Waste and Material Reporting for Solar Panel Installation Companies

Solar panel installation SMEs play a vital role in Europe’s energy transition — but the sustainability of their own operations is increasingly under the spotlight. As part of the Corporate Sustainability Reporting Directive (CSRD) ecosystem, larger energy providers and financiers are asking their installation partners to provide data on waste, materials, and recycling.

This guide shows small and medium-sized solar firms how to report under the Voluntary Sustainability Reporting Standard for SMEs (VSME) — focusing on Basic Module B7: Resource Use, Circular Economy and Waste Management. For broader guidance, see what waste categories you must report and the CSRD guide for renewable energy SMEs.

1. Why Waste and Material Reporting Matters for Solar SMEs

Solar projects generate significant material flows — from packaging and cables to old panels and batteries. Reporting these responsibly helps SMEs:

• Prove compliance with environmental laws and waste directives
• Demonstrate responsible sourcing and recycling to clients and investors
• Reduce costs through efficient materials management
• Build credibility in tenders with CSRD-regulated partners

🧭 Relevant CSRD area: ESRS E5 – Resource Use and Circular Economy 💡 SME equivalent: VSME Basic Module B7 – Waste and Resource Use

2. What To Report Under the VSME Standard

According to VSME section B7, SMEs must disclose:

1. Whether circular economy principles are applied (e.g. reuse, repair, recycling)
2. Total annual waste generated, broken down by:
   • Non-hazardous waste (e.g. packaging, metals)
   • Hazardous waste (e.g. batteries, oils)
3. Waste diverted to recycling or reuse
4. Material flows — where significant (e.g. tonnes of solar panels or cables used)

Source: EFRAG VSME Standard, Basic Module B7 (2024)

3. Step-by-Step: How To Track and Report Waste

Step 1 – Identify Waste Streams

List all waste types generated by your projects and operations:

🔧 Tip: The EU Waste Framework Directive (2008/98/EC) defines hazardous waste — check labels and safety data sheets (SDS) for confirmation.

Step 2 – Measure and Record Quantities

Use invoices, weighbridge slips, or collector receipts to record:

• Quantity (kg or tonnes)
• Type (hazardous / non-hazardous)
• Collector or recycler
• Final treatment (recycled / reused / disposed)

Keep transfer notes or waste documentation for at least five years to demonstrate compliance.

Step 3 – Calculate Recycling and Recovery Rates

Recycling rate = (Recycled waste ÷ Total waste generated) × 100

Example: Total waste: 1,350 kg Recycled: 1,230 kg Recycling rate = 91%

Disclose this metric in your sustainability report and highlight improvements each year.

Step 4 – Apply Circular Economy Principles

Under the VSME Standard, describe how your company applies circular practices, such as:

• Reusing returned or undamaged panels
• Working with suppliers offering take-back schemes
• Using recycled packaging or racking materials
• Repairing damaged panels instead of discarding them

Example disclosure:

“SolarRise Ltd applies circular principles by returning all end-of-life panels to certified WEEE recyclers and reusing metal mounting frames when feasible.”

Step 5 – Include Material Flow Data

Solar installation companies handle large quantities of components. Reporting material flows improves transparency and shows efficient resource management.

4. Example: Solar SME Waste and Materials Report (VSME B7)

Company: SolarRise Ltd Sector: Solar Installation and Maintenance Employees: 22 Reporting Year: 2024 Module: Basic (B7 – Waste and Resource Use)

Circular Practices:

• Panels returned under WEEE take-back scheme
• Aluminium mounting systems reused or recycled
• Packaging reused between installation sites

Material Input:

• Installed 18 tonnes of new PV modules
• 3.5 tonnes of recycled aluminium used in racking
• 98% of packaging sourced from recycled material

5. Linking Waste Reporting to CSRD

Under Article 19a of the CSRD, large companies must disclose resource use and waste impacts across their value chains. By following VSME B7, solar SMEs provide their clients with credible, CSRD-compatible data covering:

• Waste generation and recycling
• Circular use of materials
• Compliance with EU waste and WEEE directives

This strengthens supplier relationships and future-proofs your reporting practices.

6. Quick Wins for Solar Installers

7. How to Present Your B7 Data

Include a “Waste and Materials Summary” section in your sustainability report:

“In 2024, SolarRise generated 5.6 tonnes of waste, of which 94% was recycled or reused. The company integrated 3.5 tonnes of recycled aluminium in mounting structures and partnered with certified WEEE recyclers for end-of-life panels.”

Attach supporting evidence:

• Waste transfer notes
• Supplier invoices
• WEEE certificates
• Photographic records of storage areas

Key Terms

• CSRD – Corporate Sustainability Reporting Directive (EU 2022/2464).
• VSME – Voluntary Sustainability Reporting Standard for SMEs (EFRAG 2024).
• Basic Module B7 – Waste and Circular Economy disclosure for SMEs.
• Circular Economy – A system based on reuse, repair, and recycling to reduce waste.
• WEEE – Waste Electrical and Electronic Equipment Directive.
• Hazardous Waste – Waste posing risks to human health or the environment.
• Recycling Rate – Percentage of waste diverted from landfill through recycling or reuse.