Advancing Solar Sustainability Through Finance, Traceability, and ESG

Environmental, Social, and Governance (ESG), often tagged ‘sustainability’ in short, are now central to many stakeholders in the solar PV industry, covering not just clean energy generation but also responsible and transparent material sourcing, manufacturing, and deployment. With collaboration and ever-evolving practices, the major players in the global solar PV industry are advancing efforts to meet these often complex standards, but room for improvement exists. 

The 3rd edition of the TaiyangNews Solar & Sustainability Conference on October 9, 2025, highlighted the solar industry’s growing focus on ESG, resilience, and low-carbon solutions. Experts discussed industry developments and policy frameworks in carbon reduction efforts, supply chain traceability, circularity including recycling, and sustainable finance, emphasizing that while progress is visible, deeper accountability and innovative practices remain essential. 

The conference opened with TaiyangNews Managing Director Michael Schmela highlighting the growing significance of ESG and sustainability in the solar PV industry, as companies view these as responsibilities rather than a checklist. Progress is for all to see, he said. Schmela said that compared to only 4 out of the top 10 PV manufacturers publishing sustainability reports in 2021, now all the top 10 do this. Real change is happening, he added, but the industry as a whole can and must do much more beyond providing products to generate clean energy. He set the stage for the rest of the event by emphasizing that while there are tools from production practices to certifications, it is crucial to navigate them correctly. 

Resilience Complements Sustainability in Solar 

In his keynote, Jochen Hauff, Founder of Think Resiliency and Senior Advisor on Agrivoltaics with the Global Solar Council, said that the solar PV industry needs both sustainability and resilience. 

He explained that sustainability means creating systems that last without harming the environment or using up resources, while resilience is about being ready for change and challenges – something the solar sector faces often. For example, in times of geopolitical uncertainty, solar energy can help by creating distributed demand centers, easing grid pressure, and encouraging governments to invest in local PV manufacturing. 

The growing use of recycled materials also shows the industry’s ability to adapt and evolve. However, circularity does not only mean module recycling. It means that the product should be designed with the end in mind, which itself makes the industry resilient. 

Hauff, who led and advanced the sustainability efforts at German solar developer BayWa r.e. for 7 years, noted that the industry faces both risks and opportunities linked to climate adaptation; changing weather and solar radiation can affect yields and asset values but can also open new avenues for growth. He cited agrivoltaics, which supports regenerative agriculture, as a good example. 

He added that while uncertainties are a given in the solar sector, focusing on resilience can unlock new opportunities. But, he emphasized, resilience complements sustainability – it doesn’t replace it.  

Most importantly, Hauff argued, the green narrative itself needs to evolve from adopting sustainability to ensure we leave a better planet for future generations, to protect land, lives, and livelihoods here and now, and not sometime decades later. 

Trinasolar Details Low-Carbon Certification Strategy 

Rocky Li, Trinasolar’s Global Product Manager, shared how the company delivers industry-leading low-carbon solutions for modules and trackers worldwide. This has become especially important since low-carbon PV systems are gradually becoming a condition for international market access and a basic requirement for project bidding.  

However, different markets have different requirements across regional scenarios. In such a scenario, Li said that Trinasolar starts at the source to cover the comprehensive low-carbon certification applicable to different countries and regions around the world. This includes achieving 100% renewable energy use in its global manufacturing and operations by 2030. 

The Chinese PV manufacturer follows a 5-pillar strategy – high-efficiency i-TOPCon cells, advanced trackers, green manufacturing, vertical integration, and digital supply chain management – to ensure fully traceable, sustainable products in its supply chain. 

While modules with certified carbon footprints are already in mass production, Trinasolar is also securing similar certifications for the other products in its portfolio. For its mounting systems, the manufacturer claims to have achieved carbon footprint certification across the entire product line.

Li said these solutions and compliance with global standards help its customers secure projects and financing. This provides them with a competitive edge through transparency and reduced lifecycle emissions. 

SSI Advances Traceability Across Solar Supply Chain 

Solar Stewardship Initiative (SSI) CEO Rachel Owens highlighted that SSI members now account for 70% of global solar module manufacturing, totaling over 95 GW of module capacity with 12 certified sites since its launch in 2021. Initiated by the European solar sector association SolarPower Europe, the organization has developed into a multi-stakeholder initiative to promote responsible, transparent, and sustainable practices across the solar value chain. 

The SSI standards are aligned with the international standards and regulatory developments in the EU, among other regulations. These comprise governance, business ethics, human rights, and labor rights, among others, based on the 3 pillars of accountability – ESG and Traceability Standards, Third party audits and independent audits, and Multistakeholder governance.  

Now, the initiative is moving further upstream, bringing in additional buyers and upstream actors, informed Owens. In addition to its ESG Standard, SSI plans to roll out its first Supply Chain Traceability Standard certifications by early 2026, covering the full silicon-to-module value chain. Recently, SSI has agreed on targets that at least 80% of solar modules destined for the EEA, Switzerland, and the UK must originate from SSI-certified sites by Jan. 2027, and that a year later, 100% of those modules must be SSI-certified. 

JinkoSolar Highlights Solar Finance Challenges 
JinkoSolar is a solar frontrunner in ESG, having set a target to source 100% of its electricity needs through renewables by 2030 and rolling out zero-carbon factory production chains, among others. Lin Sun, the Head of Sustainability Development at the world’s largest module company by shipments, shared JinkoSolar’s efforts in facilitating sustainability through financing in the solar industry, including partnering with financial institutions to facilitate the trade of modules across geographies.    

At the event, she shared insights from the Global Solar Council Finance Taskforce’s (which the company chairs) flagship report: How to Finance Solar for All? Published at the London Climate Action Week, the paper maps the solar finance ecosystem, identifying core challenges across regions and value chains, while offering actionable recommendations. 

She stressed that solar finance must be redesigned for flow efficiency to accelerate the circulation of capital, information, and products. Some of the key recommendations in the position paper include promoting public-private partnerships, setting fairer investment standards, enhancing solar investment platforms, creating intermediaries to strengthen bank due diligence and dialogue, and developing innovative financing models for new solar and energy storage applications. 

Urging Deeper ESG Accountability in Solar 

Marcello Passaro, the Founder & Managing Consultant of Sunzest Solar, and ESG Bankability and Reliability Contributor at the European Technology and Innovation Platform Photovoltaics (ETIP PV), urged the solar industry to move beyond compliance checklists and focus on deeper ESG practices.  

The EU is an important market for the global solar industry as it sources its products mostly from abroad, and usually without import limitations, unlike the US or India, but ESG is much higher on the agenda there. Referring to the various existing and upcoming regulations within the EU for ESG, sustainability, and circular economy, Passaro stressed the need for the solar industry to become aware of the new reality. Under the EU Green Deal, sustainability is a legal requirement in finance and operations, and companies are liable for all impacts across the entire supply chain. However, the situation is becoming somewhat blurrier as there are efforts to water down the rather stringent major ESG directives. 

He noted that PFAS restrictions, cybersecurity oversight, and the EU’s forced-labor laws are reshaping ESG priorities and driving greater accountability across the solar sector. 

Passaro called for the need to tie ESG with bankability across all levels – financial, social, technical, and support. He shared some learnings from several PV System ESG Audits that he recommended for companies to enhance their ESG profile, while emphasizing stronger ESG accountability for those operating in the domain.  

Beyond permits, he urged independent biodiversity monitoring and site management. Components should be reused before recycling, with clear decommissioning plans and full system-level carbon impact reporting. He also stressed auditing subcontractor labor, ensuring community engagement, and enforcing safety standards.  

Promoting Sustainable Solar Development in Spain 

Martín Behar, Director of Research & Environment at the Spanish Solar Photovoltaic Association (UNEF), presented the organization’s work on sustainability and biodiversity in the PV sector.  

Behar spoke about the Environmental Seal of Excellence developed by UNEF that now covers more than 5.6 GW of solar plants across Spain. Open to all developers, this seal recognizes projects with long-term positive social, environmental, and economic impacts. The benefits could be at the socioeconomic level, such as job creation, higher property values, and local tax growth, or at the environmental level, bringing in biodiversity protection with various applications. He shared studies that show solar sites also support birdlife, including protected species.  

Taking a step further, Behar said that the UNEF has now introduced a similar Seal of Excellence for battery storage, with added safety criteria. The seal also covers safety and circularity to promote sustainability throughout the entire renewable energy value chain. 

Recycling: Challenge and Opportunity Combined 

Addressing the topic of end-of-life, Janett Schmelzer, Head of Research & Development at solar panel recycling company SOLAR MATERIALS, highlighted that the number of end-of-life (EOL) PV modules is expected to increase 20-fold by 2030 globally, marking the first major recycling wave.  

While Europe leads with comprehensive regulations in terms of PV recycling, Asia’s fast-growing recycling sector still prioritizes volume over material purity, she pointed out. The US still has no federal PV recycling law. This is where Europe enjoys an advantage over its peers since recycling is not just good for the environment, but also an economic opportunity for the continent to cash on. 

Building strong recycling systems is both a global challenge and a chance for Europe to become a technology leader while saving valuable materials like silver and silicon, stressed Schmelzer. 

SOLAR MATERIALS expects to expand its annual recycling capacity from 7,000 to 35,000 tons by 2026, opening its first site in Italy, which she says will set a benchmark for Europe. However, she stressed the need for better recycling techniques for reuse while also figuring out what to do with the recovered plastics that make up 10% of module recovery by weight. 

The recovered EVA and backsheets are currently ‘worthless’, while there is a need to improve silicon purity to achieve solar-grade silicon with (>6N = 99,9999 % Si) for reuse in high-efficiency cells. This is a challenge for the whole PV industry, she added.  

Sustainability is increasingly key for access to solar financing 

Speaking about sustainability requirements for solar financing at the conference, International Finance Corporation (IFC)/World Bank Principal Risk Officer Guido Agostinelli outlined the IFC Performance Standards as the global benchmark for managing environmental and social risks in solar projects.  

He emphasized that sustainability is essential for responsible solar financing and a key to long-term value for communities, investors, and the planet. Solar PV companies need to be mindful of the fact that supply chain management systems are now central to the risk management process. Developers are then expected to work with key equipment suppliers to identify and mitigate these risks.  

Agostinelli urged developers to apply the ‘avoid, minimize, compensate’ hierarchy, conduct rigorous due diligence on E&S risks, and ensure transparent, traceable supply chains. 

Panel Discussion  

The conference wrapped up with an insightful panel discussion moderated by TaiyangNews Managing Director Michael Schmela. The speakers reflected on how far the solar sector has advanced in terms of sustainability while discussing ways forward. Jochen Hauff from Think Resiliency and the Global Solar Council urged industry leadership to go beyond politics, stressing value creation and biodiversity. Guido Agostinelli from IFC/World Bank emphasized updating standards and the vital role of financiers where policy lags. Lin Sun from JinkoSolar highlighted the Global Solar Sustainability Alliance (GSSA) as an interesting initiative among Chinese suppliers – complementary to the SSI – aimed at promoting sustainability within the Chinese solar supply chain. She noted that JinkoSolar is part of this alliance, which seeks to engage broader industry players, including those in glass and inverter manufacturing, and could help achieve greater global harmonization in sustainability efforts. All the panelists agreed that collaboration, transparent reporting, and stronger dialogue will keep driving solar’s sustainability momentum forward.  

All the presentations and panel recordings are now available on the TaiyangNews YouTube Channel. TaiyangNews also ran a live blog during the conference, available here. 

On October 17, 2025, TaiyangNews will host the Virtual Conference on Advanced Solar Module Applications 2025, where the discussion will revolve around design innovation in modules, beyond the traditional applications. Registrations for the event are free and can be done here.