What Happens When Your Solar or Battery Reaches End-of-Life in NSW?

It is a bigger issue than many people realise. About one in three Australian households already has rooftop solar, and the Federal Government says Australia could generate around one million tonnes of solar panel waste by 2035.

In NSW alone, waste solar PV panels and battery systems are forecast to rise sharply by 2035, which is why recycling and end-of-life planning is becoming such an important part of owning solar.

The good news is that end-of-life does not always mean your whole system has to go. In many homes, only one part of the system is failing. It might be an ageing inverter, a battery that is no longer storing enough usable energy, or older panels that are producing less than they should. The right next step depends on what has failed, how old the system is, and whether an upgrade now makes more financial sense than a patch-up repair.

One of the biggest mistakes homeowners make is assuming that if one solar component is failing, the whole system is finished.

That is not always true.

Solar panels, inverters and batteries all age differently. Panels may still be generating, but at lower output. Inverters often wear out earlier than panels. Batteries can lose usable capacity over time or become less practical for the home’s changing energy needs. That is why the first step should be a proper inspection by a qualified solar professional — not guessing, and definitely not removing anything yourself.

Solar panels

Solar panels can reach end-of-life because of age, storm damage, delamination, hotspots, physical breakage, water ingress, or a major drop in performance. In some cases, they are still technically working, but the output has fallen enough that replacing them makes more sense.

Inverter

For many systems, the inverter is the first major component to fail. If the inverter is no longer reliable, you may be able to replace it without replacing every panel on the roof.

Battery

A battery is usually considered near end-of-life when it no longer stores enough usable energy, shows recurring faults, falls outside warranty support, or has developed a safety issue. If a battery is swollen, leaking, cracked, punctured or heat-damaged, it needs urgent professional handling. Fire and Rescue NSW says lithium-ion batteries must never be placed in household garbage or recycling bins because they can cause fires during collection, transport and processing.

This is where things are changing quickly.

The Commonwealth’s National Solar Panel Recycling Pilot was announced in January 2026. It is proposed to begin mid-2026 and aims to collect and recycle up to 250,000 panels from around 100 sites to help build a longer-term national solution.

At the NSW level, recycling infrastructure is also expanding. The NSW EPA-backed Circular Solar program was designed to prepare for the rising volume of end-of-life solar panels and batteries, and NSW now has dedicated recycling projects and facilities in operation. A major solar panel recycling facility opened at Bankstown Airport in October 2025 with capacity to process up to 6,000 tonnes of panels per year, while another facility in Parkes has also ramped up processing. The Bankstown facility is expected to divert about 200,000 panels from landfill, and EPA reporting says up to 90% of a panel can be recovered by weight.

That means when old solar panels are removed in NSW, they no longer have to be treated as simple waste. Depending on their condition, they may go through one of three pathways:

1. Reuse

Some older panels are still serviceable. NSW’s Circular Solar program has funded projects that test decommissioned panels and divert suitable ones into second-life applications rather than landfill.

2. Recycling

Panels that are no longer suitable for reuse can be processed so materials such as glass, aluminium and other recoverable components can be separated and recovered. NSW-backed facilities are specifically being built around this pathway.

3. Replacement as part of a system upgrade

Sometimes old panels are removed because the homeowner is upgrading to a more efficient system, adding a battery, or redesigning the setup to better match current household usage.

Batteries are a different story from panels because safety risks are much higher.

NSW now has a mandatory battery product stewardship scheme under the Product Lifecycle Responsibility Regulation 2026, but the current regulated scope is focused on small and removable batteries under 5kg, plus batteries used in e-bikes and e-scooters. The regulation is proposed to commence on 1 October 2026.

That matters because many home solar batteries are much larger, fixed in place, and not something you simply drop into a public collection point.

In practice, most wall-mounted residential solar batteries will need to be handled through a professional decommissioning and recycling pathway, usually involving the installer, manufacturer, supplier or a specialist recycler. That is also the safest approach, especially if the battery has been damaged, overheated or exposed to water. This is a practical inference from the current NSW and B-cycle guidance, which is mainly built around smaller batteries, removable batteries, embedded consumer products, and specific public drop-off streams.

No.

Old batteries should never go in household waste or recycling bins. Fire and Rescue NSW is very clear on that point because of the fire risk. Small, undamaged batteries can go to approved recycling drop-off points, but damaged batteries need extra care, and larger household batteries have different disposal pathways.

Solar panels also should not be dumped, stockpiled or treated like ordinary household waste. NSW has been building dedicated recovery and recycling capacity specifically because the end-of-life volume is growing so fast.

Sometimes, but not always.

According to the NSW EPA, large removable household batteries between 5kg and 20kg can be taken to a Community Recycling Centre or Household Chemical CleanOut event for free disposal. NSW also has an embedded batteries trial running through selected Community Recycling Centres until September 2026, and there are currently 34 participating CRCs across the state.

But that does not mean every home solar battery is suitable for a DIY drop-off. Fixed residential battery systems are a separate category from loose household batteries, which is exactly why homeowners should get advice before moving or removing anything.

That depends on the age and condition of the system.

Sometimes the smartest move is a simple repair. Sometimes it is a like-for-like replacement of a failed inverter or battery. And sometimes the better long-term decision is a full upgrade — especially if your current system is undersized, your energy usage has changed, or you now want better blackout protection, EV charging support or stronger battery performance.

A good inspection should answer:

• What part of the system is actually failing?
• Is the equipment still safe?
• Is it worth repairing?
• Will replacement parts still make sense for the system?
• Would a newer system deliver far better value over the next 10 to 15 years?

End-of-life solar and battery equipment should never be treated as a DIY removal job.

There are electrical safety risks, roof risks, fire risks and disposal compliance issues to think about. On top of that, the best outcome is not just “get rid of the old system” — it is making sure usable components are identified properly, recyclable materials go into the right stream, and your next system is designed around how your home uses power today.

If your solar panels, inverter or battery are nearing end-of-life, MPV Solar can help you understand whether it is smarter to repair, replace, recycle or upgrade.