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Solar energy in Australia is a rapidly growing industry, with the country having the highest solar radiation per square metre of any continent. The Australian government has been instrumental in the development of clean solar energy, with schemes such as the Solar Homes and Communities Plan, which provided rebates for installing solar panels, and the Solar Credits Program, which incentivised solar system installations. As of 2024, Australia had over 3.92 million solar PV installations, with solar accounting for 19.6% of the country's electrical energy production. The country's dry climate and latitude give it high benefits and potential for solar energy production, with Western and Northern Australia having the maximum potential for PV production.
| Characteristics | Values |
|---|---|
| Solar energy potential | Australia has the highest solar radiation per square metre of any continent, with the arid regions of the northwest and centre receiving the most solar radiation. |
| Solar energy usage | Solar energy currently accounts for approximately 0.1% of Australia's total primary energy consumption, with solar thermal water heating being the most common application. |
| Solar PV installations | As of September 2024, Australia had over 3.92 million solar PV installations with a combined capacity of 37.8 GW. Rooftop solar PV installations reached 20 GW of total capacity in 2023, with New South Wales leading the way. |
| Solar PV generation | Solar PV generated approximately 10% of Australia's electricity in 2020-21, contributing 46.7 TWh to the National Electricity Market and South West Interconnected System in 2024. |
| Large-scale solar projects | The Australian government has committed $1.5 billion to support large-scale solar power plants using solar thermal and PV technologies. NSW is a leader in the development of large-scale solar projects, with almost 7 GW of generation connected to the grid. |
| Feed-in tariffs | Several states have implemented feed-in tariffs to encourage the uptake of solar PV power generation, with households selling excess electricity to retailers. The Australian Capital Territory (ACT) started a solar gross feed-in tariff in March 2009. |
| Solar incentives | The Australian government offers financial incentives such as the Solar Credits Program, rebates, and grants for installing solar systems in homes, schools, and community buildings. |
| Solar research and development | The Australian Renewable Energy Agency (ARENA) has provided over $230 million to around 130 solar R&D projects since 2012. The CSIRO's solar research thermal hub in Newcastle is Australia's largest solar thermal research facility. |
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What You'll Learn
Solar energy potential in Australia
Australia has a high potential for solar energy production. The country receives an average of 58 million PJ of solar radiation annually, which is approximately 10,000 times larger than its total energy consumption. The Australian continent has the highest solar radiation per square metre of any continent, and its dry climate and latitude further contribute to its solar energy potential.
Despite this, Australia's current use of solar energy is low, accounting for only about 0.1% of its total primary energy consumption. However, solar energy is a major contributor to the country's electricity supply, with solar PV systems playing an important role in off-grid electricity generation in remote areas. In 2020-21, solar PV generated approximately 10% of Australia's electricity, and this percentage is increasing due to government policies and the development of photovoltaic and concentrating solar thermal technologies.
The Australian government has implemented various initiatives to promote the use of solar energy. The Solar Homes and Communities Plan, for example, provided rebates of up to $8,000 for installing solar panels on homes and community buildings. The government has also established the Clean Energy Initiative Solar Flagships Program, committing $1.5 billion to support the construction of large-scale solar power plants using solar thermal and PV technologies.
Additionally, many Australian states have set up schemes to encourage the uptake of solar PV power generation, such as the feed-in tariff program, where households with solar panels can sell excess electricity to retailers. As of September 2024, Australia had over 3.92 million solar PV installations, with a combined capacity of 37.8 GW. The country has the highest per capita solar capacity, now exceeding 1kW per capita.
Australia's vast solar energy potential is expected to be utilized for energy generation on a large scale, with Western and Northern Australia having the maximum potential for PV production. The country's solar energy capacity is projected to meet the world's growing demand for clean energy.
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Solar PV systems
The Australian Government’s Solar Consumer Guide provides free and expert guidance on rooftop solar and batteries for homes or small businesses. This guide helps users choose, use and maintain a rooftop solar system that suits their needs and maximises their savings.
The Australian Renewable Energy Agency (ARENA) has provided almost $300 million to around 200 solar research and development projects since 2009. ARENA also supports the Australian Centre for Advanced Photovoltaics, which provides a collaborative, strategic focus to innovation that can be incorporated into current manufacturing techniques.
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Solar thermal systems
Solar energy is a major contributor to electricity supply in Australia. The country receives an average of 58 million PJ of solar radiation per year, which is approximately 10,000 times larger than its total energy consumption. However, Australia's current use of solar energy is low, with solar energy accounting for only about 0.1% of its total primary energy consumption.
Australia is well-suited to concentrating solar thermal technology due to its high solar radiation levels. The country has the highest average amount of solar radiation per square metre per annum of all the continents, ranging from 1500 to 1900 kWh/m2/yr depending on location. This abundance of solar energy resources has led to the development of a small but long-established solar hot water industry in Australia.
The Australian Solar Thermal Energy Association (AUSTELA) is an industry body dedicated to solar thermal power. They have outlined the need for long-duration dispatchable capacity in the National Electricity Market to address capacity challenges as coal plants are retired. AUSTELA also highlights the potential for concentrating solar thermal power to play a major role in cost-effective decarbonisation.
The Australian government has recognised the importance of solar thermal technology through initiatives such as the Clean Energy Initiative and the Solar Flagships Program, committing $1.5 billion to support large-scale solar power generation projects. Additionally, the Mandatory Renewable Energy Target aims to ensure that renewable energy achieves a significant share of electricity supply in Australia.
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Rooftop solar installations
Australia has the highest solar radiation per square metre of any continent, and consequently, some of the best solar energy resources in the world. The country's dry climate and latitude give it high benefits and potential for solar energy production.
The Clean Energy Council Policy Director of Distributed Energy, Con Hristodoulidis, has stated that the "sheer scale and pace of rooftop solar in Australia is unparalleled anywhere else in the world". This is due to an abundance of sunshine and inherent benefits, including lower energy bills and feed-in tariffs.
As of 2024, Australia has the potential to add four million more rooftop solar systems (or 26.4 GW) by better utilising available rooftop space on owner-occupied homes, social housing, and businesses. Additionally, by installing two million more batteries in homes and businesses, Aussies can store excess solar power during the day and use it at night, further reducing their energy bills.
The Australian government has also implemented financial incentives for installing solar systems, such as the Small-scale Renewable Energy Scheme, where eligible systems can claim small-scale technology certificates (STCs). The Solar Homes and Communities Plan also provided rebates of up to A$8,000 for installing solar panels on homes and community buildings (excluding schools).
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Solar energy usage in households
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 metre of any continent, receiving an average of 58 million PJ of solar radiation per year. This is approximately 10,000 times larger than its total energy consumption.
Solar energy is created by the heat and light of the sun and is converted into electricity or used to heat substances. There are two main types of solar power technology: solar photovoltaic (PV) and solar thermal. PV systems can be installed on rooftops, integrated into building designs, vehicles, or scaled up to megawatt-scale power plants. Solar thermal is commonly used for hot water systems and to heat spaces.
Solar energy usage in Australian households has been increasing. In 2018, Australia had 1.96 million residential rooftop solar systems, with a total of 2.04 million rooftop PV systems. By 2021, Australia had 13 GW of rooftop solar, and more than 30% of Australian households had rooftop solar PV, with a combined capacity exceeding 11 GW. Australia leads the world in residential uptake of solar, with a nation-wide average of free-standing households with a PV system at over 20%. As of September 2024, Australia had over 3.92 million solar PV installations, with a combined capacity of 37.8 GW of photovoltaic (PV) solar power.
To encourage the uptake of solar energy, the Australian government has implemented various initiatives. The Solar Homes and Communities Plan offered rebates of up to $8,000 for installing solar panels on homes and community buildings. The Victorian state government is providing rebates of up to $1,888 and interest-free loans for solar PV panel installations. The Queensland government introduced the Affordable Energy Plan, offering interest-free loans for solar panels and solar storage. The Australian Capital Territory (ACT) started a solar gross feed-in tariff, providing payments for systems up to 10 kW and 30 kW. The Australian Renewable Energy Agency (ARENA) has funded numerous solar energy projects, providing over $230 million to around 130 solar research and development projects.
Despite Australia's significant solar resources and increasing solar energy usage in households, its current use of solar energy as a proportion of total energy consumption is relatively low. In 2020-21, solar PV generated approximately 10% of Australia's electricity, and in 2024, solar accounted for 19.6% of the country's electrical energy production. While Australia has made strides in renewable energy, with a doubling of its renewable energy share in six years, there is still potential for further growth in solar energy usage in households.
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Frequently asked questions
Solar energy is energy created by the heat and light of the sun. It is produced when this energy is converted into electricity or used to heat substances like water, air, or other fluids.
Solar energy is used in Australia to heat swimming pools and to generate electricity. It is also used for hot water systems, and in solar lights, fans, and batteries. As of 2024, solar energy accounted for 19.6% of Australia's electrical energy production.
Australia has the potential to install 179 GW of solar power on roofs across the nation. The continent has the highest solar radiation per square metre, making it one of the best solar energy resources in the world. The arid regions of the northwest and centre of the continent receive the most solar radiation.
