Australia Solar Power Market Report and Forecast 2025-2034

Australia Solar Power Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia solar power market size witnessed a healthy growth in 2024. Aided by the increasing adoption of residential rooftop solar systems and rising investments in large-scale solar farms, the market is projected to grow at a CAGR of 11.77% between 2025 and 2034.

The Australia solar power market growth is being driven by an increasing demand for clean and renewable energy. As the world moves towards sustainable energy solutions, Australia is capitalising on its abundant sunshine to meet its growing electricity needs through solar power. The country's vast open spaces and high solar irradiance make it an ideal location for solar power generation, which has led to an expansion in both residential and commercial solar installations. With rising concerns over climate change and a strong commitment to reducing carbon emissions, solar power has become a cornerstone of Australia's energy future.

The Australian government has been a significant driver supporting the Australia solar power market expansion, introducing various policies and incentives to encourage the adoption of solar technology. Programmes such as the Small-scale Renewable Energy Scheme (SRES) have provided financial assistance for households and businesses to install solar panels, making it a more affordable option. These government initiatives, combined with a growing public awareness of the environmental and economic benefits of solar energy, have made solar power an increasingly attractive choice for consumers across the country.

The affordability of solar technology has also been a key factor in boosting the Australia solar power market revenue. Over the past decade, the cost of solar panels has dropped significantly, making solar energy more accessible to a wider range of consumers. As the cost of installation continues to decrease, more Australians are embracing solar power as a cost-effective way to generate electricity and reduce reliance on the grid. Additionally, the installation of solar power systems has been increasingly seen as an investment, as it offers long-term savings on electricity bills and an opportunity for energy independence.

The growing awareness of climate change and environmental responsibility has further fuelled the Australia solar power market development. With the country facing the effects of global warming, including extreme weather events and droughts, there is a strong push towards adopting clean energy solutions. Solar power is seen as an effective way to reduce greenhouse gas emissions and transition to a more sustainable energy future. As Australians become more conscious of their carbon footprints, there has been a marked shift towards renewable energy sources, with solar power leading the way.

In addition to residential installations, the Australia solar power market is also experiencing growth in the commercial and industrial sectors. Large-scale solar farms are being developed across the country to provide clean energy to meet the growing electricity demand. These solar farms are particularly important for powering industries and large commercial operations, contributing to Australia’s renewable energy targets. The development of large-scale solar projects not only supports the nation’s transition to renewable energy but also creates jobs and economic opportunities in rural and regional areas.

As per the Australia solar power market analysis, energy storage solutions, such as home batteries, have also gained popularity in the Australian market, further boosting the adoption of solar power. By storing excess solar energy for use during the night or on cloudy days, homeowners and businesses can maximise the benefits of their solar installations and become less reliant on the grid. The introduction of solar battery storage systems has made solar power more reliable and efficient, allowing for greater energy independence and flexibility. This development has been especially significant in remote areas of Australia, where access to the traditional power grid can be limited.

The growing interest in electric vehicles (EVs) and the integration of solar energy with EV charging infrastructure is also shaping the Australia solar power market landscape. As more Australians adopt EVs, the ability to charge these vehicles using solar power further reduces the reliance on fossil fuels and contributes to the country’s broader environmental goals. The combination of solar power and EVs is seen as a win-win solution, as it promotes both cleaner transportation and sustainable energy generation.

Despite the growth and positive outlook for the Australia solar power market, challenges remain. The integration of solar power into the national electricity grid, which was designed primarily for conventional energy sources, poses technical difficulties. To overcome these challenges, Australia is investing in smart grid technologies and improving energy storage capabilities to ensure a reliable and stable electricity supply. Additionally, the need for ongoing policy support and incentives is crucial to maintaining the momentum of solar adoption, particularly as the market matures.

Looking ahead, the Australia solar power market is expected to continue its growth trajectory, supported by advancements in solar technology, favourable government policies, and increasing consumer demand for clean energy. As the country works towards achieving its renewable energy targets, solar power will play a central role in meeting its energy needs while reducing environmental impact. With continued innovation and investment in solar technology, the market is poised to remain a global leader in renewable energy generation. The increasing focus on sustainability and energy independence ensures that solar power will remain a key driver of Australia’s energy future in the years to come.

Market Segmentation

The market can be divided based on solar module, technology, application, and region.

Market Breakup by Solar Module

• Polycrystalline
• Amorphous Silicon Cells
• Monocrystalline
• Cadmium Telluride
• Others

Market Breakup by Technology

• Concentrated Solar Power Systems
• Linear Fresnel
• Parabolic Trough
• Power Tower
• Solar Photovoltaic System
• Mono-Si
• Thin Film
• Multi-Si
• Others

Market Breakup by Application

• Commercial
• Residential
• Industrial

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia solar power market. Some of the major players explored in the report by Expert Market Research are as follows:

• Iberdrola Australia Limited
• Neoen Australia Pty Ltd
• First Solar
• Tindo Operations Co Pty Ltd
• Lightsource bp Renewable Energy Investments Limited
• GEM Energy Australia Pty
• Sunboost Energy Pty Ltd
• Australian Solar Group
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.