Solar Recycling Industry Urges Government to Restart Pilot Program by Year-End
The solar recycling sector in Australia is now publicly voicing urgent demands for government intervention as the suspension of the long-awaited pilot programme enters its sixth month. Eight influential companies within the industry are calling for the government to make a firm commitment to kickstart the pilot programme by the end of this year and to utilise its authority to resolve the current deadlock.
In a joint statement, the industry leaders warned, “Without immediate legal and procedural intervention by the Commonwealth, this prolonged procedural delay threatens the financial viability of Australia’s emerging solar recycling sector and risks compounding an environmental crisis.”
The Background of the Recycling Pilot
The Labour government announced a $25.7 million recycling pilot with great enthusiasm in January, which was projected to commence in July. The plan involved establishing 100 collection sites across the country, incentivising all participants—from rooftop installers to large-scale solar farms—to recycle their solar panels instead of discarding, storing, or selling them to illegal exporters.
This year-long pilot is designed to support the development of an ongoing stewardship scheme that aims to address the anticipated 1 million tonnes of solar panels that will require management by 2035 and beyond. However, the initiative came to a standstill in May due to a probity complaint regarding the appointment process for a scheme administrator.
Government Response and Concerns
Since then, speculation has grown regarding the source of the complaint and its motives. The media advisors from the Department of Climate Change, Energy, the Environment and Water (DCCEEW) have repeatedly stated that they cannot act as the issue remains tied up in legal matters. As of now, the department has refrained from responding to inquiries about the pilot’s potential start date, financial assistance for recyclers in limbo, or alternative arrangements for the stockpiled solar panels.
A statement issued to Renew Economy clarified, “The government remains committed to the policy objectives of the National Solar Panel Recycling Pilot. The procurement remains suspended.” Initial hopes that the federal recycling scheme might make progress have dwindled.
Industry Letter and Demands for Action
In August, a letter from representatives of the solar recycling industry was sent to ministers and DCCEEW, which has now been made public. The letter, spearheaded by James Petesic, co-founder of PV Industries, was endorsed by leaders from ReSource, Pac Pacific Recycling, Elecsome, Environmental Solar Recycling Australia, SPR Australia, Second Life Solar, and PV MRF. Notably, the Smart Energy Council, which has actively campaigned for the stewardship scheme, did not sign the letter.
They are urging the government and DCCEEW to establish a binding start date for the pilot by the end of 2026 and to invoke a procurement act that will expedite the administrator selection process by issuing a Public Interest Certificate.
Financial Uncertainty and Industry Challenges
Renew Economy has reported ongoing concerns among recyclers about potential insolvency as investments have been stalled due to regulatory and procurement uncertainties. The joint statement highlighted that “Ongoing regulatory and procurement uncertainty has frozen millions of dollars in planned private sector investment.”
As recyclers continue to bear costs such as leases and compliance expenses, they await the pilot’s launch, which remains in limbo. Troy Rowe, founder of ReSource, expressed to Renew Economy their considerable financial losses while waiting. Furthermore, the statement noted that panel dumping and stockpiling are threatening the industry’s reputation, with approximately 4 million panels each year being diverted from the more costly option of recycling.
Conflicting Perspectives within the Industry
Amidst this turmoil, not everyone in the sector is concerned about the absence of a pilot or stewardship scheme. Lotus Energy founder Anthony Vippond remarked, “We don’t need a stewardship scheme.” He believes that the inherent value in solar panels should negate the necessity for additional levies, paperwork, and bureaucracy. Vippond asserts that legal mandates for recycling and strict penalties for non-compliance would suffice.
His lack of alignment with the majority of the solar recycling industry is evident as he questions the recycling commitments of many companies, suggesting that their contributions may not be as substantial as claimed and thus undermining the effectiveness of a stewardship scheme.
