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Australia has the potential to be a solar-powered country. The country has an abundance of solar energy resources, with the highest solar radiation per square meter of any continent. In addition, Australia has the highest per capita solar capacity and leads the world in rooftop solar installations. As of March 2025, Australia had over 4.09 million solar PV installations, with solar accounting for 19.6% of the country's electrical energy production. The Australian government has also set a target of establishing up to 1000 megawatts (MW) of solar power generation capacity. Furthermore, the town of Onslow in Western Australia has already achieved a 100% solar-powered microgrid, even if only for 80 minutes. However, there are challenges to be addressed, such as the need for more transmission infrastructure and the current low utilization of solar energy in the country, accounting for only about 0.1% of total primary energy consumption.
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What You'll Learn
Solar energy potential in Australia
Australia has the highest solar radiation per square meter of any continent, giving it the best solar energy resource in the world. The country's dry climate and latitude also contribute to its high potential for solar energy production.
Solar energy is a major contributor to electricity supply in Australia. As of March 2025, Australia had over 4.09 million solar PV installations with a combined capacity of 40.6 GW, accounting for 19.6% of the country's electrical energy production in the National Electricity Market and South West Interconnected System in 2024. The country has the highest per capita solar capacity, now over 1.4 kW, and the highest uptake of rooftop solar in the world.
Australia's energy resources, including solar energy, are outlined in the Australian Energy Resource Assessment. The government aims to establish up to 1000 megawatts (MW) of solar power generation capacity, and Geoscience Australia is supporting this initiative by providing solar resource prospectivity data and analysis.
The Australian Renewable Energy Agency (ARENA) was established in 2012 to improve the competitiveness of renewable energy technologies and encourage innovation. ARENA funds research and development projects that are making significant progress in solar innovation, with the goal of making ultra-low-cost solar the backbone of the country's clean energy transition.
Several incentive programs have been implemented to encourage the uptake of solar energy in Australia. For example, the Solar Homes and Communities Plan provided rebates of up to A$8,000 for installing solar panels, and schools could apply for grants of up to A$50,000 to install 2 kW solar panels. Additionally, some states have set up schemes to encourage the uptake of solar PV power generation, such as feed-in tariffs where households install solar panels and sell excess electricity to retailers.
Despite Australia's vast solar energy potential and increasing capacity for solar power generation, its current use of solar energy is low, accounting for only about 0.1% of the country's total primary energy consumption. However, electricity generation from solar sources is increasing due to government policies and the development of photovoltaic and concentrating solar thermal technologies.
The town of Onslow in Western Australia has achieved a 100% renewable energy milestone, powered by solar and battery energy storage for 80 minutes during a trial. This demonstrates the potential for a fully renewable energy future in the state.
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Solar PV systems and solar panel installations
Solar photovoltaic (PV) systems are an increasingly popular way to generate electricity in Australia. PV systems can be installed on rooftops, integrated into building designs, or even mounted on the ground. Solar PV systems use photovoltaic cells to convert sunlight directly into electricity. The Australian continent has the highest solar radiation per square meter of any continent, making it an ideal location for solar energy production.
As of March 2025, Australia had over 4.09 million solar PV installations with a combined capacity of 40.6 GW. This accounts for 19.6% of Australia's electrical energy production in the National Electricity Market and South West Interconnected System. The uptake of solar PV systems in Australia has been rapid, with the installed PV capacity increasing 10-fold between 2009 and 2011 and quadrupling between 2011 and 2016. By early 2020, Australia had 10.7 GW of rooftop solar, which increased to 13 GW by 2021.
There are a variety of solar PV system sizes available for residential installations. The recommended system size depends on the number of people in the household and their energy usage. For example, a 6.6 kW system is suitable for a household of 4-5 people with relatively high energy usage, and it can produce an estimated 14-16 kW per day in winter and 26-30 kW per day in summer. Larger systems, such as those over 9 kW, are becoming more common for households with high energy usage, such as those with pools or electric vehicles.
The cost of installing solar panels has decreased significantly over time, making solar energy an affordable investment for most homes. The Australian government also offers incentives such as rebates and grants for new solar panel installations. Additionally, the government provides a step-by-step guide, the Solar Consumer Guide, to help individuals choose, use, and maintain a rooftop solar system that suits their needs and maximizes their savings.
Solar PV systems play an important role in off-grid electricity generation in remote areas of Australia, and they are a major step in the transition away from fossil fuels. With Australia's abundance of solar energy resources and high uptake of solar PV systems, the country is well-positioned to continue increasing its solar capacity and reducing its carbon emissions.
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Government incentives and policies for solar power
Australia has an abundance of solar energy resources, and its dry climate and latitude give it high benefits and potential for solar energy production. The Australian continent has the highest solar radiation per square meter of any continent, and consequently, some of the best solar energy resources in the world.
The Australian government has implemented various incentives and policies to promote the adoption of solar power, recognizing the country's potential for solar energy utilization. The Small-scale Renewable Energy Scheme (SRES) is one such initiative. The SRES offers financial incentives for households and businesses to install small-scale renewable energy systems, including rooftop solar, solar batteries, and solar water heaters. This scheme is designed to reduce the upfront costs of adopting solar technology, making it more accessible to the public.
The Cheaper Home Batteries Program is another example of government intervention. This program provides discounts of around 30% on the cost of installing eligible small-scale batteries, supporting households and businesses in their transition to solar energy. Additionally, the government has committed $1.5 billion to the Clean Energy Initiative Solar Flagships Program, which aims to construct and demonstrate up to four large-scale solar power plants in Australia, utilizing solar thermal and PV technologies.
Furthermore, several states have established feed-in tariff schemes, where households with solar panels can sell their excess electricity back to the grid. These tariffs are set by each state and vary based on factors such as the price paid, the export basis, and the size of the installation. The Australian Capital Territory (ACT), for instance, offers a solar gross feed-in tariff with payments ranging from 50.05 cents per kWh for systems up to 10 kW to 40.04 cents per kWh for systems between 10 kW and 30 kW.
The Australian government has also set a target to establish up to 1000 megawatts (MW) of solar power generation capacity, with Geoscience Australia contributing through the provision of solar resource data and analysis. This target reflects the government's recognition of the importance of solar energy in reducing carbon emissions and meeting its Paris Agreement goals.
In summary, the Australian government has implemented a range of incentives and policies to encourage the uptake of solar power, including financial incentives, subsidies, and the establishment of renewable energy targets. These initiatives aim to reduce the cost barriers associated with solar technology and accelerate the country's transition towards a more sustainable energy future.
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Solar power as a contributor to Australia's electricity supply
Solar power is a significant contributor to Australia's electricity supply. The country has been increasing its solar PV installations since 2018, propelling itself from a relative laggard to a strong leader in the renewable energy sector. As of March 2025, Australia had over 4.09 million solar PV installations, with a combined capacity of 40.6 GW. This accounts for 19.6% of the country's electrical energy production in the National Electricity Market and the South West Interconnected System.
Australia has the highest solar radiation per square meter of any continent, making it an ideal location for solar energy production. The country's dry climate and latitude further contribute to its high potential for solar energy utilization. Recognizing this potential, the Australian government has implemented various incentive programs to encourage the adoption of solar power. The Solar Homes and Communities Plan, for instance, provides rebates of up to A$8,000 for installing solar panels, with schools being eligible for grants of up to A$50,000 to install 2 kW solar panels.
Additionally, several states in Australia have established schemes to promote the uptake of solar PV power generation, such as the feed-in tariff system, where households can install solar panels and sell excess electricity back to the grid. These initiatives have resulted in Australia having the highest uptake of rooftop solar in the world, with a nationwide average of over 20% of free-standing households with PV systems. As of 2021, Australia had 13 GW of rooftop solar installations, and the country was on track to install even more in the following years.
The growth in large-scale renewable energy projects, including solar power, is driven by the government's goal to reduce greenhouse gas emissions and increase energy security. The Australian Renewable Energy Agency (ARENA) plays a crucial role in this transition by funding research and development projects that aim to make solar technology the backbone of the country's clean energy future.
While Australia has made significant strides in solar energy adoption, there is still room for growth. In 2012, solar PV accounted for only 8% of renewable electrical sources, and solar energy currently represents a small fraction of the country's total primary energy consumption. However, with continued government support, technological advancements, and increasing cost-effectiveness, solar power is expected to play an even more prominent role in Australia's electricity supply in the future.
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Solar power as a path to net-zero carbon emissions
Australia has an abundance of solar energy resources and is well-positioned to harness solar power to achieve net-zero carbon emissions. The country receives high solar radiation per square meter due to its dry climate and latitude, making it ideal for solar energy production. As of March 2025, Australia had over 4.09 million solar PV installations, with a combined capacity of 40.6 GW. This accounts for 19.6% of the country's electrical energy production in the National Electricity Market and South West Interconnected System.
Solar power is a major contributor to Australia's electricity supply, and the country has made significant strides in solar uptake. Australia leads the world in residential and rooftop solar installations, with a nationwide average of free-standing households with PV systems at over 20%. The growth in large-scale renewable energy projects, such as solar farms, has been stimulated by government policies and initiatives, such as the Renewable Energy Target and the Australian Renewable Energy Agency (ARENA). ARENA was established in 2012 to improve the competitiveness of renewable energy technologies and encourage innovation in the industry.
To further accelerate the transition to solar energy, several incentive programs were introduced in 2008, including the Solar Homes and Communities Plan, which provided rebates of up to A$8,000 for installing solar panels. Additionally, many Australian states have implemented feed-in tariff schemes, where households with solar panels can sell excess electricity back to the grid. These initiatives have contributed to Australia's progress towards net-zero carbon emissions.
Despite the impressive growth in solar power, Australia's current use of solar energy accounts for only about 0.1% of its total primary energy consumption. However, with the right policies, infrastructure, and continued support for renewable energy sources, Australia can harness its abundant solar resources to achieve net-zero carbon emissions. The country's unique advantages in solar radiation and the decreasing costs of solar technology make it a viable and attractive option for a sustainable energy future.
Australia's progress in solar power, combined with other renewable sources such as wind and hydro, is crucial in reducing greenhouse gas emissions and addressing climate change. The country's commitment to international agreements, such as the Paris Agreement, and the development of innovative solar technologies, demonstrate its recognition of the importance of transitioning to renewable energy sources.
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Frequently asked questions
Solar power is produced when energy from the sun is converted into electricity or used to heat substances.
Solar energy currently accounts for only about 0.1% of Australia's total primary energy consumption. However, solar power is a major contributor to electricity supply in Australia, with over 4.09 million solar PV installations with a combined capacity of 40.6 GW of photovoltaic (PV) solar power.
The Australian government aims to establish up to 1000 megawatts (MW) of solar power generation capacity. Several states have also set up schemes to encourage the uptake of solar PV power generation, such as feed-in tariffs.
Australia has the highest solar radiation per square meter of any continent and, therefore, some of the best solar energy resources in the world. Australia also leads the world in rooftop solar installations. While Australia has historically relied heavily on coal for energy, it is now a party to the Paris Agreement, which binds the country to reduce its greenhouse gas emissions. Given these factors, Australia has the potential to become a solar-powered country.
