Industry Insights #7 Brazil’s Solar Market Moves Toward a Circular Economy

With 72.2 GW of installed solar capacity and more than 4.5 million distributed-generation systems as of June 2026, Brazil is no longer simply building a solar market. The industry is increasingly facing a question beyond how to deploy more capacity: how should solar equipment be managed throughout its entire lifecycle?

Brazil’s Bill 753/2026 seeks to bring photovoltaic modules, inverters, batteries and energy storage equipment under the country’s mandatory reverse-logistics framework, creating clearer responsibilities for manufacturers, importers, distributors and retailers to establish systems for the collection and appropriate treatment of end-of-life equipment. The proposal is currently progressing through the Chamber of Deputies and has received a favorable committee report with a substitute.

For Brazil, this is more than a waste-management issue. It signals a broader transition: as Brazil’s solar market matures, end-of-life management is becoming part of the industry’s next stage of development.

From Solar Growth to Lifecycle Responsibility

Brazil’s rapid solar expansion has created one of the world’s largest installed bases of PV equipment. As more systems reach the end of their operating lives, the industry will need reliable ways to collect, reuse, recycle or otherwise manage retired equipment.

This is where reverse logistics becomes important.

The proposed framework would require manufacturers, importers, distributors and retailers to establish dedicated reverse-logistics systems, separate from public waste-management services. It also proposes that distributed-generation systems provide users with guidance on how equipment should be returned at the end of its useful life.

The significance goes beyond waste collection.

If adopted, the framework could bring lifecycle considerations closer to how solar products are designed, sold, installed and ultimately recovered.

Recycling Starts at the Design Stage

One of the most important implications of the proposal is the growing focus on design for recyclability.

The proposed legislation introduces principles related to eco-efficiency and recyclability, including facilitating the recovery of components and materials and reducing environmental impacts throughout the product lifecycle.

This could gradually broaden the definition of a sustainable solar module.

Today, module performance is primarily evaluated through metrics such as efficiency, power output, degradation, reliability and cost. As lifecycle requirements develop, factors such as material recovery, recyclability, traceability and ease of disassembly could become increasingly relevant as well.

That does not mean recycling will replace performance as a purchasing consideration. Instead, lifecycle management could become another dimension of product value, particularly as regulations and sustainability requirements become more sophisticated.

From Compliance to Competitive Advantage

For manufacturers, the bigger question is not simply whether they can comply with future recycling requirements. Preparing for a circular solar economy does not begin when recycling regulations take effect. It starts much earlier — in product design, material choices, supply-chain partnerships, product traceability and lifecycle management systems.

Companies that build these capabilities early may be better positioned as regulatory expectations evolve.

Astronergy, for example, has been developing these capabilities as part of its broader sustainability strategy. The company has established a closed-loop approach, covering green product design, green manufacturing, product and material recycling.

In green product design and manufacturing, Astronergy has adopted Zero Busbar (ZBB) technology to reduce material use and manufacturing impacts. ZBB enables VOC-free manufacturing while also reducing silver consumption, helping lower the environmental footprint of the module production process.

At the end of the product lifecycle, Astronergy has also established recycling partnerships and strengthened its end-of-life management capabilities. In 2025, the company has completed WEEE compliance registration in 11 major European countries and further deepened its partnership with PV CYCLE to support compliant end-of-life management. According to Astronergy’s 2025 ESG Report, the product recyclability rate was 92%, with aluminum frames, glass and junction boxes reaching 100% recyclability.

The Next Challenge: Building the System

This proposal alone will not create a functioning circular PV market. The practical challenge lies in building an efficient system across Brazil’s geographically dispersed 4.5 million distributed solar systems. Success requires addressing three critical dimensions.

Collection Network Coverage with Clear Targets

The industry needs measurable milestones: 80% coverage of distributed systems by 2030, 95% by 2035. This requires a tiered approach—regional recycling centers in major cities, collection stations in mid-sized towns, and partnerships with local installers in rural areas. Clear transportation standards must prevent prolonged storage and environmental risks.

Cost Allocation Through Extended Producer Responsibility (EPR)​

• A differentiated EPR model distributes responsibility effectively:
• Manufacturers and importers: 40-50% (design, infrastructure, standards)
• Distributors and retailers: 20-30% (local collection operations)
• Consumers: 10-15% (nominal recycling fees, tax-creditable)
• Government: 10-20% (infrastructure subsidies)

A dedicated “recycling fund”—financed by 2-3% of system sales—covers remote areas and drives innovation. This model has proven successful in EU e-waste programs.

Digital Traceability and Equipment Classification

A unified tracking system combining QR codes, blockchain verification, and IoT sensors ensures transparency and prevents illegal dumping. Estimated cost: 50-80 million reais. Simultaneously, clear classification standards direct equipment appropriately:

• Reusable (10-15%): Refurbish for secondary markets
• Repairable (5-10%): Restore through maintenance
• Recyclable (75-85%): Process for material recovery

Coordination and Enforcement

Establishing a “Brazilian PV Circular Economy Committee” with regular stakeholder meetings and clear government enforcement mechanisms ensures effective execution across manufacturers, distributors, installers, and recyclers.