Solar Recycling Industry Faces Layoffs Amid Suspended Pilot Program
The emerging solar panel recycling sector is facing significant challenges, with companies resorting to staff layoffs while waiting for the federal government to resume its halted pilot programme, according to Troy Rowe, founder of ReSource.
The federal Department of Climate Change, Energy, Environment and Water (DCCEEW) paused the initial phase of the pilot in May due to a complaint regarding its administrator procurement process, as reported by Renew Economy.
Investment in Solar Recycling
ReSource is one of several companies that have made substantial investments in facilities, equipment, and workforce aimed at recycling solar panels. Australia is at the forefront globally when it comes to the percentage of households equipped with rooftop solar, boasting over 4.3 million homes with solar installations.
Additionally, the Albanese government’s Cheaper Home Battery programme has seen over 540,000 households joining since its launch in June 2025, leading many to upgrade their aging solar systems.
Increasing Waste and Financial Strain
Rowe expressed concerns about an anticipated surge in waste, stating, “There’s going to be a bigger waste stream than was planned. It’s going to be frighteningly large.” However, the delay of the pilot programme means that prospective recyclers are financially strained, prompting some to reduce their workforce or rethink their investment strategies.
“We’re losing an insane amount of money,” Rowe lamented as ReSource awaits approval for the next phase of the recycling programme. He noted that his company had been one of the largest recipients of government grants, receiving £7 million to bolster its operations in Victoria and New South Wales.
Rowe cautioned, “That £7 million in taxpayer funds should raise concerns. We’re throwing it down the drain,” adding that prolonged delays might force him to shutter the business.
Government Response and Future Prospects
A spokesperson for DCCEEW reassured that the government remains dedicated to the objectives of the National Solar Panel Recycling Pilot. However, the procurement process is still suspended under the Government Procurement (Judicial Review) Act 2018, with no clear timeline for reopening.
According to industry insiders, a solitary complainant may have hindered the process, necessitating a full re-evaluation of the policy by officials.
“Investigate it – but for goodness sake, don’t just stop everything,” Rowe urged.
Upcoming Discussions and Industry Reactions
The final public hearing of the federal house of representatives inquiry into solar panel reuse and recycling in Australia is set to take place next week in Sydney. The Smart Energy Council, which is competing to assist in managing the recycling scheme, is expected to express its frustrations during the session.
Before this, environment ministers from federal, state, and territory governments will convene at Walkabout Creek in Brisbane on Friday, where the stalling of solar recycling is likely to be a key topic of discussion, alongside the Albanese government’s recent decision to abandon plans for a plastic recycling mandate due to cost-of-living pressures—a move that has disappointed the recycling sector.
