Recycling Companies Urge National Solar Stewardship Levy in Canberra

A delegation comprising leaders from the renewable energy sector and representatives from solar recycling firms has travelled to Canberra this week to urge the Albanese government to establish a mandatory national scheme for the reuse and recycling of photovoltaic (PV) panels.

Headed by the Smart Energy Council (SEC), the group aims to present a joint statement advocating for the implementation of a solar stewardship scheme within the current parliamentary term, alongside a funded pilot programme to help shape the scheme and encourage investment.

Proposed Stewardship Levy

The proposed initiative includes a mandatory stewardship levy on all new solar panels, whether imported or manufactured domestically. This levy would contribute to a central fund designed to facilitate the collection, reuse, and recycling of decommissioned panels efficiently.

This levy, which would be incorporated into the price of the panels, is primarily intended to cover the substantial costs associated with transporting panels from their end-of-life locations to recycling facilities, which far exceed the expenses of disposing of them in landfills. The SEC estimates that the levy could be set at approximately $10 per panel, although the precise amount will be determined through the pilot programme. They emphasise that this cost will be significantly lower than the up to $50 per panel charged at some waste disposal sites.

Addressing the Waste Crisis

The joint statement presented to federal parliament highlights a critical flaw in Australia’s rooftop solar success story, warning that it could jeopardise the principles of the renewable energy revolution by failing to incorporate circular economy practices.

The SEC-led delegation is also seeking meetings with Environment Minister Murray Watt and Federal Treasurer Jim Chalmers to stress the urgency of addressing the escalating crisis of solar panel waste, which poses serious environmental and social challenges.

The urgency of the situation is underscored by a recent increase in the number of panels being removed from rooftops across Australia, spurred by the federal government’s Cheaper Home Batteries rebate, which encourages upgrades to rooftop PV systems in conjunction with discounted battery installations.

Impact of Export Restrictions

Compounding the issue is the fact that, until October of last year, Australia exported up to 80% of its decommissioned solar panels for reuse. This practice came to an abrupt halt due to the rapid decline in the prices of new panels, resulting in a significant waste stream with no viable disposal options.

SEC chief John Grimes notes that of the millions of solar panels decommissioned annually, fewer than 5% are currently recycled. “This is not due to a lack of knowledge; we can recover over 95% of the valuable resources in these modules. The failure lies with successive governments not establishing a sustainable stewardship ecosystem that encompasses design, reuse, recycling, and remanufacture,” he explains.

Challenges for Recycling Companies

Emerging PV recycling companies, such as Queensland-based Pan Pacific, which contributed to the solar stewardship pilot conducted by the SEC for 2024-25, have made significant investments based on the expectation of a national scheme that has yet to materialise.

The joint statement warns that “the recycling industry is on the brink.” It highlights that Australia’s recycling sector has invested in advanced technology capable of recovering over 95% of materials, but it now faces the risk of decline. “Without a consistent and reliable supply of panels, which this pilot would ensure, recyclers cannot achieve economies of scale. This could lead to closures, resulting in the permanent loss of jobs, local capabilities, and investor confidence,” it states.

Economic and Resource Recovery Potential

The SEC argues that the greatest risk lies in overlooking the substantial economic and resource recovery opportunities that PV reuse and recycling offer. Over 95% of a solar panel is recyclable and contains valuable materials such as aluminium, glass, copper, silver, and silicon, all of which can be recovered and reused.

Moreover, the SEC estimates that approximately one-third of solar panels could be reused rather than discarded, potentially contributing to an additional 24 gigawatts of energy by 2040, enough to power six million homes annually.