Circular business model experimentation in the solar industry
The current linear economic model is unsustainable and a systematic shift towards circular economy is urgently needed. The photovoltaic (PV) industry is also largely organised on a linear basis, which helps to implement the energy transition quickly, but will create new challenges, such as enormous amounts of waste. Therefore, the PV industry needs new, more sustainable business models (BM) in the realm of circularity. However, the transformation of BMs and ecosystems is a complex process. Experimenting with BMs can facilitate this process, but in the case of circular business models (CBM), they often barely make it to the market. This is particularly the case when cross-organizational collaboration in ecosystems is required. This paper uses a case study method with an action research approach. Together with eight organizations from the Swiss PV industry the authors engage in the project “Swiss-PV-Circle”, which aims to experiment with CBMs in pilot projects focussing on reuse of PV modules. First results show (1) the technological feasibility, including necessary skills and partner networks, (2) the high circularity potential to slowing the loop, and (3) the niche desirability for certain customer segments. In terms of viability, however, current market prices for new PV modules, make entry into reuse BM less promising at present. The upcoming pilot projects shall experiment with other than purely financial value proposition aspects to ensure the viability. This paper contributes, first, as it empirically enriches the PV industry literature on circular strategies, and second, as it theoretically contributes to the CBM experimentation research.
NYFFENEGGER Roger;
BALDASSARRE Brian;
BOCKEN Nancy;
GRÖSSER Stefan;
2025-05-05
Mondragon Unibertsitatea
JRC137209
https://hdl.handle.net/20.500.11984/6496,
10.48764/y4ht-6s44,
https://publications.jrc.ec.europa.eu/repository/handle/JRC137209,
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