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Overview of the chaos in photovoltaic recycling: component mud coating adds weight
May 20 2026


In the current photovoltaic recycling and second-hand module trading market, the cargo delivery process has long given rise to quite a few industry malpractices, among which the most intuitive and also the most harmful to the interests of all parties is the bad practice of inserting bricks to add weight when stacking and loading modules.
Among the various hidden frauds in photovoltaic module recycling transactions, compared with the blatant "brick inserting," applying mud to modules to increase weight has become a new means for unscrupulous operators to seek improper gains due to its extreme concealment and deceptiveness, making it harder to detect and more likely to cause irreversible losses, further aggravating the disorder in the photovoltaic recycling market and also putting the protection of sellers' rights and interests in a difficult position.
Such malpractices are mainly concentrated in the recycling and full-truck delivery stages of second-hand photovoltaic modules, especially targeting decommissioned dismantled modules and factory downgraded modules. Unscrupulous recyclers and middlemen exploit the structural characteristics of the modules themselves and loopholes in trading scenarios, deliberately applying mud to achieve concealed weight addition and profiteering. Their operating methods are meticulous, and their concealment far exceeds that of traditional brick inserting practices.




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I. Industry Development Background

With the explosive expansion of the global photovoltaic industry over many years, photovoltaic power stations built on a large scale in the early stage have successively entered the cycle of technical upgrading and decommissioning, and second-hand photovoltaic modules have gradually formed a large-scale circulation market, becoming a core component of the photovoltaic recycling industry. Second-hand photovoltaic modules mainly include three categories: decommissioned dismantled modules from power stations, downgraded defective modules from the production process, and refurbished repaired modules. They are not only important carriers of resource recycling, but also carry the economic value of reducing photovoltaic project construction costs and expanding into emerging overseas markets.
At present, the photovoltaic recycling and second-hand module market is at a critical stage of transformation from wild growth to standardization, but the industry's overall characteristics of spontaneous disorder are prominent. A large number of dismantled modules and downgraded modules are circulated privately through informal channels, lacking unified quality inspection standards and traceability supervision systems, which not only disrupts the normal order of the photovoltaic recycling industry, but also creates safety hazards for residential photovoltaic and off-grid power station operations. Under the support of dual-carbon goals and circular economy policies, clarifying the current situation, circulation channels, and existing problems of the second-hand module market, and promoting the standardized and industrialized development of the photovoltaic recycling industry, has become an urgent need for industry development.

II. Market Size and Growth Trends of Second-hand Photovoltaic Modules

(I) Overall Market Size

The domestic second-hand photovoltaic module market has maintained rapid expansion, with an average annual growth rate of more than 15%. In 2023, the market size reached 4.5GW, and the total transaction value exceeded 4.12 billion yuan; in 2024, it is expected to increase to 5.8GW, with transaction value exceeding 5.2 billion yuan. In the past five years, the market's average annual compound growth rate has been as high as 18%, showing strong growth momentum.
According to industry forecasts, by 2030 the domestic volume of retired photovoltaic modules will exceed 15GW. Combined with modules replaced in advance due to power station technical upgrades, the circulation volume of second-hand modules will usher in exponential growth, and the market potential of the photovoltaic recycling industry at the 100-billion-yuan level will gradually be released.

(II) Segmented Market Structure

  1. Decommissioned dismantled modules: accounting for 65% of the market, they are the main circulation force, mostly replacement modules from large ground-mounted power stations that have operated for 5-10 years, with power degradation of 10%-20%; in the next five years, the growth rate will remain above 22.5%;
  2. Production downgraded modules: accounting for 35%, originating from quality inspection elimination at module factories, with no service records but with appearance or minor electrical performance defects; affected by manufacturing process upgrades, the growth rate has slowed to 8.5%;
  3. Refurbished repaired modules: currently accounting for only 3.3% of the market, but relying on the advantage of high added value, the growth rate has reached 35%, making it a highly promising segmented track in the photovoltaic recycling field.

(III) Regional Distribution Characteristics

The market shows a pattern of separation between production and sales: the supply side is concentrated in western photovoltaic-rich regions such as Xinjiang, Qinghai, and Gansu, which are core sources of decommissioned dismantled modules; the domestic demand side is focused on regions such as Shandong, Langfang in Hebei, and Henan, where residential photovoltaic is popularized and price sensitivity is high; coastal ports such as Ningbo in Zhejiang, Kunshan in Jiangsu, and Shenzhen rely on logistics advantages to become core collection and distribution hubs for exporting second-hand modules overseas.

III. Industry Chain and Circulation Channels of Second-hand Photovoltaic Modules

(I) Complete Industry Chain Structure

  1. Upstream supply side: photovoltaic power station operators provide decommissioned dismantled modules, and module manufacturing enterprises provide downgraded modules with appearance defects or substandard electrical performance;
  2. Midstream circulation side: covering individual recyclers, professional recycling enterprises, simple testing institutions, module refurbishment plants, and trading middlemen, undertaking core functions such as source collection, sorting and cleaning, fault repair, and channel distribution, and also serving as a key link in the photovoltaic recycling industry;
  3. Downstream application side: domestically aimed at rural residential self-built photovoltaic, agricultural photovoltaic, and off-grid lighting systems; overseas mainly flowing to regions with weak power infrastructure such as Southeast Asia, Africa, and South America, relying on price advantages to capture microgrid and off-grid power supply markets.

(II) Mainstream Circulation Channels

  1. Offline private transactions: the traditional mainstream channel, dominated by insider circles in the industry, small traders, and scalpers, with cash / private card settlement and no contracts or invoices; source matching is flexible but transactions are concealed, with no formal quality inspection or transaction credentials, making it the main route for the circulation of inferior modules;
  2. Online platform customer acquisition: relying on second-hand e-commerce, industry groups, and social media to publish source information, achieving nationwide source matching and breaking geographical restrictions, but marked as "tax-exclusive cash price," with private transfers and invoice avoidance, lacking platform supervision, and product quality varying greatly;
  3. Bulk export trade: coastal traders centrally purchase downgraded modules and ordinary dismantled modules, exporting full containers to overseas low-end markets; both procurement and sales involve cash without invoices, with under-declared customs prices, leaving considerable profit margins, and this is an important current flow direction for second-hand modules;
  4. Enterprise-oriented recycling: some formal photovoltaic recycling enterprises sign agreements with power stations and module factories to recycle retired and defective modules, conduct professional testing, refurbishment and reuse or material dismantling and recycling; a small number of enterprises issue invoices and pay taxes in compliance, but their proportion is insufficient.

IV. Existing Core Market Pain Points

(I) Absence of a Quality Standard System

The industry lacks unified standards for the testing, grading, and pricing of second-hand modules. Transactions rely only on visual inspection and simple voltage tests, making it impossible to identify hidden issues such as microcracks, PID degradation, and internal aging. The market generally suffers from the phenomenon of good and bad products being sold at the same price and inferior goods being passed off as good ones, seriously damaging the transaction trust system and restricting the large-scale development of the photovoltaic recycling industry.

(II) Fragmented Market Structure

The industry lacks leading enterprises with capabilities in testing, refurbishment, and channel integration, while a large number of individual operators, small workshops, and small traders compete disorderly. Some unqualified merchants use violent dismantling and illegal refurbishment methods to compress costs, disrupting market pricing and at the same time causing resource waste and environmental pollution.

(III) Missing Circulation Supervision and Traceability

The proportion of informal circulation of second-hand modules is high, and a full-process traceability certification system has not been established. Illegal refurbishment and counterfeit branded modules are common. The export link lacks standardized control, and the outflow of inferior modules not only affects the industry's reputation, but also creates hidden risks for international trade.

(IV) Chaotic Pricing Mechanism

The price of second-hand modules is far lower than that of new products, but fluctuates sharply under the influence of silicon material prices, new product market conditions, and source supply and demand. In addition, due to the lack of professional valuation standards, transaction price negotiation is highly arbitrary, making it difficult to protect the rights and interests of small and medium-sized practitioners and end users. Combined with practices such as inserting bricks to add weight during loading, transaction unfairness is further aggravated.

V. Recommendations for the Development of the Photovoltaic Recycling and Second-hand Module Industry

(I) Establish Unified Quality and Grading Standards

Led by industry associations, formulate official testing specifications for second-hand photovoltaic modules, clearly define the indicators, degradation thresholds, and safety standards for dismantled modules, downgraded modules, and refurbished modules, classify grades and provide supporting standardized pricing references, and put an end to the industry's disorder caused by the lack of standards.

(II) Improve Traceability Supervision and Industry Access

Regulatory authorities should build a traceability certification platform for second-hand photovoltaic modules to achieve full-process traceability covering recycling, testing, refurbishment, trading, and export. Raise industry entry thresholds, ban unqualified small workshops and illegal refurbishment outlets, standardize market competition order, and strictly investigate various illegal weight-adding practices in cargo loading and transportation.

(III) Innovate Industry Business Models

Enterprises should rely on the photovoltaic recycling industry chain to build an integrated service model of testing - certification - refurbishment - trading - export, using professional technology to eliminate information asymmetry and establish brand credibility. At the same time, increase investment in refurbishment technology R&D, enhance the added value of second-hand modules, and transform from low-end scrap recycling to asset reoperation.

(IV) Deeply Cultivate Domestic and Overseas Segmented Markets

Domestically, focus on sinking markets such as rural residential use, agricultural photovoltaic, and off-grid power stations to meet demand for low-price and high cost-performance products; overseas, focus on emerging markets such as Southeast Asia and Africa, improve overseas channel layout, and rely on cost advantages to seize the microgrid construction market and release export trade dividends.

VI. Outlook on Industry Development Trends

In the short term, the second-hand photovoltaic module market will still face difficulties such as lack of standards, missing supervision, low-price competition, and various unhealthy practices in cargo transactions; in the long term, with the implementation of dual-carbon policies, the improvement of the circular economy system, and the full arrival of the decommissioning wave, the photovoltaic recycling industry will usher in reshuffling and integration. In the next 3-5 years, professional leading enterprises will gradually rise, and the industry will move from disorderly wild growth into a new stage of standardization, regulation, and industrialization. Second-hand modules will also become an important support for green closed-loop management throughout the photovoltaic full life cycle, with broad room for long-term market development.


Original link: https://max.book118.com/html/2026/0419/6100003042012124.shtm


About RESOLAR

Shanghai RESOLAR Energy Technology Co., Ltd. is committed to becoming a recycled material photovoltaic group with deep decarbonization. RESOLAR focuses on technological innovation and builds a world-leading solution for component recycling, impurity removal of damaged cells, recycled silicon materials and cells, and cascaded utilization of components. With professional technology and services, we help customers realize the recycling and reuse of waste photovoltaic resources, and make positive contributions to the development of environmental protection and new energy industries. For more detailed information, you can browse the official website: www.resolartech.com .

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