NSW Leads on Mandatory Solar Panel Recycling
Australia’s clean energy boom has delivered enormous benefits, from lower household bills to a rapidly expanding renewable energy sector. But it also has created a big criticism and an unintended challenge: what happens when solar panels reach the end of their life? Until now, too many have ended up in landfill. New South Wales has moved to change that by spearheading a national approach that will make solar panel recycling mandatory.
At the Energy and Climate Change Ministerial Council in Sydney earlier this month, (1) NSW presented a paper that secured agreement from state, territory, and federal governments to progress a national stewardship scheme for solar panels. The move follows NSW’s earlier reforms on batteries and marks a step toward managing solar systems responsibly across their full lifecycle.
The Scale of the Problem
Solar panel waste is already mounting. The Smart Energy Council estimates that four million panels are removed from rooftops each year, with less than five per cent currently recycled. Without change, solar waste is projected to rise from 59,340 tonnes in 2025 to more than 91,000 tonnes by 2030.
The federal battery rebate has unintentionally accelerated the issue. Many households are using it as a chance to upgrade to larger, more efficient systems, retiring panels well before their natural end of life. While positive for adoption, it worsens the waste challenge.
Furthermore, while the majority of discarded panels currently come from city rooftops, waste from large-scale solar farms is expected to rise after 2030. Without clear rules, disposal could overwhelm waste systems.
Why Recycling Matters
According to Renew Economy (2), more than 95 per cent of a solar panel is recyclable, containing aluminium, glass, copper, silver, and silicon. Recovering these materials prevents waste, reduces reliance on imports, and supports local manufacturing.
The Smart Energy Council believes up to one-third of panels could be reused, contributing 24 gigawatts of energy by 2040 – enough to power six million homes. Recycling is not just an environmental imperative; it is an economic opportunity.
By keeping valuable materials onshore, remanufacturing panels locally could support jobs in renewable supply chains (3). The Australian Manufacturing Workers’ Union has endorsed the scheme, highlighting the potential for a new domestic industry built around solar waste solutions.
From Talk to Action
The issue has been known for a decade, yet progress has been slow. Pilots have been trialled in Queensland, and a handful of private firms recycle panels, but less than five per cent of waste is processed responsibly.
What has changed is urgency. Four million panels are being removed each year, most still headed for landfill. The NSW-led scheme shifts responsibility back onto suppliers, ensuring safe design, recycling, and disposal are built into product lifecycles.
A Regulatory Impact Statement will now assess options for a national program. Early recommendations are expected in 2026, but the intent is clear: voluntary measures are no longer enough.
What It Means for Investors
For investors, the implications are clear. First, this strengthens the credibility of renewable energy by addressing a key social licence issue. Communities expect panels will not only be built sustainably but also retired responsibly. Companies that fail risk reputational damage and potential penalties.
Second, opportunities are emerging in recycling and remanufacturing. As new technologies are developed and waste volumes rise, firms positioned in this space could see significant growth. Local manufacturing could also benefit as recycled materials feed back into supply chains.
Finally, this fits within a broader shift toward resource circularity. From batteries to solar panels, governments are mandating stewardship schemes that force industries to internalise waste management. Investors who back companies prepared for this shift will be well-placed as circular economy practices become mainstream.
The Bottom Line
NSW’s leadership on mandatory solar panel recycling shouldn’t be ignored. With millions of panels being discarded annually and valuable materials lost to landfill, decisive action is overdue.
For investors, it is both safeguard and opportunity: safeguarding renewable energy’s integrity and creating opportunities in recycling, remanufacturing, and circular technologies. The clean energy revolution has always been about more than generating power. Now it is about closing the loop.
References
NSW Government. NSW leads the way towards national solar and recycling scheme. August 18 2025. https://www.nsw.gov.au/ministerial-releases/nsw-leads-way-towards-national-solar-panel-reuse-and-recycling-scheme
Parkinson G Renew Economy. Recycle and reuse: Mandatory new rules to stop millions of solar PV panels going into landfill. Renew Economy. August 17, 2025. https://reneweconomy.com.au/recycle-and-reuse-mandatory-new-rules-to-stop-millions-of-solar-pv-panels-going-into-landfill/
Kate B. Australian Manufacturing Magazine NSW drives national plan to remanufacture and recycle solar panels. August 18, 2025. https://www.australianmanufacturing.com.au/nsw-drives-national-plan-to-remanufacture-and-recycle-solar-panels/
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