The silicon shortage has caused many solar energy observers to question the industry’s ability to sustain its growth, especially with increasing orders for PV modules around the world adding to the supply-demand problem.

SolarWorld subsidiary Deutsche Solar will establish a second facility at its Freiberg location for upgrading used silicon, using new technologies that have increased the scope and economic viability of silicon recycling.

“With the new investments we will double our previous upgrading capacity thus keeping pace with the expansion of the capacity in wafer production," Deutsche Solar chief executive Peter Woditsch said.

The Solar Material division is responsible for the company's internal raw materials activities that also include recycling. Woditsch said the investment volume for the new production hall amounts to about €5 million.

Solar Material division manager Dr Karsten Wambach said the company would source raw materials from the waste of its own PV production facility and external purchase of silicon materials for recycling.

Wambach said the company planned to offer its silicon recycling technology as a service for other companies at a later stage.