The Australian federal government has announced AU$24.7 million (US$16.56 million) in funding over three years to establish a National Solar Panel Recycling Pilot programme, aimed at addressing the growing challenge of end-of-life solar PV module management.
The initiative was jointly announced by Treasurer Jim Chalmers, Minister for Climate Change and Energy Chris Bowen, and Minister for the Environment and Water Murray Watt. It will support the rollout of up to 100 pilot solar panel collection sites across the country, forming the foundation of a future national recycling framework.
According to government figures, only around 17% of solar modules are currently recycled in Australia. The federal government estimates that improving recycling and material recovery could unlock up to AU$7.3 billion in economic and environmental benefits through reduced waste and increased reuse of valuable materials.
The pilot programme aims to develop a sustainable, nationwide solution for managing the increasing volume of retired solar modules as Australia’s rapidly expanding solar fleet reaches maturity.
Plans for a nationally mandated solar PV reuse and recycling scheme first emerged in August last year, when federal, state and territory governments confirmed their intention to work towards a coordinated national approach.
The latest announcement follows sustained industry advocacy, including a joint statement from more than 60 organisations calling for mandatory product stewardship for solar PV modules.
Nigel Morris, chief strategy officer at the Smart Energy Council, welcomed the funding decision, describing it as “huge and exciting news” in a LinkedIn post. He said the move reflects unprecedented collaboration across industry and civil society and highlights the impact of coordinated advocacy efforts.
Morris noted that the outcome represents ongoing advocacy on behalf of Smart Energy Council members, including installers, recyclers, manufacturers and participants across the wider renewable energy supply chain.
The federal programme builds on existing state-level initiatives, particularly in Queensland, which has taken a leading role in developing solar recycling policies and infrastructure.
The announcement also aligns with growing recognition of the importance of PV module recycling to Australia’s clean energy transition. Solar panels contain valuable materials such as copper, silver and aluminium, which can be recovered and reused to support continued renewable energy deployment while reducing reliance on virgin resource extraction.
Minister Bowen emphasised the programme’s dual benefits, noting that effective recycling can ensure solar panels become “renewable energy themselves,” while also creating local jobs and supporting domestic manufacturing capability.
The three-year pilot period will enable data collection, policy development and programme refinement before consideration of a permanent national scheme. The initiative will be delivered in collaboration with state and territory governments and will take into account findings from the Productivity Commission’s inquiry into Australia’s circular economy opportunities.
Morris added that a nationally coordinated solar module stewardship scheme would provide long-term business certainty, protect responsible operators and deliver lasting environmental and economic benefits across Australia’s smart energy sector.
