Solar Recycling Gains Political Attention: Is It Too Late for Investors?
During her recent speech at the Australian Clean Energy Summit in Sydney, New South Wales Energy Minister Penny Sharpe expressed her dual role as both energy and environment minister, stating, “one of the great things about also being the environment minister is that I get to boss people around on that one as well.” This sentiment was put into action last week when she brought the pressing issue of solar panel stewardship to the forefront of the upcoming Energy and Climate Change Ministerial Council meeting scheduled for August 15.
The meeting’s communique, released on Friday, highlighted the need for mandated stewardship arrangements to address the waste generated as solar panels reach the end of their lifespan. It noted that this initiative could also foster the growth of a domestic re-manufacturing industry. The communique stated, “Ministers also discussed the need for mandated stewardship arrangements to proactively manage the waste challenge arising as solar panels reach their end-of-life and how this could be leveraged to grow a domestic re-manufacturing industry.”
Collaboration for a National Stewardship Scheme
All ministers acknowledged the importance of reusing critical minerals from solar panels. They agreed that New South Wales would collaborate with other states to develop a regulatory impact statement, while the Commonwealth would work alongside the states to establish a national product stewardship scheme. The Commonwealth and New South Wales will explore various models for this scheme, assessing both Commonwealth and state-based approaches, with a commitment to report on progress by early 2026.
Penny Sharpe’s proactive approach is commendable, especially given the urgent need for a national scheme that mandates the recycling or reuse of solar panels. The increasing number of discarded panels from solar-enthusiastic Australian households, spurred by the Cheaper Home Batteries rebate, underscores the necessity for action.
Industry Concerns Over Delays
The Smart Energy Council (SEC) has voiced concerns regarding the lack of action from federal governments over the past decade, which has left the nascent photovoltaic (PV) recycling industry on the brink of collapse. “Time’s up,” the SEC declared on LinkedIn, highlighting that despite the federal government recognising the issue of solar PV waste, no substantial measures have been implemented to address it.
The SEC praised the New South Wales government for urging federal action to initiate a mandatory national stewardship scheme, warning that continued delays could lead to investor fatigue within the recycling sector. “There is a very real risk that if governments continue to delay on this issue, the recycling industry may no longer exist due to investor fatigue,” they stated.
Investor Fatigue and Urgent Action Needed
Darren Johannesen, SEC’s executive general manager of sustainability, has been vocal about the growing concerns among investors. He explained in a recent podcast that many are becoming disillusioned after investing millions in recycling plants, expecting a clear policy framework that has yet to materialise. Johannesen emphasised the urgency of addressing the rapidly increasing PV waste stream and the risk of investors pausing their commitments while awaiting regulatory clarity.
He pointed to a critical minerals report from the International Energy Agency, which predicts a 30% global shortfall in copper by 2040, stressing that a robust waste recovery system is essential to bridge this gap. Johannesen expressed frustration that, despite significant policy focus on solar research and development, recycling and reusing panels have not been recognised as a resource solution.
Call for Nationwide Pilot Program
The SEC is advocating for an immediate nationwide pilot programme for reuse and recycling ahead of the development of a Regulatory Impact Statement for a mandatory national stewardship scheme. Johannesen explained that pilots are crucial for ensuring that the national programme is informed by evidence rather than assumptions.
He shared insights from Queensland’s pilot project, which has provided valuable lessons on logistics and consolidation of modules. However, the SEC stresses that time is of the essence, as discarded panels continue to accumulate in landfills and backyards, highlighting the need for a viable solution.
According to SEC data, approximately 1.2 million solar modules are decommissioned annually in Queensland, with national estimates ranging from 4 to 4.5 million. With the federal home battery rebate potentially leading to the replacement of older rooftop systems, these figures could surge, resulting in an additional 7.5 to 20 million modules being decommissioned each year.
Johannesen reiterated the importance of swift action on a national scheme, stating, “So it’s a lot of modules that will be de-installed, and this is why, getting back to pilots, why pilots are important. And critically, it’s why we need action on a national scheme.”
