Australia Backs Solar Panel Recycling With AU$24.7 Million National Pilot

Australia’s federal government will invest AU$24.7 million over three years to launch a national pilot program aimed at lifting solar panel recycling rates and preparing the country for a surge in end-of-life photovoltaic waste, the government said in a joint announcement.

The funding, unveiled by Treasurer Jim Chalmers alongside Climate Change and Energy Minister Chris Bowen and Environment and Water Minister Murray Watt, will support the rollout of up to 100 collection sites across the country. Officials say the initiative is designed to close a major gap in Australia’s clean energy transition, as large volumes of early-generation solar panels approach retirement.

Australia has one of the highest rates of rooftop solar adoption globally, yet recycling infrastructure has lagged. Government data show that only about 17% of solar modules are currently recycled domestically, with most retired panels sent to landfill or stockpiled. Analysts say this imbalance reflects a policy focus that historically prioritised deployment incentives over end-of-life management, a pattern also seen in other fast-growing solar markets.

Pressure to address the issue has intensified as Australia’s installed solar base ages. Industry estimates cited in government briefing materials suggest that improved recycling and material recovery could unlock up to AU$7.3 billion in long-term economic and environmental benefits through reduced waste, lower reliance on imported raw materials, and new local processing capacity.

The pilot program will test logistics, cost structures and regulatory settings for a nationwide reuse and recycling system. Officials said it will be developed in coordination with state and territory governments and informed by findings from the Productivity Commission’s inquiry into circular economy opportunities. Observers note that the three-year timeframe signals an intent to gather operational data before committing to a permanent, mandatory scheme.

Plans for a national approach were first floated in mid-2025, when federal, state and territory governments agreed in principle to develop a regulated product stewardship framework for solar modules. Since then, more than 60 industry and civil society organisations have publicly called for mandatory stewardship rules, arguing that voluntary measures have failed to keep pace with market growth.

Nigel Morris, chief strategy officer at the Smart Energy Council, said the funding decision reflected sustained industry advocacy and growing political recognition of the issue. Writing on LinkedIn, Morris described the move as a turning point for installers, recyclers and manufacturers seeking clearer long-term rules. Industry groups argue that a national framework would discourage irresponsible disposal practices while giving compliant operators the confidence to invest in domestic recycling capacity.

The federal initiative builds on existing state programs, particularly in Queensland, which has piloted solar recycling trials and policy settings over recent years. Analysts say aligning these efforts under a national model could reduce fragmentation and lower compliance costs for companies operating across multiple jurisdictions.

Solar panels contain recoverable materials such as aluminium, copper and silver, which can be reintroduced into manufacturing supply chains. Minister Bowen said the program would help ensure that solar technology remains consistent with broader circular economy goals, while also supporting regional jobs and local processing industries. Market observers add that domestic recovery of critical materials could become more valuable as global competition for metals intensifies.

Source: DCCEEW

SUNSHINE Spotlight: Australia’s solar boom is entering a new phase, with policymakers betting that early investment in recycling can turn a looming waste challenge into an economic and environmental asset.