Australia's Solar Waste: A Growing Problem

Australia has long been a global leader in the adoption of solar energy, with one of the highest per capita rates of rooftop solar installations worldwide. Solar power has become a cornerstone in the nation's commitment to sustainability, contributing significantly to reducing its carbon footprint and reliance on fossil fuels. However, as solar panels reach the end of their lifespan, the issue of solar panel waste is rapidly emerging as a significant environmental challenge that could escalate in the coming decades.

The Growing Problem

The rapid increase in the adoption of solar energy, particularly residential installations, has led to the inevitable question: what happens to these panels once they are no longer functioning efficiently? Solar panels typically last between 20 to 30 years, after which their efficiency diminishes, making them economically unfeasible for continued use, especially in large-scale utility projects. This issue is already beginning to surface, with waste volumes from decommissioned solar panels expected to rise dramatically in the near future.

Research indicates that the challenge of managing solar panel waste is more immediate than originally anticipated. While earlier forecasts predicted significant volumes of solar panel waste would not materialise until post-2030, studies have revealed that the problem could begin to intensify within the next two to three years. This surge in waste is expected to be concentrated initially in major Australian cities such as Sydney, Melbourne, Brisbane, Perth, and Adelaide. However, by 2030, as large-scale solar systems near the end of their life cycle, the volume of waste will grow at a faster rate in regional and remote areas, posing new challenges in these less densely populated regions.

The Projected Scale of Solar Panel Waste in Australia

The numbers are staggering. This year the cumulative volume of end-of-life solar panels in Australia is projected to reach 280,000 tonnes.

The University of New South Wales, in collaboration with the Australian Centre for Advanced Photovoltaics, conducted a study on the end-of-life management of solar panels in Australia. The study highlights that the cumulative volume of waste from small-scale and large-scale solar projects will reach approximately 685,000 tonnes by 2030, with projections growing to 1.157 million tonnes by 2035. On an annual basis, waste volumes are expected to exceed 50,000 tonnes by 2025, potentially reaching up to 100,000 tonnes per year from 2030 to 2035—equivalent to approximately 1.2 gigawatts of solar capacity. Initially, most of the waste will stem from residential solar installations, but by 2035, large-scale solar farms are projected to contribute a greater share, with their proportion of total waste increasing from 9.8 per cent in 2023 to 22.9 per cent by 2035.

Figure 1: Projected cumulative PV waste in tonnes in Australia from 2022 to 2035, comparison between small and large-scale systems

Source: Scoping Study: Solar Panel End-of-life Management in Australia, March 2024

Where Will the Waste End Up?

One of the primary concerns with this growing volume of solar waste is how it will be handled. If not properly managed, these panels could end up in landfills, contributing to environmental issues. In Queensland, for example, despite the opening of the state’s first solar panel recycling plant in 2024, which can process 240,000 panels annually, an estimated 800,000 panels could still be at risk of ending up in landfill. Similar challenges are emerging in other states, and the need for robust recycling infrastructure is expected to become increasingly urgent.

While solar panels are made of valuable materials like aluminium, glass, silicon, silver, and copper, which can be recovered and recycled, the current methods of recycling are costly and inefficient. Recycling costs range from $500 to $1,000 per tonne, which includes transportation and the processing of materials. However, recycling is often more expensive than simply landfilling the panels—at about $2 per panel compared to $10 to $20 per panel for recycling. This disparity in cost means that many consumers and businesses opt for landfilling, as it is the cheaper option.

The Recycling Landscape in Australia

In Australia, there are two primary methods for recycling solar panels. The first, mechanical delamination, separates panels into bulk materials, which are then sent to existing material recovery factories for further processing. The second method, still in development, involves dedicated full material recovery facilities that are specifically designed for solar panel recycling. These facilities are expected to achieve higher recycling rates and generate greater revenue from recovered materials.

While recycling solar panels is technically possible, the country faces a significant logistical challenge. Australia’s vast size and dispersed population mean that coordinating the collection and transportation of waste from remote regions to recycling facilities will be complex and costly. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) is currently working to redesign the National Television and Computer Recycling Scheme to include solar photovoltaic (PV) systems. This scheme, set to be implemented by the end of 2025, will require solar manufacturers, importers, and all stakeholders in the solar panel supply chain to take responsibility for the end-of-life management of panels, helping to reduce landfill waste and promote recycling.

Turning Waste into a Resource

While the potential scale of the waste issue will be challenging, there is a significant opportunity.  A typical 20kg solar panel contains over $22 worth of recyclable materials, and by 2035, the study found there could be potential to unlock a cumulative material value of $1 billion. The transition to a circular economy, where materials are continuously reused rather than disposed of, is vital to addressing the growing issue of solar waste.

Australia’s approach to solar panel recycling can be expected to need to evolve rapidly to meet the anticipated surge in waste. More innovative recycling solutions, such as local recycling or reuse programs, are likely to be essential to avoid overwhelming landfill capacities. There will be a need to find ways to bring down the cost of recycling. Greater investment in recycling infrastructure and incentives for consumers and businesses to recycle solar panels are considered to be crucial to ensure that valuable materials are recovered and reused either in the production of new panels or other products.

Our Solar Report 2024 considers the emerging waste challenge along with the growth of rooftop installations and residential battery storage. You can read the report here.