The rooftop solar power market is heading towards maturity at rapid pace in Australia. The falling prices of solar modules and increasing grid electricity prices are encouraging homeowners and business firms to install photovoltaic (PV) roofing across the country.
With around 1.8 million rooftop PV installation systems—including large-scale solar projects, the country produced nearly a total of 6.3GW electricity last year contributing over 2% of nation’s electrical energy. Of this total, large-scale farms and rooftop panels combinedly added 1.25GW of solar power to the national grid last year.
This rooftop PV installation trend is expected to rise significantly in short-term as almost 30 new solar farms are slated to join the rooftop solar power market in the country.
Led by Queensland and New South Wales, large-scale solar power projects are predicted to add up to 3.5GW in country’s grid by the end of 2018.
At present, 18 and 10 large-scale projects are under construction in Queensland and NSW, respectively.
On the other hand, rooftop panels (excluding large-scale solar projects) alone is estimated to add 1.3GW to nation’s grid in the same time frame, thanks to federal Small-scale Technology Certificates (STC) subsidy that is encouraging households and business firms to install PV roofing.
The STC subsidy is applicable to the PV system that is over 10kW and below 100 kW. As per STC subsidy, let’s say in the state of Queensland, the customer will be paying roughly 30% less than normal purchase price. Due to this, the households and businesses with solar PV installation are estimated to save billions of dollars in power bill over a decade.
Driven by STC subsidy, the solar PV market players have envisioned residential rooftop solar power market as mainstay than commercial sector. In 2017, residential market accounted for around 65% of solar PV installation followed by commercial market which stands at around 20%.
Moreover, the rising trend in the installation of PV roofing in past couple of years in Australian homes is also presenting lucrative opportunity for PV market participants.
At present, almost 25% of homes in Australia have PV roofing and it is likely to increase significantly in mid-term and long-term.
This is because solar energy use in this part of the world is estimated to grow roughly by 6% a year reaching 24 petajoules (PJ) in 2029-30, according to Australian Renewable Energy Agency (ARENA).
In addition, Australia receives about 58 million PJ solar radiation annually which is almost 10,000 times of country’s yearly energy consumption. Hence, solar PV will be crucial in harnessing nation’s abundant solar resources and drive the nation towards prosperity.
For more information on “Asia-Pacific Rooftop Solar Power Market, Forecast to 2020” please visit https://store.frost.com/asia-pacific-rooftop-solar-power-market-forecast-to-2020.html
Subarna Poudel is a researcher with Frost & Sullivan. He can be reached at email@example.com
Sapan Agarwal drives content and marketing for Frost & Sullivan. Sapan is based out of Kuala Lumpur Malaysia and can be reached at firstname.lastname@example.org | +603 6204 5830