The Australian solar industry has grown significantly over the past decade and is expected to continue expanding with new solar farms and residential solar projects going into development all the time. The growth has been largely driven by new large-scale solar farms which have increased industry electricity generation from less than 50 Megawatts in 2014 to over 2,400 Megawatts in 2018. There are plenty of new solar farms planned over the next few years meaning the industry is well positioned to continue growing throughout Australia.
The rapid growth the industry has seen can be largely attributed to generous Government assistance. Various policies, funding and rebates have allowed many firms to cut their development costs and increase profit margins which resulted in a lot of firms entering industry. For large firms looking to install large scale projects, the Australian Renewable Energy Agency and Clean Energy Finance Corporation have helped companies to meet the large upfront costs allowing the projects to go ahead. Many residents have also installed rooftop solar PV systems and solar storage batteries in recent years thanks to Government assistance.
According to IBIS world research, the Australian solar industry is expected to continue growing strongly over the next 5 years beyond 2019*. The growth is anticipated to be driven by continued investment in renewable energy projects with ongoing Government assistance. With ageing coal power stations continuing to shut down throughout Australia as they reach their production age, the need to find alternative energy sources will also continue to rise. New technologies are expected to make solar panels cheaper and more efficient in the future improving the conversion of sunlight into electricity.
As people become more aware of the need to start making the switch to renewable energy combined with Government incentives to go solar, it doesn’t look like the industry will be slowing down anytime soon. To find out more about making the switch to solar, contact one of our solar specialists today.
*J, Aravanis, ‘Solar electricity generation in Australia’, IBIS World industry report D2619b