The Australian solar power industry is experiencing a resurgence with Queensland and New South Wales leading the charge. Recent data reveals that solar installations have not only recovered from the setbacks of 2022 but have also surpassed pre-pandemic levels. The strong market growth is primarily attributed to significant developments in Commercial & Industrial (C&I) and utility-scale solar installations.
Guy Olian, CEO of decarbonisation funder Smart Ease, emphasises the remarkable progress, stating, “We’re witnessing a stunning boom in businesses and not-for-profits installing and funding solar,” stated Guy. “This is being driven by the combination of high electricity prices, falling solar panel costs and organisations seeking to decarbonise their operations. With $0 upfront funding options available, the business case for commercial solar is now stronger than ever. There should be no reason for an organisation not to proceed.”
Factors driving solar industry growth
The revival of the solar industry in Australia can be attributed to several key factors, as outlined below:
Commercial solar surges
The STC Commercial market in Australia is witnessing a surge, with a particular emphasis on systems in the 15-30kW segment. Furthermore, the 10-15kW segment has overtaken the 6-8kW range in popularity, indicating a shift towards smaller commercial solar systems.
QLD and NSW lead the way
Queensland and New South Wales have outperformed previous years, with the 15-20kW and 95-<100kW segments within the STC market being the most popular, accounting for a combined 55% of installations in the past year.
Dominance in utility-scale solar
Queensland and New South Wales are also taking the lead in utility-scale solar installations, representing 42% and 43% of the total solar volume, respectively. Utility-scale solar is experiencing significant growth, with Queensland and New South Wales showing 13% and 11% growth in the last quarter (July to October 2023).
Stronghold in commercial installations
Queensland dominates the sub-100kW commercial installations, holding six of the top ten postcodes in this category. For larger systems (101kW to 5000kW), the suburb of Casula in Sydney’s southwest leads the nation overall.
Australia’s solar power growth
Warwick Johnston, Managing Director of Sunwiz, has commented on the surge in the solar industry, stating, “On average, monthly STC-commercial volumes over 2023 are above those seen in previous years. Recent months indicate substantially higher volumes of STC-commercial systems compared to the same time in previous years. Notably, average system sizes within the STC market have also continued to grow.”
This data underscores the commitment to harnessing the potential of solar energy in Australia and suggests that the industry has not only recovered from the post-pandemic dip of 2022 but has also displayed its trademark resilience. With high electricity prices, falling solar panel costs, and organisations keen to decarbonise their operations, the future of Australia’s solar power industry looks brighter than ever.
About Smart Ease
Smart Ease provides a full suite of payment solutions to secure energy efficiency and smart technologies for businesses and organisations. It delivers competitive rates, fast approval, and a dynamic, responsive experience to offer flexible funding options to suit business goals.
Smart Ease’s unique digital platform provides finance approval for sustainable technologies in just minutes. With over 9,500 projects funded to date, Smart Ease payment solutions help businesses fast-track their ability to acquire and install energy-efficiency and smart equipment – and typically enjoy cash-flow benefits from day one due to the energy costs saved. Visit www.smartease.com.au
SunWiz is a dedicated consultancy offering strategic services to solar businesses and government entities in Australia.
SunWiz empowers solar businesses with the strategic intelligence they need to make informed decisions, provide tools that enhance their customer outreach and sales conversion, and offer services to bridge any gaps in project development.
Local governments and non-solar businesses also turn to SunWiz for assistance in identifying and evaluating solar opportunities within their portfolios.
For more information and to explore how SunWiz can support your solar endeavours, please visit www.sunwiz.com.au.