Solar power is a major contributor to electricity supply in Australia. As of December 2025, Australia's over 4.29 million solar PV installations had a combined capacity of 45.1 GW photovoltaic (PV) solar power. Solar accounted for 19.6% (or 46.7 TWh) of Australia's electrical energy production in the National Electricity Market and South West Interconnected System in 2024.
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 in under two years. Australia has the highest per capita solar capacity, now over 1.4kW.
The installed PV capacity in Australia increased 10-fold between 2009 and 2011, and quadrupled between 2011 and 2016. The first commercial-scale PV power plant, the 1 MW Uterne Solar Power Station, was opened in 2011. The price of photovoltaics decreased, and by 2013, the cost of solar power was less than half that of using grid electricity.
Installations by type +Off grid (MW)Grid-connected distributed (MW)Grid-connected centralized (MW)Total (MW)20151734,5803565,10920162105,3294465,98520172476,1457407,13220182848,0303,27211,586201930310,3965,70116,400202033013,5776,84020,748202136016,8678,55325,781202239719,70310,28630,387202344623,16911,01634,631 The largest share of solar PV installations in 2018 was from grid-connected distributed sources totalling 8,030 MW. These are rooftop systems in the residential, commercial and industrial sectors. For the purposes of the data, residential grid connect are systems <9.5 kW, commercial are systems between 9.5 and 99.9 kW and industrial are 100 kW to 5 MW. Grid connected-centralised plants was the next largest sector in 2018 with 3,272 MW installed, representing utility scale ground mounted solar with a power rating > 5 MW. Off-grid solar PV was the smallest segment at 284 MW in 2018.
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.
By year end 2018, Australia had 1.96 million residential rooftop solar systems and 78,000 commercial and industrial rooftop solar systems, for a total of 2.04 million total rooftop PV systems. Over 200,000 were installed in 2018 alone and the country was on track to install as many again in 2019. Australia leads the world in residential uptake of solar, with a nation-wide average of free-standing households with a PV system at over 20%. By early 2020, Australia had 10.7 GW of rooftop solar in 2.4 million systems. By 2021, Australia had 13 GW of rooftop solar. Where new inverters (solar or batteries) are installed, they are required to have certain functions such as low-voltage ride-through and grid support to handle local grid issues and improve power quality. there were 4.3 million rooftop solar systems installed nationwide, with a capacity of 28.3 GW. As per AS/NZS 3000 Wiring Rules assembly performed without a licensed electrician must be extra low voltage setups not exceeding 50 V AC or 120 V ripple-free DC.
Potential
Insolation potential Australia has an abundance of solar energy resource that is likely to be used for energy generation on a large scale. The combination of Australia's dry climate and latitude give it high benefits and potential for solar energy production. Most of the Australian continent receives in excess of per square metre per day of insolation during winter months, with a region in the north exceeding per square metre per day. Western and Northern Australia have the maximum potential for PV production.Poddar, S., Evans, J.P., Kay, M. et al. Assessing Australia’s future solar power ramps with climate projections. Sci Rep 13, 11503 (2023). https://doi.org/10.1038/s41598-023-38566-z Insolation greatly exceeds the average values in Europe, Russia, and most of North America. Comparable levels are found in desert areas of northern and southern Africa, south western United States and adjacent area of Mexico, and regions on the Pacific coast of South America. However, the areas of highest insolation are distant to Australia's population centres.
Roof top solar potential 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. At the end of 2018 Australia had just over 8 GW of rooftop solar.
+Potential for roof top solar by type, (Australian planning zone category)Type of roof top solar PVPotential GWResidential96.0Rural / Primary production33.9Industrial / Utilities19.0Commercial / Business9.3Special use6.7Mixed use4.0Community use3.9Unknown2.2Conservation / National park2.1Recreational / Open space1.7Transport / Infrastructure0.6 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. 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.
Incentives Rebates Several incentive programs started in 2008. The Solar Homes and Communities Plan was a rebate provided by the Australian Government of up to A$8,000 for installing solar panels.Solar Homes and Communities Plan Schools were eligible to apply for grants of up to A$50,000 to install 2 kW solar panels. Over its four years, 2,870 schools installed solar panels.
The Australian Government has financial incentives for installing solar systems in the form of Small-Scale Technology Certificates, also referred to as STCs. Australia is broken up into 4 geographic zones; applicants receive a fixed number of STCs per kilowatt for an eligible solar system base on their zone. STCs typically reduce the cost of a solar setup by about 25–30%, bringing the cost per watt close to a dollar. STCs are phasing out by the end of 2030.
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.
Similar incentives are available to residents in some states for the installation of solar batteries and solar hot water systems as well as wind power.
Feed-in tariffs and direct action
A number of states have set up schemes to encourage the uptake of solar PV power generation involving households installing solar panels and selling excess electricity to electricity retailers to put into the electricity grid, widely called "feed-in". Each scheme involves the setting of feed in tariffs, which can be classified by a number of factors including the price paid, whether it is on a net or gross export basis, the length of time payments are guaranteed, the maximum size of installation allowed and the type of customer allowed to participate. Many Australian state feed-in tariffs were net export tariffs, whereas conservation groups argued for gross feed-in tariffs. In March 2009, the Australian Capital Territory (ACT) started a solar gross feed-in tariff. For systems up to 10 kW the payment was 50.05 cents per kWh. For systems from 10 kW to 30 kW the payment was 40.04 cents per kWh. The payment was revised downward once before an overall capacity cap was reached and the scheme closed. Payments are made quarterly based on energy generated and the payment rate is guaranteed for 20 years.
In South Australia, a solar feed-in tariff was introduced for households and an educational program that involved installing solar PV on the roofs of major public buildings such as the Adelaide Airport, State Parliament, Museum, Art Gallery and several hundred public schools.Centre for National Policy, What States Can Do: Climate Change Policy, 4 April 2012 In 2018, the Queensland government introduced the Affordable Energy Plan offering interest free loans for solar panels and solar storage in an effort to increase the uptake of solar energy in the state.3 new Queensland Government Interest-free loans for solar and storage in 2018, 29 June 2018 In 2008 Premier Mike Rann announced funding for $8 million worth of solar panels on the roof of the new Goyder Pavilion at the Royal Adelaide Showgrounds, the largest rooftop solar installation in Australia, qualifying it for official "power station" status.http://www.adelaidenow.com.au/ 2 June 2008. "Adelaide Showgrounds to have nations biggest solar power project" South Australia has the highest per capita take up of household solar power in Australia.
Daily energy production estimate To determine the daily energy production per kilowatt, one can use the average sunlight hours. For example, the power output per kilowatt of a solar panel in Sydney can be estimated using average solar radiation data, usually measured during peak hours of sunlight. Sydney receives an average of about 4.5 to 5.0 peak sun hours per day throughout the year. This means, on average, each kilowatt solar panel receives 4.5 to 5.0 hours of full sunlight per day.
For example, if there is a 10kW solar system in Australia, the total daily energy production can be estimated as follows: 10 kW×5 hours/day=50 kWh/day.
Supply chain
Over 90% of solar panels sold in Australia are made in China, a situation not unique to Australia, since China manufactures some 75% of the world's solar modules. 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.
As of 2024, Australia has one company producing solar modules: Tindo solar, with a capacity of 160MW per year.
Renewable energy targets
In 2001, the Australian government introduced a mandatory renewable energy target (MRET) designed to ensure renewable energy achieves a 20% share of electricity supply in Australia by 2020. The MRET was to increase new generation from 9,500 gigawatt-hours to 45,000 gigawatt-hours by 2020. The MRET requires wholesale purchasers of electricity (such as electricity retailers or industrial operations) to purchase renewable energy certificates (RECs), created through the generation of electricity from renewable sources, including wind, hydro, landfill gas and geothermal, as well as solar PV and solar thermal. The objective is to provide a stimulus and additional revenue for these technologies. The scheme was proposed to continue until 2030.Australian Government: Office of the Renewable Energy Regulator
After the MRET was divided into large-scale and small-scale goals in 2011 and reductions by the Abbott government, Australia has a goal of 33,000 GWh of renewable energy from large sources by 2020, or 23.5% of electricity.
Subsidy funding The Solar Flagships program sets aside $1.6 billion for solar power over six years. The government funding is for 4 new solar plants that produce coal plant scale power (in total up to 1000 MW – coal plants typically produce 500 to 2,000 MW). This subsidy would need additional funding from the plant builders and/or operators. As a comparison Abengoa Solar, a company currently constructing solar thermal plants, put the cost of a 300 MW plant at €1.2 billion in 2007. In 2009, the Arizona state government announced a 200 MW plant for US$1 billion.
Projects
List of largest projects Projects with a power rating less than 100 MW are not listed.
StateProject/locationCoordinatesNameplate capacity (MWac)DC capacity