Australia to Pilot National Solar Panel Recycling Scheme with $24.7 Million Investment

The Albanese Labor Government has announced a national pilot program to recycle end-of-life solar panels, aiming to cut landfill waste, recover valuable minerals and support Australia’s transition to cleaner and cheaper energy.

Under the initiative, the government will invest $24.7 million over three years to establish a national solar panel recycling pilot, including the rollout of up to 100 collection sites across the country. The program is intended to build a long-term, sustainable solution for managing the growing volume of retired solar panels.

The announcement follows the release of a new report by the Productivity Commission on circularity in Australia’s economy, which specifically recommended the establishment of a solar panel recycling scheme. The report highlighted opportunities to strengthen Australia’s circular economy through improved coordination, better regulatory design and innovation—particularly for high-value, high-risk waste streams such as solar panels.

Australia currently leads the world in rooftop solar uptake, with more than one in three homes now fitted with solar panels. These panels contain valuable and strategic materials, including copper, silver and aluminium, which can be recovered and reused to support the renewable energy transition.

Despite this potential, only 17 per cent of solar panels are currently recycled. The Productivity Commission estimates that increasing recycling rates could unlock up to $7.3 billion in economic and environmental benefits through reduced waste and greater material reuse.

The government said it would consider the findings of the Productivity Commission inquiry and work closely with state and territory governments to improve national recycling and resource recovery systems.

Treasurer Jim Chalmers said recycling solar panels would lower costs and improve productivity across the economy. “Recycling solar panels and reusing the essential components will reduce costs and make our economy more productive and efficient,” he said, adding that the initiative would deliver “less waste and more access to valuable metals.”

Minister for Climate Change and Energy Chris Bowen said the pilot marked an important step in maximising the benefits of Australia’s energy transition. “Not only do solar panels create renewable energy—now they’ll be renewable themselves,” he said, noting the program’s potential to create local jobs and attract further investment into Australia’s solar industry.

Minister for the Environment and Water Murray Watt said most end-of-life solar panels are currently stockpiled, sent to landfill or exported for reuse. “These materials are too valuable to throw out,” he said, adding that increased recycling would help reduce landfill volumes while supporting the clean energy transition and protecting the natural environment.

The pilot program is expected to inform the design of a future nationwide recycling framework as Australia prepares for a sharp rise in solar panel waste over the coming decades.