As solar panel waste grows, extra installation fee proposed to fund recycling

Australia has a growing pile of old solar panels, and scientists are looking for ways to recycle them. A leading science group is calling for a small fee of about $10 per panel when it is installed to help pay for recycling later. Right now, a national recycling pilot program that was supposed to start in mid-2026 has not yet begun. Experts say the country needs to act soon before the waste problem gets much bigger.

One in three homes in Australia already has rooftop solar panels. About 300,000 solar systems are installed every year. But only 17 percent of old solar panels are actually recycled, according to the Productivity Commission. That means most used panels end up somewhere other than a recycling facility.

The Australian Academy of Technological Sciences and Engineering, known as ATSE, spoke at a government inquiry about the problem. ATSE said a fee of between $10 and $20 per panel at the time of installation could fund a national recycling program. Acting CEO Peter Derbyshire said the plan would shift the cost and responsibility to manufacturers, importers, and customers. This type of plan is called a product stewardship scheme.

The idea is not new. Back in 2017, the federal government listed solar panel recycling as a national priority. In January, Energy Minister Chris Bowen announced a pilot recycling program planned for mid-2026. However, a spokesperson from the Department of Climate Change, Energy, the Environment and Water said the program has not yet been fully set up. The government said it is still committed to making it happen.

Australia produces about 60,000 tonnes of solar panel waste every year. The federal government thinks that number could rise to 90,000 tonnes by 2030. To put that in perspective, Australia generated 27 million tonnes of building and demolition waste and 10 million tonnes of coal ash in 2023–24. So solar panel waste is smaller by comparison, but it is still growing fast.

Not everyone thinks solar panel waste is a huge crisis right now. Professor Andrew Blakers from the Australian National University studies solar energy systems. He pointed out that solar panel waste adds up to only about 5 kilograms per person per year, which is very small compared to other types of waste. He also said that about 90 percent of a solar panel is made of glass, which is a safe and cheap material to deal with.

Professor Blakers explained that a solar panel is similar to a car windscreen because both are made of layered glass. He said both can be crushed and placed in landfill without causing major harm. Even so, many experts believe recycling is still the better long-term choice. That is because panels contain valuable materials like silver and polysilicon that could be reused in the future.

Countries in Europe already have rules about recycling solar panels. Professor Penelope Crossley from the University of Sydney studied recycling programs in more than 100 places around the world. She said European rules make the companies that produce solar panels pay for collecting and recycling them at the end of their life. This means the cost does not fall entirely on the household throwing the panel away.

In Europe, recycling costs around €300 to €500 per tonne, which is roughly $490 to $815 in Australian dollars. But that is not the full cost, because transport and collection add more expenses. Professor Crossley warned that Australia's remote areas make this even harder and more expensive. She said any recycling rule must work not just in big cities like Sydney, but also in small outback towns like Wilcannia.

Some experts say a recycling scheme could also help create what is called a circular economy. That means products and materials are reused and recycled instead of thrown away. Professor Damien Giurco from the University of Melbourne said several products already have stewardship schemes, including TVs, computers, and plastics. He said it makes more sense to collect the recycling fee at installation than to try to charge people when they are getting rid of old panels.

Researchers at the University of Adelaide found that the solar panel recycling industry could be worth up to $950 billion globally by 2060. Professor Jian Zuo, who co-authored that study, said people should stop treating solar panels like disposable products. Professor Crossley added that Australia should consider a user-pays system, since solar subsidies have mostly benefited middle- and high-income earners. She said the most important thing is finding a solution that is both good for the environment and makes economic sense.