Solarcycle cited a potential funding shortage for the pause at its plant that will combine solar panel recycling and manufacturing. | AAlves/Shutterstock
Solar panel recycler and manufacturer Solarcycle has put its new facility in Cedartown, Georgia, on hold as it awaits the results of the federal budget bill.
The project was paused due to uncertainty about the future of federal tax breaks that Solarcycle is relying on to help pay for the facility, as reported by the New York Times. The new federal budget will eliminate the tax breaks on wind and solar projects that Solarcycle is relying on to pay for the facility.
The planned facility will recycle old solar panels and manufacture new ones on the same site, and is expected to cost $500 million, of which $50 million has already been spent.
“In order to make this transformation truly sustainable, it is imperative to create a circular economy for these materials and components,” Solarcycle wrote on its website. “The more we can repair, refurbish, reuse and ultimately recycle solar systems, the faster we can transition to a world without new mining operations that pollute and contribute to the climate crisis.”
Solarcycle did not respond to a request for comment by press time.
Facilities like the one to be built in Cedartown are designed to streamline solar panel recycling and manufacturing. Only 10% of solar panels are recycled, causing many to end up in landfills at the end of their 25- to 30-year lifespans, according to a report by Yale Environment 360.
The facility would also increase solar panel manufacturing in the U.S. According to a report by Solar Power World, the U.S. imported over 54 gigawatts of solar panels from countries such as Malaysia and South Korea in 2024. In the same year, the U.S. only manufactured 50 gigawatts domestically with the most generous estimates. Domestic solar panel manufacturing could ensure affordable solar energy technology as tariffs impact recycling industries.
The Cedartown facility comes after Solarcycle entered a deal with Greenbacker Renewable Energy to help expand its operations in 2023.