Life Cycle of Photovoltaic Systems: Prepare for the End of a Performance Period

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This page outlines options agencies can consider when a photovoltaic (PV) system reaches end-of-life. Key resources are provided for more details on approaching this phase. Return to the Life Cycle of PV Systems landing page to explore more phases in this process.

Determining End of Performance

The typical performance period for a photovoltaic system is 20 to 30 years. The costs associated with decommissioning should be budgeted for in the project’s financial plan.

Circumstances that could indicate the end of system life or the end of the performance period include:

  • The end of a land-use agreement that requires system removal
  • The expiration of a power purchase agreement, utility interconnection agreement, or operating permit
  • Severe weather damage or fire that prevents system operation
    • Note: Partial system damage may require recycling and disposal considerations for damaged components but does not necessarily trigger the end of system life
  • A business decision based on degraded performance and high operating costs.

Alternatives at the end of the performance period can be found in the following sections.

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The PV system contract should state what is planned at the end of system life to create transparency around available options and associated costs.

Extend the Performance Period

Extending the performance period means continuing to operate an aging but functional PV system, often with reduced performance and rising operating costs. Options include:

  • Extending the power purchase agreement
  • Extending the utility interconnection agreement if it had a limited term
  • Extending operating or land-use permits
  • Transferring system ownership to the site owner or a third party
  • Acknowledging that system performance has declined and may continue to degrade
  • Recognizing that operation and maintenance (O&M) costs may increase due to aging equipment and the unavailability of replacement parts.

Refurbish the PV System

Refurbishing the PV system involves identifying system deficiencies through inspection and testing and completing necessary repairs or part replacements. Agencies should anticipate:

  • Performing detailed physical and electrical inspections and testing to identify any problems
  • Fixing any deficiencies, including replacing failed components
  • Replacing parts of an old system that might become increasingly hard to find and expensive
  • Training staff on legacy equipment, software, and maintenance procedures
  • Accepting limited upgrade opportunities to meet new standards or capabilities
  • Assuming that the cost for refurbishing could be high
  • Accepting that the intent of the refurbishment might be to operate the system for an additional 10 to 15 years
  • Recognizing continued PV module degradation.

Repower the PV System

Repowering the PV system involves installing new PV modules and inverters with the most recent features and high efficiency, resulting in a functionally new system. Agencies should anticipate:

  • Redesigning the system to accommodate new design objectives related to power, maintainability, safety, and security
  • Installing new PV arrays with improved efficiency, thermal degradation, and physical strength of new PV modules
  • Installing new inverters with advanced control capabilities and the reliability of new technology
  • Leveraging existing site permits, utility interconnections, and favorable power purchase prices or incentives
  • Extending operations for 20 years or more.

Decommission the PV System

Decommissioning involves removing hardware and restoring the site. This includes:

  • Removing the PV array
  • Removing the balance-of-system components (such as racks, foundations, and enclosures)
  • Restoring the site to its original condition or adapting it for a new use, such as a parking lot
  • Recognizing the costs of decommissioning and recycling components
  • Reviewing the decommissioning plan, which should be established at system startup and include components listed in the Commissioning section.

Recycle or Upcycle Components

Recycling and reuse of PV panels is an emerging area. Best practices include:

  • Recycling as much equipment as possible when removing a system
  • Considering local regulations that may restrict the reuse or repair of older systems (e.g., due to newer rapid shutdown requirements)
  • Properly disposing of electronic components that cannot be recycled
  • Considering whether reusing the site and existing infrastructure (e.g., civil and electrical works, permits, and contracts) is more economical than decommissioning and removal
  • Considering local solid waste regulations, which may regulate PV system components and modules as potentially hazardous waste under the Resource Conservation and Recovery Act of 1976
  • Considering industry-led PV system recycling initiatives
  • Considering upcycling materials which refers to refurbishing, transporting, and creatively reusing materials in other PV systems away from the original system site, such as in off-grid areas or low- and middle-income countries. 

PV System Life Cycle

You're on phase 4 of the PV System Life Cycle. Learn more about each phase and explore key resources: