.
“By adopting this philosophy, we can achieve a smoother energy transition that tackles climate change and builds a more resilient operating model for the business.”
Brooke Beales | Account Executive, Global Renewable Energy, Willis Natural Resources
Recycling technologies comes at a higher upfront cost than disposal. According to the National Renewable Energy Laboratory, in the U.S., it can cost $15 to $45 to recycle one solar panel versus only $1 to $5 to dispose of it to landfill[1].
Government regulation often lags behind technological capabilities and until renewable energy manufacturers are held accountable to produce durable and recyclable products by law, balance sheet strength and profitability will keep the needle pointed toward the current linear model. But with supportive policies and innovation incentives, the sector can transform the industry to become more environmentally responsible and build a sustainable operating model simultaneously.
For renewable energy companies, being an early mover to adopt a circular economy model as a strategic enabler will create new opportunities to build long-term investor partnerships and innovation.
“By adopting this philosophy, we can achieve a smoother energy transition that tackles climate change and builds a more resilient operating model for the business.” Brooke Beales, Account Executive, Global Renewable Energy, Willis Natural Resources
Download the full article to explore how a circular economy model can be a strategic enabler for renewables companies committed to sustainable growth.
| Title | File Type | File Size |
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| How circular economy models can help renewable energy companies secure a competitive advantage | .4 MB |
