The sudden rise in solar PV installations in Australia since 2018 dramatically propelled the country from being considered a relative laggard to a strong leader by mid-2019. Australia has the highest per capita solar capacity, now at more than 1kW per capita.[5]
Growth accelerated dramatically during 2018 in both rooftop distributed solar and utility-scale solar which became a significant component by the end of the year.
According to The Institute for Sustainable Futures, the School of Photovoltaic and Renewable Energy Engineering (SPREE) at the University of New South Wales (UNSW) Australia has the potential to install 179 GW of solar power on roofs across the nation.[19] At the end of 2018 Australia had just over 8 GW of rooftop solar.[11]
Even though Australia had a world-leading solar uptake, the study found the country was using less than 5% of its potential capacity for rooftop solar as of June 2019.[20] According to the study, the combined annual output from rooftop solar could theoretically reach 245 TWh, more than the current annual grid consumption of just under 200 TWh per year.[20]
The Solar Homes and Communities Plan was a rebate provided by the Australian Government of up to A$8,000 for installing solar panels on homes and community use buildings (other than schools).[21] This rebate was phased out on 8 June 2009, to be replaced by the Solar Credits Program, where an installation of a solar system would receive five times as many Renewable Energy Certificates for the first 1.5 kilowatts of capacity under the Renewable Energy Target (see below).[22]
Schools were eligible to apply for grants of up to A$50,000 to install 2 kW solar panels and other measures through the National Solar Schools Program beginning on 1 July 2008, which replaced the Green Vouchers for Schools program.[23] Applications for the program ended 21 November 2012. A total of 2,870 schools have installed solar panels.[24] The output of each array can be viewed, and compared with that of up to four other schools.[25]
Victorian state government is assisting homeowners and tenants by providing a rebate of up to $1,888 and an interest-free loan of an equivalent amount to their Solar PV panel rebate amount.[26]
The Australian Government has financial incentives for installing solar systems in the form of Small-Scale Technology Certificates, also referred to as STC''s. Australia is broken up into 4 zones and depending on the zone they lives, the applicant will receive a certain number of STC''s per kilowatt for an eligible solar system. Each STC is worth $35 – $40 AUD and amounts to a saving of about 25 – 30%. This government rebate on solar brings the cost per watt from $1.56 down to $1.12.[27]
This government initiative is set to slowly phase out giving a reduced number of STC''s each year per kW installed until the initiative ends on 31 December 2030.[28] The number of Small-scale Technology Certificates to be issued is calculated based on the following formula: System size in kW x Deeming period year x Postcode zone rating.[29]
Similar incentives are available to residents in some states for the installation of solar batteries and solar hot water systems[30] as well as wind power[31]
Over 90% of solar panels sold in Australia are made in China[37]—a situation not unique to Australia, since China manufactures some 75% of the world''s solar modules.[38] However, despite a worldwide shift towards greater diversity in manufacturing locations, concerns have been raised about the security of supply of imported panels as demand for photovoltaics increases.[39]
As of 2024, Australia has one company producing solar modules: Tindo solar, with a capacity of 160MW per year.[37]
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