Australia’s solar energy sector achieved a landmark 5.3GW of new installations in 2024, a new national record. This growth was driven by a robust rooftop solar market, which now sees over 40% of the country’s detached homes generating their own power. Despite this strong performance, Australia did not rank among the world’s top ten solar markets for the second year in a row, a reflection of the accelerated pace of solar adoption in other parts of the globe. The nation’s market remains uniquely characterized by its dominant distributed generation, even as its utility-scale sector shows signs of recovery.
The record installation figure for 2024 was composed of 2GW from utility-scale projects and a steady 3.2GW from residential and commercial rooftop systems. This performance brought large-scale additions back toward peak levels last seen in 2018-2019. However, the rapid expansion of solar capacity in other countries meant that Australia’s stable growth was not enough to secure a top-ten global ranking, ending a long-standing position it had held since the 1990s. By the end of 2024, the nation’s total installed solar capacity reached 40GW, with 26.1GW from distributed systems and 13.4GW from centralized power plants.
The rooftop solar segment continues to be the backbone of Australia’s solar success, supplying approximately 20% of the country’s total electricity. The Small-scale Renewable Energy Scheme (SRES) has been pivotal, offering upfront capital cost reductions that have encouraged widespread adoption. This has resulted in a world-leading installation rate of over 1.52kW per person and more than four million individual systems nationwide. The trend is particularly strong in states like Queensland and South Australia, where nearly half of all free-standing homes have solar panels. The average size of residential installations has also increased, climbing to almost 10kW in 2024.
While the rooftop market thrives, the large-scale solar sector is also regaining momentum. Supported by mechanisms like Large-Scale Generation Certificates, which provide ongoing revenue, the sector is poised for further expansion under the government’s Capacity Investment Scheme (CIS). This initiative aims to facilitate 40GW of new electricity generation capacity by 2030. However, utility-scale projects face significant hurdles, including complex grid connection approvals, network congestion, and strict output curtailment rules designed to maintain system stability. In South Australia, for example, high solar penetration frequently requires the Australian Energy Market Operator (AEMO) to limit output from large solar farms.
In tandem with solar growth, battery storage is becoming increasingly integrated. In 2024, over 31,100 residential battery units were installed, signaling a growing consumer interest in energy self-sufficiency. This trend is expected to accelerate with new government incentives like the Cheaper Home Batteries Program. On the manufacturing front, a renewed focus on domestic production has emerged, backed by the AU$1 billion Solar Sunshot Program. This policy aims to rebuild local manufacturing capabilities and support the commercialization of Australian solar technology, with companies like Tindo Solar and 5B among the first beneficiaries.
Looking ahead, Australia’s solar industry faces a landscape of both immense opportunity and regulatory complexity. The successful management of a grid with high levels of renewable penetration, as demonstrated in South Australia where rooftop solar can power the entire state during midday, offers a blueprint for other regions. However, fragmented grid access regulations continue to pose challenges. The future of the utility-scale sector may be defined by several proposed large-scale projects focused on energy exports and green minerals, which could potentially add another 4GW of capacity annually and solidify Australia’s role as a major player in the global energy transition.