Australia will invest AUD 24.7 million over 3 years to set up a national solar panel recycling pilot with up to 100 collection sites
Currently, only 17% of end-of-life solar panels are recycled, despite rooftop solar capacity expanding across more than 4.2 million households and small businesses
Improving solar panel recycling could unlock up to AUD 7.3 billion in value, according to the Productivity Commission report
Australia has announced plans to invest AUD 24.7 million over the next 3 years for solar panel recycling under a national pilot. The scheme envisages the establishment of up to 100 pilot collection sites across the country.
A leading name in the rooftop solar market, more than 1 in 3 Australian homes are equipped with solar panels. At the end of 2025, the country’s cumulative installed rooftop solar panel capacity stood at 26.8 GW across 4.2 million households and small businesses (see Australia’s Cumulative Rooftop Solar Capacity Exceeds 26 GW).
However, as the country’s Productivity Commission report found out, only 17% of solar panels are currently recycled. Increasing this could unlock up to AUD 7.3 billion through reduced waste and reuse of valuable and strategic minerals such as copper, silver, and aluminum.
“Only a small percentage of end-of-life solar panels are currently recovered for recycling with most panels are either stockpiled, dumped in landfill or exported for reuse,” said Australia’s Minister for the Environment and Water, Murray Watt. “But we think solar panels are made up of materials that are too valuable to throw out. These materials can be repurposed to support the clean energy transition and help reduce what we send to landfill, improving out natural environment.”
The commission sees potential in boosting the country’s circular economy through better coordination, regulatory design, and innovation. The government will consider the findings of the commission and work with states and territories to improve sustainable solutions.
The Australian Local Government Association (ALGA) has welcomed the pilot project and pledged support as its President, Mayor Matt Burnett, explained that a national scheme will help manage the current unsustainable pressure on councils. It, however, wants the responsibility to be shared fairly across the supply chain.
“But for this pilot to lead to a long-term national solution, the Federal Government must also progress strong product stewardship arrangements. Manufacturers and importers must share responsibility for the end-of-life management of solar panels so ratepayers aren’t left carrying the cost,” added Burnett.
Earlier in 2025, the federal government secured state and territory government support for a national product stewardship scheme for solar panels.
Australia expects its annual solar panel waste volume to nearly double from 59,340 tonnes in 2025 to 91,165 tonnes in 2030, with a large volume coming from the residential segment. Smart Energy Council believes around 1/3rd of end-of-life solar panels could be reused, contributing up to 24 GW of energy by 2040 (see Australia’s Solar Panel Waste Could Unlock 24 GW By 2040).