Federal and state governments have agreed to develop a mandatory recycling scheme for solar panels to prevent millions from ending up in landfill.
The Smart Energy Council (SEC) estimates four million panels are removed each year, with less than 5% recycled, and solar waste could nearly double to 91,165 tonnes by 2030.
Many households are replacing older systems through the federal battery rebate, adding to the waste problem.
At the Energy and Climate Change Ministerial Council in Sydney, ministers endorsed a NSW-led proposal for a national product stewardship scheme.
NSW is already progressing battery stewardship and will prepare a Regulatory Impact Statement to guide solar panel recycling policy.
More than 95% of a solar panel can be recycled, and around one-third could be reused, potentially delivering 24 GW of energy by 2040.
The SEC has long pushed for a national scheme, running pilots in Queensland after a federal proposal was rejected by the former Coalition government.
Several companies have set up recycling operations, with ongoing research into better extraction technologies.
NSW will report back in early 2026, with the aim of using solar waste to support a domestic re-manufacturing industry.
The initiative has support from unions and regulators, who say stewardship will create jobs, improve community trust, and strengthen social license for renewables.