Australia has announced that it will invest AU$24.7 million over the next three years to launch a national pilot program for solar photovoltaic module recycling. The initiative aims to establish up to 100 demonstration recycling sites nationwide, with the goal of increasing the recycling rate of photovoltaic modules, reducing landfill waste, and promoting the development of a circular economy.
As one of the countries with the highest rooftop solar penetration globally, Australia already has more than one-third of households equipped with solar panels. By the end of 2025, the cumulative installed rooftop solar capacity nationwide is expected to reach 26.8 GW, covering approximately 4.2 million households and small businesses. However, the Productivity Commission of Australia notes that currently only about 17% of decommissioned photovoltaic modules are recycled. Significantly increasing the recycling rate could unlock up to AU$7.3 billion in economic value by reducing waste and recovering valuable and strategic mineral resources such as copper, silver, and aluminum.
Australian Minister for the Environment and Water, Murray Watt, stated that only a very small proportion of retired photovoltaic modules currently enter the recycling system, with most either being stored long-term, landfilled, or exported for reuse. “Photovoltaic modules contain extremely valuable materials that should not be treated as waste. These materials can be reused to support the clean energy transition, reduce waste going to landfills, and improve the natural environment.”
The Productivity Commission believes that by enhancing coordination mechanisms, optimizing regulatory design, and promoting technological innovation, Australia has the potential to significantly boost its circular economy through the construction of a photovoltaic recycling system. The federal government will refer to the Commission’s research findings and collaborate with state and territory governments to refine sustainable solutions. In 2025, the Australian federal government secured support from state and territory governments to advance the establishment of a national product stewardship framework for photovoltaic modules.
According to projections, Australia’s annual photovoltaic module waste is expected to nearly double from 59,340 tonnes in 2025 to 91,165 tonnes by 2030, with the residential sector becoming the primary source. The Smart Energy Council estimates that approximately one-third of decommissioned photovoltaic modules still have reuse potential, which could contribute around 24 GW of energy capacity by 2040.
