Australia Advances National Stewardship Scheme for Solar Panel Recycling

The Commonwealth, state, and territory governments have agreed to progress work on a national product stewardship scheme for solar panels, aimed at managing them responsibly from installation through to end of life.

The agreement was reached at Friday’s Energy and Climate Change Ministerial Council meeting in Sydney, where New South Wales presented a proposal advocating a mandated national scheme to divert solar panels from landfill into recycling and remanufacturing. NSW is already developing a similar program for batteries.

Rising Waste Challenge
Annual solar panel waste in Australia is projected to nearly double within five years, from 59,340 tonnes in 2025 to 91,165 tonnes by 2030. Most of the growth will come from household systems in metropolitan areas, with volumes from large-scale solar farms expected to accelerate after 2030.

Despite many panels being discarded well before the end of their usable life, more than 95% of their materials—such as aluminium, glass, copper, silver, and silicon—are recyclable. The Smart Energy Council estimates around one-third could be reused, potentially contributing 24 gigawatts of energy by 2040, enough to power six million homes annually.

Policy Development
Energy Ministers agreed that NSW will lead preliminary work with other jurisdictions to develop a Regulatory Impact Statement. This will assess options for a mandatory stewardship program that could support the growth of a recycling and reuse industry for solar panels and batteries.

The Commonwealth is also backing research into low-cost recycling technologies through the Australian Renewable Energy Agency (ARENA) to improve feasibility and cost-effectiveness.

Industry and Union Support
NSW Minister for Energy and the Environment Penny Sharpe said the initiative builds on existing reforms:

“This work builds on our nation-leading battery reforms and ensures suppliers take responsibility for the safe design, recycling, and disposal of their products.”

Smart Energy Council CEO John Grimes welcomed the move, noting that four million solar panels are removed from rooftops each year, with less than 5% recycled:

“The time for talk has passed. An immediate national pilot is needed to keep the industry alive and inform the regulatory process.”

Australian Manufacturing Workers’ Union NSW/ACT Secretary Brad Pidgeon highlighted the job creation potential:

“A national stewardship scheme is a major opportunity for Australian jobs. Recycling and remanufacturing panels here means stronger local supply chains instead of shipping materials offshore or losing them as waste.”

Toward a Circular Solar Economy
If implemented, the scheme is expected to create a national framework for recycling and reuse, reducing waste, recovering valuable materials, and generating economic opportunities as Australia accelerates its renewable energy transition.