With solar power increasingly competitive in Australia, National Programmes that support deployment are drawing to a close, being replaced by initiatives that promote the integration of storage, demand management, load shifting, and grid improvements, among others.
PV research, development, and demonstration are supported at the National, as well as the State and Territory level. In 2023, research was funded by the Australian Renewable Energy Agency (ARENA), the Australian Research Council, and Cooperative Research Centres. ARENA is the largest funder of photovoltaics research in Australia.
Funded by ARENA, ACAP started its second term in 2023 to coordinate solar PV research nationally. ACAP is hosted at UNSW, and stage two will run to 2030, supported by $45 million AUD in ARENA funds and over $10 million in cash from partners.
In 2023, ARENA also funded a host of new research initiatives, with close to $40 million AUD over eight years, under an Ultra Low-Cost Solar program aiming to drive the levelized cost of electricity from large-scale solar down from the current $50/MWhr to below $20/MWhr.
The federal government, under its education ministry, supported an initiative in research acceleration in the area of Recycling and Clean Energy (TRACE) with a program stream on solar technologies. This program has an ambitious goal to move rapidly and establish an innovation ecosystem to get research solutions to market faster.
Engagement in IEA PVPS
Australia is active in all IEA PVPS Tasks, leading as a Co-Operating Agent in Task 12 (Sustainability) and Task 18 (Off-Grid and Edge of Grid PV), with participation supported by ARENA’s international engagement programme.
In 2023, Australia hosted the PVPS Whole-of-Programme meeting, including the Executive Committee (ExCo) and all Tasks meetings. Held in Adelaide with over 100 delegates, this gathering also coincided with the end of the World Solar Car Challenge.
Solar Installations and Market Dynamics Australia had another down year with 3.77 GW of solar installed in total, with most of the decline in utility-scale solar, which is down to 972 MW from a high in 2021 of 1.7 GW (with 2022 recording 1.38 GW). Residential and C&I solar remains strong, with 2.77 GW installed after 2.82 GW last year, following a peak in 2021 of 3.28 GW. Total installed solar capacity is now approximately 34.2 GW.
The decline in solar costs continued, with the average price per watt (after incentives) dropping to $1.05 by December 2023, down from $1.10 in the previous year.
Rooftop solar accounted for an annual average share of total electricity demand generation of around 12%, while large-scale solar projects contributed over 6%, resulting in a combined total of 18% of electricity needs being met by solar throughout 2023. On the final day of 2023, Australia celebrated unprecedented achievements, with rooftop PV in Victoria and South Australia meeting the entire state demand at certain times.
The Australian storage market remained strong in 2023, with the Clean Energy Regulator now tracking and reporting battery installations. Over 23,829 new batteries were recorded as installed with small-scale solar systems in 2023. Australia has now seen 90,160 batteries installed since 2014. The industry reports significantly higher numbers, reflecting a lack of systematic reporting to the Clean Energy Regulator.
The Australian market is favourably viewed by overseas battery/inverter manufacturers due to its high electricity prices, low feed-in tariffs, excellent solar resource, and large uptake of residential PV. Large-scale battery deployments are increasingly called for, as excess solar in the middle of the day results in curtailment, and evening peaks challenge grid capacity.
The total output for the 2022-2023 summer’s rooftop solar was 8,046 GWh, up 19.5% on the same period the previous year. Stability in residential rooftop solar and continued growth in commercial and industrial installations are expected in 2024, with economic fundamentals for residential and commercial PV outstanding. Australia’s high electricity prices and inexpensive PV systems mean payback can commonly be achieved in 3-5 years; a situation that looks set to continue in 2024.
There are increasing calls for large scale, firmed solar and wind projects and PPAs from large energy users, including mining and minerals processing companies, motivated by the low cost of energy from solar that could lead to a turnaround in the decline of utility scale solar installations.
Australia leads globally in PV penetration per capita in 2023, achieving the highest installed PV capacity per inhabitant with 1,296 Wp/capita (up 11% on 2022) in IEA PVPS and surveyed countries:
Australia has thus reached and maintained its position as the leader in installed PV capacity per inhabitant globally.