In the race to meet ambitious renewable energy targets, Australia has chosen a path of expediency, prioritising rapid deployment over long-term sustainability and national security. While the immediate benefits of this approach are clear—lower emissions, job creation, and international acclaim—the underlying strategy is fraught with significant risks that could undermine Australia’s economic and strategic independence in the years to come.

Relying on Chinese Manufacturing: A Double-Edged Sword

At the heart of Australia’s renewable energy push lies a troubling dependency on Chinese-manufactured solar panels and components. China dominates the global solar industry, producing over 70% of the world’s solar panels, and Australia has eagerly tapped into this low-cost supply chain. However, this reliance comes at a price.

The allure of Chinese production is undeniable—massive economies of scale have driven down costs, making solar energy more affordable for Australian consumers. Yet, this economic benefit masks a deeper vulnerability. By relying so heavily on a single foreign supplier, Australia has ceded control over a critical aspect of its energy future. Should geopolitical tensions escalate, or should China face its own production challenges, Australia could find itself in a precarious position, scrambling for alternatives while its energy transition hangs in the balance.

Missed Opportunities for Domestic Manufacturing

Australia has the potential to develop a robust domestic manufacturing sector for solar panels and related technologies. Such a sector would not only reduce our reliance on imports but also create high-quality jobs, foster innovation, and ensure that the benefits of the renewable energy transition are felt more broadly across the economy.

Yet, instead of investing in this long-term vision, the current strategy has favoured the short-term gains of cheap imports. The lack of a coordinated push for domestic manufacturing means that Australia is missing out on an opportunity to become a leader in renewable energy production, rather than merely a consumer of foreign-made technology.

The Neglect of Resource Recovery: An Environmental and Economic Oversight

Equally concerning is the lack of focus on end-of-life resource recovery. As Australia ramps up its installation of solar panels, the issue of what happens to these panels at the end of their useful life is becoming increasingly urgent. Without a robust recycling industry, we risk creating a new environmental problem in the form of solar panel waste—an issue that will only grow as the first generation of panels reaches the end of its lifespan.

Here at SOLAREC we believe investing in resource recovery would not only address this looming waste issue but also allow Australia to reclaim valuable materials such as silicon, silver, and rare earth elements. These materials could be fed back into the manufacturing process, reducing the need for new imports and closing the loop on the renewable energy supply chain. Yet, this vital aspect of the energy transition has been largely overlooked in the rush to deploy more panels, more quickly.

A Call for a Balanced, Sovereign Strategy

Australia’s current approach to renewable energy is undeniably focused on the immediate goal of reducing emissions. However, this strategy, driven by expediency and short-term cost savings, risks undermining our long-term sovereignty, economic resilience, and environmental responsibility.

It is time for a more balanced approach—one that emphasises the importance of domestic manufacturing and resource recovery alongside the rapid deployment of renewable technologies. By investing in these areas, Australia can build a more secure, sustainable, and sovereign energy future, ensuring that the benefits of the energy transition are truly felt by all Australians, not just in the short term but for generations to come.