Solar photovoltaic (PV) panels on the roofs of homes and businesses use energy from the sun to generate electricity cleanly and quietly.
Solar doesn't generate electricity all the time, but it does generate electricity when it is needed most – during the day and during hot sunny periods when the demand for power (driven by air conditioners) is at its peak.
Another bonus of small-scale solar is that it generates electricity at the point of demand (i.e. where people live and work). This means that there is no need to transfer energy over long distances using expensive electrical infrastructure.
Australia is one of the sunniest continents in the world. Given a stable policy environment, there is massive potential for solar to make a significant contribution to electricity generation in Australia over the coming decades.
Solar generation
In 2023, small-scale solar (systems up to 100 kW) was responsible for 28.5 per cent of Australia's clean energy generation and produced 11.2 per cent of the country's total electricity.
The growth of solar
Over 3.7 million households now enjoy the benefits of rooftop solar across Australia.
There were 337,498 rooftop solar installations in 2023. This resulted in the industry adding 3.1 GW of new capacity in 2023, the second highest annual total recorded behind the 3.3 GW set in 2021.
Medium-scale solar
The medium-scale solar sector (systems between 100 kW and 5 MW) added 830 MW of new capacity in 2023, which was the sector's best year.
There is now 3.8 GW of capacity in the medium-scale sector, with over a third of the total being added over the past two years.
The rapid growth has been due to shopping centres, hospitals, schools and commercial buildings installing solar to take back control of their rising electricity costs and increasing their focus on sustainability.