| Key Points |
|
Australians are installing rooftop solar and home batteries at record pace, as households and small businesses look to cut soaring power bills and gain more control over when they use electricity.1
More than 300,000 rooftop solar systems were added in 2024 alone, pushing the national total past 4 million installations and cementing consumer-owned solar as a major part of the grid.1
Rooftop solar supplied 12.4 per cent of Australia’s electricity in 2024, up from 11.2 per cent the year before, and continues to outpace large-scale solar as a share of generation.2
Analysts estimate roughly 32,000 new solar and battery systems were registered in 2024, as more customers choose to store daytime solar for use in the evening peak.3
New South Wales leads the country on home battery sales, with Victoria and Queensland close behind, revealing that uptake is strongest in the eastern states’ sprawling suburbs.4
Energy planners expect rooftop solar on homes and businesses to keep growing rapidly, with distributed solar capacity projected to rise from about 21 gigawatts now to around 36 gigawatts by 2030 and 86 gigawatts by mid‑century.5
They also forecast a rapid expansion of small-scale batteries, which can act together as virtual power plants and help keep the grid stable as coal plants retire.6
Cost-of-living pressures, falling technology costs and the promise of greater energy independence are driving this shift, while generous sunshine across much of the continent makes rooftop solar an obvious choice for many Australians.1
How fast solar use is growing
Clean Energy Council data show that 300,375 rooftop solar systems were installed across Australia in 2024, lifting the total number of systems on homes and small businesses above 4 million for the first time.1
Those small-scale systems generated 12.4 per cent of Australia’s electricity in 2024, up from 11.2 per cent in 2023 and nearly double their contribution in 2020.2
The Australian Energy Market Operator reports that distributed solar hit record output in late 2024, helping renewables reach more than three quarters of generation at times in the National Electricity Market and pushing minimum grid demand to new lows in several states.7
Rooftop systems already supply about 13 per cent of generation in the National Electricity Market in some quarters, exceeding the output of utility-scale solar and matching or beating other renewable sources in the daytime mix.5
Energy planners expect that, on sunny days this decade, rooftop solar alone could meet more than half of underlying demand across the eastern grid during midday hours.5
Projections from the latest Integrated System Plan suggest that by 2034 more than half of detached homes in the National Electricity Market will have rooftop solar, rising to almost four in five homes by 2050 under the central transition scenario.5
Who is installing solar and batteries
Most rooftop solar systems sit on detached houses and small business premises, reflecting the fact that owners of stand‑alone buildings can more easily decide to invest in panels on their own roofs.1
One in three Australian households already has rooftop solar, and uptake tends to be highest in outer suburbs and regional towns where roofs are larger and electricity bills for heating and cooling can be substantial.5
Apartment dwellers and renters face more barriers because they often cannot make decisions about shared roofs or long-term investments, which leaves them more dependent on the main grid and retail tariffs.8
Battery systems are spreading fastest among solar owners with higher daytime production and evening consumption, such as families with electric vehicles or electric heating, who can shift more of their use to stored solar rather than grid power.3
Industry data indicate that around 32,000 new solar and battery combinations were registered with the national regulator in 2024, following a more than 50 per cent surge in such installations in 2023 and a further one third increase in 2024.3
Clean Energy Council reporting shows that New South Wales now records the highest number of home battery sales, with more than 14,000 systems in the second half of 2024 alone, followed by about 11,000 in Victoria and 8,500 in Queensland over the same period.4
Why households and businesses are investing
Households primarily install solar to cut electricity bills, with industry analysis estimating typical annual savings of up to about $1,500, which can almost double when a battery is added and used well.6
Many consumers also seek more energy independence, wanting to rely less on grid prices and to keep essential appliances running during blackouts when their systems allow limited backup from batteries.6
Environmental concerns remain a strong secondary driver, as small-scale solar and batteries give households a visible way to cut their emissions and support the national goal of reaching about 82 per cent renewable electricity by 2030.6
Government rebates and feed-in tariffs, which pay households for surplus solar sent to the grid, continue to support uptake, although incentives and tariff levels vary between states and have generally declined as systems have become cheaper and more common.1
Home batteries still have a relatively high upfront cost, typically in the order of $12,000 to $15,000 for a common system size, which industry groups flag as a major barrier to wider adoption without broader rebate schemes.4
Energy organisations are calling for a national battery rebate program to complement existing state schemes, arguing that coordinated support would speed uptake, ease evening peak demand and lower overall system costs for all consumers.4
Where solar and batteries are being used
Solar and batteries are widespread in every state and territory, but the highest volumes of new rooftop systems and storage are in New South Wales, Victoria and Queensland, which together dominate national home battery sales and a large share of solar installations.1
AEMO’s market reports show record distributed solar output in all National Electricity Market regions in late 2024, with Queensland and Victoria in particular seeing strong midday solar generation that pushes grid demand to record lows.7
Western Australia, which operates its own wholesale market, has also recorded sharp growth in rooftop solar, with distributed systems steadily lowering operational demand in the middle of the day and prompting new rules to manage minimum demand events.7
Regional and rural communities often rely heavily on solar and, increasingly, batteries because long feeder lines and exposure to extreme weather can make grid power less reliable, so local generation and storage can help maintain essential services.8
In cities, suburban streets lined with panels now contribute a significant share of local daytime demand, which is reshaping how distribution networks plan upgrades and manage voltage on low-voltage feeders.1
Commercial and industrial rooftop systems are also expanding, as supermarkets, warehouses and light manufacturers seek to shield their operations from volatile wholesale prices by generating and, in some cases, storing more of their own power on site.8
What comes next for solar and batteries
Projections prepared for AEMO by the national science agency indicate that distributed solar capacity, including residential and business rooftops as well as larger commercial systems, is expected to climb from about 21 gigawatts today to roughly 36 gigawatts by 2030 and 86 gigawatts by 2050, with rooftop systems accounting for most of that growth.6
Under AEMO’s central transition scenario, rooftop solar capacity could reach around 72 gigawatts by mid‑century, driven by further cost reductions and ongoing consumer demand for behind‑the‑meter generation.5
The same planning documents highlight that small-scale batteries, electric vehicles and controllable loads will become critical parts of the future grid, acting together as flexible “consumer energy resources” that can provide services once supplied mainly by large power stations.5
If enough owners allow their batteries to be coordinated through virtual power plants, these fleets can support frequency control, supply capacity during peaks and reduce the amount of utility‑scale generation and network investment needed to keep the system reliable.4
Energy market bodies warn that stronger standards, smarter inverters and better incentives will be essential to integrate millions of solar and battery systems safely, while ensuring benefits flow not only to early adopters but also to renters, apartment residents and low‑income households.8
For now, the trend is clear, with every new panel and battery pushing Australia further along the path to a grid dominated by renewable energy owned not just by utilities, but by households and businesses across the country.1
References
- Clean Energy Council, Rooftop solar and storage biannual report July–December 2024
- Clean Energy Council, Rooftop solar and storage report January–June 2024
- Australian Energy Council, Solar Report: Year of 2024
- Clean Energy Council, Rooftop solar uptake booms in 2024 as call grows for national home battery rebate
- PV Magazine Australia, AEMO reinforces role of rooftop solar in energy transition
- CSIRO for AEMO, Small-scale solar PV and battery projections 2024
- AEMO, Quarterly Energy Dynamics Q4 2024
- Clean Energy Council, Rooftop solar and storage biannual report January–June 2025
No comments :
Post a Comment