The Australian solar market has undergone a significant transformation in recent years. A mix of technological advancements, policy changes, and increasing consumer demand drives this. As the country strives to achieve its renewable energy targets, solar power has emerged as a key player in the energy landscape.
The key players in the solar energy market
The solar energy market in Australia is thriving, putting the nation as a global leader in solar energy adoption. As of 2024, the country has one of the highest rates of solar penetration in the world.
The government plays a significant role in shaping the market through various initiatives and programs that provide significant funding to support domestic solar manufacturing and innovative projects. Additionally, state and federal rebates for residential solar installations have also boosted consumer adoption significantly.
Another key player in the market is the private sector, which involves solar energy companies, from manufacturers of solar panels and batteries to installation services and technology developers. Finally, Aussie consumers are also embracing solar energy more, motivated by the desire for sustainable living, energy independence, and cost savings.
Trends and predictions for 2024
Below are some of the solar energy trends and predictions for this year and beyond:
Improved solar panel efficiency
The efficiency of solar panels refers to how well a solar panel converts sunlight into electricity. Therefore, the higher the efficiency, the more power output a solar panel can produce from a given area. Solar panel manufacturers have focused on developing higher-efficiency panels over the years. Today, we have seen some solar panels with efficiencies above 23%.
In mid-2024, SunPower (Maxeon) held the top spot in terms of the highest solar panel efficiency with their Maxeon 7 series. Newcomers, like Aiko Solar’s Neostar Series, also brought in impressive solar panel efficiency at 23.6%. Other leading manufacturers are LONGi, Jinko Solar, Trina Solar, and TW Solar.
In the last few months of 2024 leading to 2025, we can expect to witness more solar panels with higher efficiencies in Australia.
Policy changes
Policy changes like the SolarSunshot initiative are shaping market dynamics. With AUD 1 billion allocated to improve domestic solar PV manufacturing, this is set to accelerate. The Australian Renewable Energy Agency ARENA) is also driving projects along the PV supply chain to reinforce the focus on renewable energy targets.
Also, market demand and consumer preferences are shifting towards solar energy due to the growing interest in clean energy solutions and the economic advantages of solar installations. This trend is expected to continue influencing both policy and technological advancements in the years ahead.
Increased battery adoption
In the second half of 2023, PSW Energy recorded a 250% increase in battery adoption compared to the same period in 2022. This will likely continue and shape the future of the solar energy sector in 2024 as more customers realise battery systems are extremely beneficial and go beyond saving more money.
Solar batteries are also becoming a necessity with the widespread adoption of rooftop solar panels that allow for storage and solar oversizing when grid limitation occurs.
Expansion of large-scale solar farms
Arena showed statistics in March 2021 reflecting solar farms are contributing around 7,000 MW of power generation connected to the electricity grid. With this, it is expected that there will be large-scale solar projects in 2024. One of the biggest solar projects today is being taken by Pacific Partnerships, which involves the development rights for the 700MWac Cobbora Solar Farm and co-located large-scale battery energy storage project in New South Wales. When developed, it will be one of the largest solar farms in Australia.
The future of solar energy 2024 in Australia remains bright with significant growth in the past months. The increased battery adoption and improved solar panel efficiency will shape the solar energy landscape.
Energy Matters has been in the solar industry since 2005 and has helped over 40,000 Australian households in their journey to energy independence.
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