Opportunities In Solar Panel Recycling Push

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• End-of-life management of solar panels has become a problem in need of a solution
• At present, Australia has limited processing capabilities for solar panel waste
• NSW to release Regulatory Impact Statement in early 2026
• Companies are positioning to seize opportunities in the emerging recycling industry

By Jason Collins

A visible pressure point in Australia’s energy transition is end-of-life management of solar panels.

Australia’s rapid solar build-out has expanded exponentially in recent years, with more than 4m rooftop systems now in place.

Not to mention, utility-scale projects are ever-expanding, and a growing number of photovoltaic modules are nearing retirement.

With this in mind, it’s unsurprising the Australian Energy Council’s national projections indicate by the end of 2025 the number of discarded solar panels could reach 280,000 tonnes.

This number is expected to rise to an astonishing 685,000 tonnes by 2030. Cumulative waste could exceed one million tonnes by 2035.

These figures are based on modelling that assumes rising installation rates and general replacement cycles, but actual volumes might differ depending on solar panel repair and re-use trends.

Additionally, the hard pill to swallow is recycling rates have not kept pace, with some estimates indicating current recovery is only 10% to 20% globally.

This is the case even though most of a panel’s mass can technically be re-used, with more than $20 worth of materials from a typical 20kg solar panel able to be recycled.

Evidently, there is a gap between technical output and the current outcomes, which has prompted a stronger regulatory response.

It has also positioned several ASX-listed companies to capitalise on opportunities created by rising waste volumes and a more transparent policy framework.

Today’s piece will explore how these companies can benefit in the coming years and what it means for investors.

Rising PV Waste And The Policy Response

In Australia, the problem isn’t only the escalating waste issue as system retirements begin or are soon to start.

The issue is also the lack of dedicated infrastructure to manage these waste volumes.

According to the Australian Centre for Advanced Photovoltaics, Australia has limited processing capabilities for solar panel waste.

In addition, these facilities are only experimental or small-scale at this point in time.

It’s also believed the recommended build-out of new plants through the 2020s and early 2030s is based on forward modelling instead of established national data.

This is because large waste flows haven’t yet materialised at scale, and it highlights the structural gap between projected end-of-life panels and the country’s capacity to handle them.

Policy Shifts

In addition to the rising waste issue, costs also play a significant role.

Recycling solar panels at this time is still more expensive than sending them to a landfill. This predicament has led operators and installers to export solar panels or stockpile them until regulations change.

Moreover, Victoria’s e-waste rules currently prohibit solar panels from landfills. In South Australia and the ACT restrictions are comparable.

Although enforcement of these frameworks is still evolving, compliance varies, which has unfortunately created a fragmented regulatory environment.

It is because of this fragmentation that in August 2025 energy ministers asked NSW to lead work on a national mandatory stewardship scheme, with a Regulatory Impact Statement due in early 2026.

The final design and start date of the scheme remain to be determined.

The aim of stewardship is to create a single framework that governs the recycling, re-use, and collection of solar panels across Australia.

With the national stewardship scheme, policymakers are still finalising how costs will be shared and how re-use will be prioritised, meaning expectations that the scheme will accelerate investment remain forward-looking.

Penny Sharpe, the Minister for Energy and the Environment in NSW, said: “We are proud to be leading the charge to create a unified approach to solar panel waste management and recycling”.

And: “This work builds on the momentum of our nation-leading reform on batteries, and the new legislation already in place in NSW to enable a mandatory product stewardship scheme – ensuring suppliers take responsibility for the safe design, recycling and disposal of their products.”

It’s the hope that the national approach will reduce uncertainty, support consistency in waste flows, and lay the necessary groundwork for ASX companies to participate in and seize opportunities in the emerging recycling industry.

From Policy To Industry: Early PV Recycling Ecosystem

With national policy now moving toward a unified stewardship scheme, investors are beginning to examine where value may emerge along the solar recycling chain.

Today, the clearest concentration lays in silver recovery, which has been demonstrated at the laboratory scale.

The potential reuse of intact silicon wafers is less certain, as no commercial output has yet been shown in Australia. Still, it remains an area of active research that could improve long-term recycling economics.

These dynamics explain why several ASX-listed companies are positioning themselves early. Some are developing chemical processes designed to extract higher-value materials, while others are building footholds in solar panel dismantling, logistics, or metals recovery.

Their prospects differ sharply because most activity remains at the research or early pilot phase.

Eventual outcomes will depend on technology performance and the final design of the national stewardship scheme.

Iondrive Ltd

A low-temperature Deep Eutectic Solvent process is currently being developed by Iondrive ((ION)) to recover high-purity silver and silicon from end-of-life solar cells.

In a November 2025 ASX update, Iondrive announced a new solar recycling program with the University of Adelaide and a UK commercial laboratory, targeting the selective recovery of silver and silicon using its DES technology.

Work is expected to leverage the DES pilot plant currently under construction. The company remains pre-commercial, and results so far are from controlled development programs rather than large-scale operations.

Iondrive CEO Dr Ebbe Dommisse said: “The recycling of end-of-life solar panels has long faced a fundamental market gap — traditional processes cannot efficiently recover and separate high-grade silver and silicon, meaning much of the value is either lost or downcycled”.

“With silver prices at historically strong levels and demand for high-purity silicon rising in advanced applications, this represents both an economic and strategic opportunity. We believe Iondrive’s DES technology is uniquely positioned to close this gap by delivering efficient, scalable recovery of high-grade materials that the market urgently needs.”

With this in mind, Iondrive’s relevance lays in targeting high-value materials that could underpin recycling economics if the national stewardship scheme delivers consistent panel flows.

In addition, for investors, Iondrive offers early exposure to a technology-driven margin opportunity, although the outlook remains speculative until the method proves scalable.

Lithium Universe

Lithium Universe ((LU7)) entered the solar recycling space in 2025 by acquiring rights to Macquarie University’s Microwave Joule Heating and Jet Electrochemical Silver Extraction processes.

Lithium Univer’s company materials suggest it could recover silver while preserving silicon wafers for higher-value use.

Iggy Tan, the Lithium Universe chairman: “I am thrilled about the acquisition of Macquarie University’s Microwave Joule Heating Technology (MJHT) and the opportunity to potentially extract critical metals such as silver from solar panel recycling.”

Tan further went on to underscore the dire need for change and the program: “The need for effective PV recycling has never been greater, with only 15% of panels currently being recycled. The mass accumulation of solar panel waste in landfills is a growing problem, as valuable critical metals like silver, silicon, gallium, and indium are left behind, contributing to both resource depletion and environmental harm. Microwave technology offers a promising solution to these challenges, enabling higher recovery rates and more sustainable recycling processes.”

On these assumptions, it’s clear the investment appeal lays in the long-term waste curve, since significant volumes are expected through the 2030s, which could benefit selective recovery technologies when the national scheme is in place.

Investors should note these capabilities remain at the research stage and have not been demonstrated commercially, so it could be some time before benefits are realised.

Not to mention, progress will depend on policy certainty, successful build-out of pilot systems, and engineering milestones.

Cleanaway Waste Management

Cleanaway Waste Management ((CWY)) is not developing solar-specific recycling technology. Still, it has a national collection network, which gives the company direct access to the stewardship scheme if it mandates regulated panel retrieval.

The company is also actively investing in circular precincts and advanced recovery infrastructure. However, it hasn’t committed to solar dedicated assets.

For Cleanaway, the opportunity lays in volume. If manufacturers and installers are subject to stricter obligations surrounding solar panel recycling, large waste handlers may be contracted.

Handlers like Cleanaway would collect and consolidate panels. In this scenario, any financial uplift would indeed be incremental, but the company’s scale offers investors a lower-risk avenue to participate in the transition.

Sims Ltd

Sims ((SGM)), recognised by Corporate Knights as one of the most sustainable corporations globally, is one of the world’s prominent metals and electronics recyclers.

This company can process wiring, aluminium frames, and other metal components of PV modules, but only once specialist recyclers remove encapsulants and glass.

Given the company can recycle parts of solar panels, there is an incremental financial opportunity tied to broader renewable waste streams.

Sims, on its own, doesn’t have any initiatives for solar panel recycling. Yet, since Sims Lifecycle Services already manages complex e-waste, it can absorb solar equipment as volumes justify expanded lines.

This offers investors diversified, lower-risk exposure to the recycling theme without dependence on early-stage technology execution.

Investment Considerations

It’s evident Australia’s solar recycling landscape is developing, considering the framework environment is being shaped by movements towards coordinated national policy, emerging technologies, and rising waste volumes.

It’s believed the national stewardship scheme should offer a more predictable structure for handling end-of-life PV modules, bringing more consistency to collection and recovery.

However, the outcomes of end-to-end lifecycle recycling will largely depend on the final policy design and the ability of early-stage technologies to scale, since most are still in pilot or research stages. 

In addition, economic outcomes will also depend on policy enforcement and the value of recovered materials such as silver.

For investors, the message is ASX-listed companies are positioning themselves across different parts of the value chain. Most analysts currently treat PV recycling as an optional upside rather than in-model earnings.

It looks like Cleanaway and Sims are offering steadier exposure through existing networks. In contrast, early-stage developers Lithium Universe and Iondrive seem to offer higher-risk positions linked to technological progress.

Each of these companies has a distinct risk profile, but the recurring theme is short-term financial gains will be small to modest.

Yet, in the long term, it seems structural drivers align with broader circular-economy goals.

This may support industry growth as the wave of solar panel retirements fast approaches and the space seems promising overall.

FNArena’s dedicated ESG Focus news section zooms in on matters Environmental, Social & Governance (ESG) that are increasingly guiding investors preferences and decisions globally. For more news updates, past and future: 
https://www.fnarena.com/index.php/financial-news/daily-financial-news/category/esg-focus/

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