At the moment, only 17 per cent of Australia’s solar panels are recycled at the end of their life for the valuable minerals they contain, such as copper, silver and aluminium. Photo: SMART ENERGY COUNCIL
ENVIRONMENTAL advocates have welcomed the federal government’s introduction of a national pilot to recycle solar panels.
Australia leads the world in rooftop solar uptake, with more than one in three Australian homes now having solar panels installed.
At present, however, less than one in five of those panels (17 per cent) are recycled at the end of their life for the valuable minerals they contain, such as copper, silver and aluminium.
On Friday last week, the government announced it would spend $24.7 million over three years on the pilot and establish up to 100 collection sites across Australia.
The federal government cited a report from the Productivity Commission into circularity in Australia’s economy, also released on Friday last week, that recommended the establishment of a solar panel recycling scheme.
This report found there was scope to boost Australia’s circular economy through better co-ordination, regulatory design and innovation, especially for high-value, high-risk waste streams such as solar panels
Smart Energy Council (SEC) chief executive officer John Grimes welcomed the announcement as further evidence of the federal government’s commitment to supporting renewables.
“Australians love solar, because it gives them energy independence and the lowest cost source of power generation. But the 10 million who go to sleep beneath panels each night want to know that they’ll be recycled once they reach end of life, or are upgraded,” he said.
“Four million panels are being decommissioned each year, but only a fraction of those are being recycled. We know the government wants to see that change and we support it – the industry stands ready to fix the problem.
“A national solar stewardship scheme will drive innovation, new domestic industries, manufacturing, and jobs. All principles that underpin the Albanese government’s Future Made in Australia policy agenda.”
SEC executive general manager of sustainability Darren Johannesen said the recovery of solar PV panels represented a $7 billion opportunity to bolster the nation’s critical mineral resource security.
“Solar panels are not a waste problem, rather a critical resource.
“They contain precious materials like silver, copper, aluminium, silicon and high grade glass, commodities critical to our clean energy shift.
“The IEA is predicting a 30 per cent per cent shortfall in the supply of copper from primary sources by 2035 – urban mining provides the key solution to this looming supply problem.”
He said implementing a national stewardship scheme, which the SEC hoped and expected would follow the pilot, would trigger an urban mining boom and a new wave of smart energy investment in jobs and growth.
The SEC says it has been advocating for a decade about such a scheme, with more than 60 organisations signing a joint statement in September 2025.
“Recycling solar panels and reusing the essential components will reduce costs and make our economy more productive and efficient,” Treasurer Jim Chalmers said.
“This means less waste and more access to valuable metals.
“Recycling solar panels and reusing our critical resources is an important part of the energy transformation and that’s what this is all about.”
To read the Productivity Commission’s report, head to pc.gov.au/inquiries-and-research/circular-economy/report
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