Announced this week, the Albanese Government will invest $24.7 million over three years to establish a national pilot solar panel recycling program, including up to 100 collection sites across the country to support the recycling of end-of-life solar panels.
The target of the national solar panel recycling program is to reduce landfill through the recovery of valuable materials to strengthen Australia’s circular economy for clean energy technologies.
The initiative comes as Australia continues to lead the world in rooftop solar uptake, with more than one in three homes now equipped with solar photovoltaic (PV) systems. While this has delivered substantial emissions reductions and lower power bills, the growing volume of ageing and decommissioned panels is creating a new waste and resource-recovery challenge.
The pilot program responds directly to findings from the Productivity Commission’s latest report into the circular economy, which highlighted solar panels as a high-value and high-risk waste stream, recommending the establishment of a coordinated national recycling scheme. The report found significant scope to improve outcomes through better coordination, regulatory design and innovation.
Solar panels contain a range of valuable and strategically important materials, including copper, silver and aluminium, which can be recovered and reused in the clean energy supply chain. However, only around 17 per cent of solar panels in Australia are currently recycled, with most either stockpiled, sent to landfill or exported for reuse.
The Federal Government estimates that lifting recycling rates could unlock up to $7.3 billion in economic and environmental benefits through reduced waste and greater material recovery.
Treasurer Jim Chalmers share that improving resource recovery from solar panels would support both productivity and the energy transition.
“Recycling solar panels and reusing essential components will reduce costs and make our economy more productive and efficient,” he said.
“This means less waste and more access to valuable metals.”
Minister for Climate Change and Energy Chris Bowen said the program was designed to ensure Australia maximises the long-term value of its solar rollout.
“Aussie households have embraced cleaner, cheaper solar energy, with one in three of us now benefitting from solar panels on our roofs,” he said.
“This pilot is an important step in ensuring we get the most out of our energy transition. Not only do solar panels create renewable energy, now they’ll be renewable themselves.”
He added that expanding domestic recycling capability could also support local jobs and investment across the solar manufacturing and processing value chain.
Minister for the Environment and Water Murray Watt said the materials used in solar panels were too valuable to be wasted.
“Only a small percentage of end-of-life solar panels are currently recovered for recycling, with most either stockpiled, dumped in landfill or exported for reuse,” he said.
“These materials can be repurposed to support the clean energy transition and help reduce what we send to landfill.”
The Federal Government said it will consider the Productivity Commission’s recommendations in more detail and work with state and territory governments to develop a long-term, nationally consistent approach to solar panel recycling beyond the pilot phase.
To access the official Government media release, click here.