When considering the expansion of solar energy, a major concern is whether households and businesses are adopting the technology at a sustainable rate. This issue is especially critical in regions where government policies and economic incentives play a significant role in influencing decisions.
A recent report by the Australian Energy Council analyzed data from across the country to give a detailed overview of solar adoption trends. This includes the growth in rooftop solar capacity and the integration of battery storage. The report highlights how factors such as government incentives, interest rates, and the availability of solar and battery technologies work together to drive the adoption of renewable energy.
Its findings show that Australia’s rooftop solar capacity continued to expand in the first half of 2024, adding 1,238 MW of new installations. The state of New South Wales led this growth with 427 MW, followed by Queensland and Victoria. However, the report notes a decrease in the pace of new installations compared to previous years, likely due to increased cost of living and rising interest rates.
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The report says battery use, solar energy costs, and solar payback periods are closely linked when it comes to Australia’s renewable energy efforts. It notes that often due to contracts, utility-scale batteries essential for grid stability aren’t fully utilized, which affects their cost-effectiveness. The cost of solar energy also varies with factors such as system size and financing, with high interest rates also a barrier to cost-effectiveness. This extends the payback period for solar investments, especially in areas with less sunlight. The report says understanding these connections is key to optimizing renewable energy integration in Australia.
Based on these insights, the Australian Energy Council recommends a combination of technological advancements and supportive policies tailored to regional needs and economic conditions in order to achieve overall efficacy in the country’s solar adoption efforts.
Read the full report originally published by Australian Energy Council on August 8, 2024.
