Recently, the provincial government unveiled new details on an upcoming solar recycling strategy. Starting October 1st, 2026, a $14 eco fee will be included on solar panels purchased in Alberta. Overseen by the Alberta Recycling Management Authority (ARMA), which oversees other types of eco fees for electronics, automotive parts, and other recyclable materials, this eco fee is the first for solar photovoltaic panels in Canada.
There has been a small degree of controversy in the sector relating to this eco fee. We will objectively explain the fee, the arguments for and against it, and explain how it might affect solar installations beyond 2026.
Solar Recycling
The necessity of solar recycling is an important topic. Almost unanimously, the belief in the necessity for solar recycling infrastructure is strong within the solar industry.
The renewability of the sun as an energy source is one of Solar’s biggest selling points. If thousands of solar panels end up in landfills as a result of inaction in terms of infrastructure, it will undercut this benefit.
Currently, neither Alberta, nor any other province in Canada, has established provincial recycling programs for solar equipment or implemented an eco fee on the purchase of solar panels. Previously, when it came to disposal of solar panels in Canada, the choices were limited, and many ended up in landfills. The Eco fee follows a four-year pilot program in collaboration with partners such as NAIT investigating solar recycling strategies.
Solar panels are 90% recyclable by mass, including materials such as glass, copper, aluminum, steel, and small amounts of precious metals like silver. According to the Canadian Renewable Energy Association, other than glass and metal, which can be recycled by traditional processes, very little of the remaining mass requires special treatment. Once the materials have been separated, they can be used for manufacturing future panels, or other applications.
However, recycling solar equipment poses some unique challenges. On ARMA’s previous update on the initiatives, they described what they found challenging in terms of recycling solar equipment, including
- The construction of solar panels includes multiple layers of silicon, plastic, metal, and glass, which proves hard to separate to recycle each material separately.
- The layered construction and wiring of a solar panel make solar panels largely unsuitable for regular electronics shredders and pulverizers.
- Materials such as glass and metal could potentially be hazardous when broken or damaged.
- Larger panels are hard to transport and store.
According to these updates, ARMA has found that “a more automated approach is necessary to make recycling economically viable on a larger scale”.
The Cost of Solar Recycling
Eco fees are very common in Alberta for products that are difficult to recycle, such as tires, paint, and other types of electronics. When the solar eco fee is introduced, the Eco Fee for Solar Photovoltaic panels will be the highest eco fee in Canada. The funds received from the collection of the eco fee are intended to fund the costs of recycling solar equipment, as well as the development of solar recycling and processing infrastructure in Alberta.
Some have questioned the cost of the fee, as it is the largest eco fee per any item, across all of Canada. For comparison, the highest cost for other environmental handling fees in Alberta is $2.75 for large televisions. However, it has been commonly noted that the impact of the eco fee alone will not affect solar prices by much.
According to Alberta solar installation company Raydn Renewables, when you calculate the cost of a “typical 10 kW residential system with 22 panels,” the fee increases the total costs of the project by approximately 1%. While the fourteen-dollar fee is steep comparatively to other Eco fees, it is not likely to majorly affect the costs of a solar installation alone.
Some have also questioned the timing of this eco fee. Solar panels are commonly expected to have a lifespan of approximately 25 to 30 years. Afterwards, the panels begin to lose their efficiency but can still generate electricity beyond this lifespan. Since the vast majority of solar panels in Alberta are years away from requiring recycling, some question the immediate need for the eco fee and the recycling infrastructure needed. Even at the conservative estimates of how long a panel can last before it needs recycling, the majority of panels in the province are likely more than a decade away from recycling.
Previous actions of the Albertan provincial government, such as the seven-month moratorium on solar projects in 2025, have coloured how some have received this fee. However, without reading into the events of the past, and considering the above rationale, there is nothing within the release that seems particularly punitive. Ultimately, proactive action towards recycling infrastructure is something that should be done.
Our Conclusion
The fee may seem steep or premature to some, but a solar recycling program is important to establish. Unfortunately, recycling solar poses a unique set of challenges, and one that needs funding.
It is too early to tell if the proceeds of this Eco-fee will result in strong recycling infrastructure. How the government implements solar recycling programs is to be determined. In time, we will be able to analyze this recycling fee to come to an informed opinion on the efficacy of this recycling plan. As of right now, with the information available, this fee alone does not seem like it will affect Alberta’s solar market much, if at all.
