Solar power in Australia

Solar energy plays a crucial role in Australia's electricity generation. By March 2025, the nation had installed more than 4.09 million solar photovoltaic (PV) systems, collectively providing a capacity of 40.6 GW. In 2024, solar power contributed 19.6% (46.7 TWh) to the electricity produced within the National Electricity Market and the South West Interconnected System.

Since 2018, the expansion of solar PV installations has been rapid, shifting Australia from a relatively slow adopter to a world leader, now possessing the highest solar capacity per person at over 1.4 kW.

Between 2009 and 2011, installed PV capacity increased by a factor of ten, then quadrupled again by 2016. The country’s first commercial-scale photovoltaic facility, the 1 MW Uterne Solar Power Station, commenced operation in 2011. Declining costs for photovoltaic technology resulted in solar energy becoming less than half the cost of grid electricity by 2013.

Installations by type

	Off-grid (MW)	Grid-connected distributed (MW)	Grid-connected centralized (MW)	Total (MW)
2015	173	4,580	356	5,109
2016	210	5,329	446	5,985
2017	247	6,145	740	7,132
2018	284	8,030	3,272	11,586
2019	303	10,396	5,701	16,400
2020	330	13,577	6,840	20,748
2021	360	16,867	8,553	25,781
2022	397	19,703	10,286	30,387
2023	446	23,169	11,016	34,631

In 2018, the dominant portion of installed solar PV capacity consisted of grid-connected distributed systems totaling 8,030 MW. These encompass rooftop solar installations across residential (<9.5 kW), commercial (9.5–99.9 kW), and industrial (100 kW–5 MW) categories. Utility-scale ground-mounted solar plants (>5 MW) accounted for 3,272 MW under grid-connected centralized installations. Off-grid solar PV systems represented the smallest segment at 284 MW.

Both rooftop distributed and large-scale utility solar sectors experienced significant acceleration in growth during 2018. By the end of that year, Australia had deployed approximately 1.96 million residential and 78,000 commercial or industrial rooftop solar units—totaling around 2.04 million systems. More than 200,000 new installations were added in 2018 alone with comparable expansion expected for 2019. Australia leads worldwide in residential solar adoption with penetration exceeding 20% of households.

By early 2020, rooftop solar capacity expanded to 10.7 GW spread across roughly 2.4 million systems. This figure grew further to reach approximately 13 GW by 2021. To maintain grid reliability and support functions such as low voltage ride-through and grid assistance, new solar inverters and battery technologies are increasingly necessary. Electrical installations must adhere to AS/NZS 3000 Wiring Rules, which restrict unlicensed assembly to extra low voltage configurations below 50 V AC or 120 V DC.

Solar resource potential

Australia benefits from an extensive solar energy resource that enables significant energy production on a large scale. The country's arid climate combined with its geographical position results in substantial solar radiation advantages. During winter, most regions receive more than per square meter daily, with northern areas experiencing levels above . The highest photovoltaic (PV) generation prospects are found in Western and Northern Australia. Insolation intensities here exceed those typical in Europe, Russia, and much of North America, aligning more closely with desert regions across Africa, the southwestern United States, Mexico, and parts of South America. Nevertheless, the zones with the greatest solar exposure tend to be situated far from major urban centers.

Rooftop solar capacity potential

Research conducted by the Institute for Sustainable Futures alongside the School of Photovoltaic and Renewable Energy Engineering (SPREE) at UNSW estimates Australia's rooftop solar capacity could reach 179 GW. As of late 2018, installed rooftop solar systems amounted to slightly above 8 GW.

Rooftop solar potential by category (Australian planning zones)

Category of rooftop PV system	Potential capacity (GW)
Residential	96.0
Rural / Primary production	33.9
Industrial / Utilities	19.0
Commercial / Business	9.3
Special use	6.7
Mixed use	4.0
Community use	3.9
Unknown	2.2
Conservation / National park	2.1
Recreational / Open space	1.7
Transport / Infrastructure	0.6

Despite Australia's prominent position in solar adoption globally, only around 5% of this rooftop solar potential had been tapped by mid-2019. The combined theoretical annual output from rooftop solar installations could reach approximately 245 TWh, surpassing the nation's current electricity consumption of just under 200 TWh per year.

Financial rebates

Since 2008, multiple incentive schemes have encouraged the uptake of solar technology. The Australian Government’s Solar Homes and Communities Plan provided rebates up to A$8,000 for residential solar panel installations. Educational institutions were eligible for grants as high as A$50,000 to install 2 kW solar systems; this initiative led to over 2,870 schools adopting solar panels within four years.

Additional financial support comes through Small-Scale Technology Certificates (STCs), which effectively reduce the cost of solar systems by roughly 25–30%, bringing the price per watt close to one Australian dollar. Australia is segmented into four zones for STC allocation, with certificates awarded per kilowatt according to geographic location. These certificates are planned to be phased out by 2030.

In Victoria, homeowners and renters can access rebates up to $1,888 combined with an interest-free loan matching the rebate amount to facilitate Solar PV installation.

Some states offer further incentives targeting the installation of solar battery systems, solar hot water units, and wind energy solutions.

Feed-in Tariffs and Direct Incentives

Several Australian states have established programs to encourage the uptake of solar photovoltaic (PV) systems by enabling homeowners to install solar panels and sell surplus electricity back to energy retailers through feed-in tariff (FIT) schemes. These initiatives differ in terms of tariff rates, whether payments are based on net or gross electricity exports, duration of payments, installation capacity limits, and customer eligibility. The majority of state-based tariffs operate on a net export basis, whereas environmental organizations have advocated for gross feed-in tariffs.

In March 2009, the Australian Capital Territory (ACT) introduced a gross feed-in tariff offering 50.05 cents per kilowatt-hour for installations up to 10 kW, and 40.04 cents per kilowatt-hour for systems sized between 10 kW and 30 kW. These payments, guaranteed over a 20-year period and disbursed quarterly according to energy production, were subsequently reduced before the program concluded upon reaching its capacity limit.

South Australia implemented a solar feed-in tariff targeting residential users alongside an educational campaign that facilitated the installation of solar PV on prominent public facilities such as Adelaide Airport, the State Parliament building, the Museum, the Art Gallery, and numerous schools. In 2018, Queensland launched the Affordable Energy Plan, which provides interest-free loans for solar panel and battery storage installations to accelerate adoption.

In 2008, South Australian Premier Mike Rann allocated $8 million toward installing solar panels on the Goyder Pavilion at the Royal Adelaide Showgrounds—recognised as the largest rooftop solar array in Australia—earning it official status as a "power station." South Australia remains the national leader in household solar adoption per capita.

Estimating Daily Energy Output

The daily electricity generation per kilowatt of installed solar capacity can be approximated using average peak sunlight hours. For instance, Sydney experiences roughly 4.5 to 5 peak sun hours daily throughout the year. Consequently, a 10 kW solar system in Australia is expected to generate around 50 kWh each day (10 kW multiplied by 5 hours).

Supply Chain

More than 90% of solar panels sold within Australia are produced in China, which accounts for approximately 75% of global solar module manufacturing. Despite international initiatives aimed at diversifying production sites, concerns about supply chain security persist due to increasing photovoltaic demand. Disruptions from natural disasters, the COVID-19 pandemic, and geopolitical conflicts have highlighted risks associated with heavy dependence on Chinese imports. While nations such as the United States, European Union members, and India are expanding domestic manufacturing capabilities, their output is unlikely to fulfill either their own or Australia's market requirements fully.

As of 2024, Australia hosts a single solar module manufacturer—Tindo Solar—with an annual production capacity of 160 MW.

Renewable Energy Targets

Australia introduced a mandatory renewable energy target (MRET) in 2001 with the objective that renewables would contribute 20% of electricity supply by 2020. This target aimed to elevate renewable generation from an initial level of 9,500 GWh to 45,000 GWh within that timeframe. The MRET mandates electricity retailers to purchase renewable energy certificates (RECs) derived from technologies including wind, hydroelectricity, landfill gas, geothermal energy, solar PV, and solar thermal systems—thus providing financial support for these sectors. Originally designed to extend until 2030, the scheme was later divided in 2011 into large-scale and small-scale components.

Following reductions enacted under the Abbott government, Australia's revised goal targeted generating 33,000 GWh from large-scale renewable sources by 2020, equivalent to approximately 23.5% of total electricity consumption.

Subsidy funding

The Solar Flagships initiative dedicates $1.6 billion across six years to support solar power, financing the construction of four solar facilities with a total capacity reaching up to 1000 MW—on par with coal-fired stations producing between 500 and 2,000 MW. This government-backed subsidy mandates supplementary capital contributions from the developers or operators of these plants. For comparison, Abengoa Solar estimated the cost of a 300 MW installation at €1.2 billion in 2007, while Arizona announced a 200 MW project valued at US$1 billion in 2009.

List of largest projects

Projects with capacities below 100 MW are not included.

... [table continues with similar entries for other major solar farms]

State	Project/location	Coordinates	Nameplate capacity (MWac)	DC capacity (MWp)	Voltage (kV)	Commissioning	LGA	Company	Notes
NSW	New England Solar		520	400		2023	Armidale	ACEN Australia	Photovoltaic
Qld	Western Downs Green Power Hub			400	275	2023 April	Chinchilla	Neoen	Photovoltaic, single-axis tracking
Vic	Glenrowan West Solar Farm			149		2020 December	Rural City of Benalla	Wirtgen Invest	Photovoltaic, single-axis tracking; 373,248 modules spanning 323 hectares adjacent to the Hume Highway between Benalla and Glenrowan.
NSW	Limondale Solar Farm		313	349	220	2020 January	Balranald Shire	Innogy	Photovoltaic with single-axis tracking system
NSW	Darlington Point Solar Farm		275	333	330	2020 November	Murrumbidgee Council	Octopus Investments and Edify Energy	Photovoltaic, single-axis tracking; initially developed by Solar Choice.
SA	Bungala Solar Power Farm		220	276	132	2018 May	City of Port Augusta	Reach Energy	Photovoltaic utilizing single-axis tracking technology
NSW	Sunraysia Solar Farm		200	228	220	2020 November	Balranald Shire	John Laing Group	Photovoltaic with single-axis tracking configuration
NSW	Wellington Solar Farm		174	213	132	2020 November	Dubbo Regional Council	BP Lightsource	Photovoltaic employing single-axis tracking

Australian Capital Territory

A solar facility generating 20 MWp was constructed on a 50-hectare site in Royalla, located south of Canberra. Equipped with approximately 83,000 photovoltaic panels, it provides electricity to around 4,400 residences. Inaugurated on 3 September 2014, it was the inaugural solar plant within the Australian Capital Territory and held the title of Australia's largest solar installation at that time. The project was developed by the Spanish firm Fotowatio Renewable Ventures (FRV).

New South Wales

Solar farms situated in New South Wales yield notably higher revenues relative to their size when compared to other states. Hanwha Group#Hanwha Energy Australia is advancing two additional solar farms designed to supply power for 50,000 households. In 2021, Amp Energy obtained financing for a 120 MW solar development within New South Wales.

Northern Territory

In the Northern Territory, 30 solar concentrator dishes are installed at three sites: Hermannsburg, Yuendumu, and Lajamanu. These facilities, developed by Solar Systems with federal government assistance, have a combined capacity of 720 kW and generate approximately 1,555,000 kWh annually. This output helps displace around 420,000 liters of diesel fuel, resulting in a reduction of 1,550 tonnes of greenhouse gas emissions.

The project, valued at A$7 million, utilized Solar Systems' CS500 concentrator dish technology and was partially financed through grants from both Australian and Northern Territory government programs under the Renewable Remote Power Generation initiative. It earned an Engineering Excellence award in 2005.

Moreover, the Federal Government has backed the installation of over 120 small-scale independent solar systems within remote indigenous communities through Bushlight, a branch of the Centre for Appropriate Technology (Australia). This program combines sophisticated demand-side management with interfaces designed for ease of use.

Queensland

By 2018, Queensland had either completed or was constructing solar farms exceeding 2 GW in total capacity.

The Clare Solar Farm, with a capacity of 100 MW, is situated roughly 35 km southwest of Ayr and commenced grid exports in May 2018.

The Kidston Solar Project, producing 50 MW AC power, occupies the former Kidston Gold Mine site as the initial phase of a planned hybrid solar and pumped hydro storage development. This project is owned by Genex Power and was built by UGL.

Construction of the Lilyvale Solar Farm—a 130 MW AC facility—is underway near Emerald. Spanish companies GRS and Acciona are executing this project under an EPC contract awarded to Fotowatio Renewable Ventures (FRV), with commercial operations anticipated by late 2018.

The Hamilton Solar Farm, a 69 MW DC single-axis tracking installation located north of Collinsville, has been operational since July 2018. It is jointly owned by Edify Energy and Wirsol.

Two additional projects by Edify Energy in Collinsville—the 60 MW Hayman Solar Farm and the 180 MW Daydream Solar Farm—were scheduled to come online toward the end of 2018.

Near Barcaldine, the Barcaldine Solar Farm comprises two single-axis tracking units, each rated at 10 MW AC.

South Australia

South Australia's inaugural grid-scale solar facility is the Bungala Solar Power Project near Port Augusta. Stage 1 delivers 110 MW and benefits from a power purchase agreement with Origin Energy.

Sundrop Farms operates a concentrated solar power plant rated at 40 MW that began operation in 2016. Additionally, a floating solar photovoltaic array producing 3.5 MW is installed at the Jamestown wastewater treatment facility.

The largest rooftop solar PV installation in South Australia belongs to Yalumba Wine Company across its Barossa sites, totaling 1.39 MW capacity and generating roughly 2,000 MWh annually. Other notable rooftop systems include those at Flinders University (1.8 MW), Adelaide Airport (1.17 MW), and Adelaide Showground (1 MW)—the latter being Australia's first photovoltaic system to reach this scale.

In November 2017, the state government invested in renewable energy projects such as a $13.9 million solar PV and battery microgrid at an Adelaide distribution center developed by Planet Arc Power and Schneider Electric. This system integrates 5.7 MW of solar generation with 2.9 MWh of energy storage. The University of South Australia also planned a 1.8 MW solar PV array for its Mawson Lakes campus. Heathgate Resources proposed a relocatable solar PV unit rated at 1 MW coupled with battery storage to complement an on-site gas facility.

In 2019, AGL commissioned a ground-mounted solar farm at Port Bonython with a capacity of 2.12 MW for Santos Limited.

The Aurora Solar Thermal Power Project near Port Augusta was cancelled in 2019 before completion.

South Australia occasionally produces more solar electricity than its demand requires; however, exports from rooftop solar are capped at either 1.5 kW or managed by grid operators. Since September 2020, all newly installed systems must adhere to low voltage ride through capabilities and remote disconnect standards.

Victoria

The planned 100 MW PV Mildura Solar Concentrator Power Station, originally targeted for completion in 2017, has been discontinued. This project intended to become the largest and most efficient solar photovoltaic facility globally by concentrating sunlight 500-fold onto solar cells, delivering exceptionally high output and potentially supplying electricity to more than 45,000 households without emitting greenhouse gases.

Victoria's inaugural large-scale solar installation is the Gannawarra Solar Farm, a 60.0 MW DC single-axis tracking system located west of Kerang in the state's northwest region.

Located near Robinvale in the Sunraysia area, the Bannerton Solar Park features an 88 MWAC DC single-axis tracking setup. It contributes up to 88 MW to the National Electricity Market (NEM) and is funded by the Clean Energy Finance Corporation alongside Hanwha Energy Australia, the parent entity of Nectr.

Western Australia

Western Australia's pioneering large-scale solar facility, the Greenough River Solar Farm situated at Walkaway, approximately 70 km southeast of Geraldton, commenced operations in October 2012. It comprises 150,000 solar panels with a total generation capacity of 10 MW. The Emu Downs Solar Farm, launched in March 2018 with a capacity of 20 MW and co-located with the Emu Downs Wind Farm, now holds the title of the largest solar farm in Western Australia.

The state’s most extensive rooftop solar photovoltaic installation was finalized in 2021 by Solgen and AGF Electrical at Ellenbrook city shopping centre, boasting a capacity of 2.8 MW.

The proposed Asian Renewable Energy Hub seeks to integrate both solar and wind energy sources to produce up to 26 gigawatts of power, primarily for green hydrogen manufacturing.

Solar cities program

The Solar Cities initiative serves as a pilot project designed to encourage the adoption of solar energy, implementation of smart meters, and promotion of energy-saving practices within Australian urban centers such as Townsville, Queensland.

Renewable Energy Master Plan 2030

Sydney Council has set an objective for the city to operate entirely on renewable energy by the year 2030. Announced in 2014, this strategy’s comprehensive plans are publicly accessible and were honored with the 2014 Eurosolar award under the category "Towns/municipalities, council districts and public utilities."

Statistics

Development of solar power capacity in Australia

Year	Capacity (MW)	Watts per capita	Electricity generation %
2010	510	23	0.4%
2020	20,741	809	9.0%
2023	34,234	1,287	17.1%

See also

• Australia-Asia Power Link
• Building-integrated photovoltaics
• Centre for Appropriate Technology (Australia)
• List of countries by electricity production from renewable sources
• List of renewable energy topics by country
• List of solar farms in South Australia
• Australian Renewable Energy Agency

External links

• Australian Renewable Energy Agency-supported solar projects
• Interactive Solar PV map for Australia
• Bureau of Meteorology’s daily solar radiation map for Australia
• Brumby’s initiative to connect Victoria with solar power. The Age. 17 June 2008.