Australia Solar Power Market to Reach USD 12.9 Billion by 2033 — Driven by Record Rooftop Installations and Energy Storage Integration

Australia Solar Power Market Overview

Market Size in 2024: USD 8.3 Billion

Market Size in 2033: USD 12.9 Billion

Market Growth Rate 2025-2033: 15.87%

According to IMARC Group's latest research publication, "Australia Solar Power Market Report by Type (Solar Photovoltaic (PV), Concentrated Solar Power (CSP)), Deployment (Utlility, Non-utility), and Region 2025-2033", The Australia solar power market size was valued at USD 8.3 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 12.9 Billion by 2033, exhibiting a CAGR of 15.87% during 2025-2033.

How AI is Reshaping the Future of Australia Solar Power Market

• Optimizing Solar Farm Operations: AI-powered predictive analytics monitor 20 GW of rooftop solar installations, optimizing energy output and reducing maintenance costs by forecasting equipment failures before they occur.

• Enhancing Grid Management: Machine learning algorithms manage two-way electricity flows across Australia's decentralized grid, minimizing curtailment risks and enabling efficient integration of solar energy into existing infrastructure.

• Accelerating Energy Storage Solutions: AI optimizes battery dispatch schedules for 57,000 behind-the-meter batteries, ensuring stored solar energy is released during peak demand periods to maximize cost savings and grid stability.

• Streamlining Project Development: AI-driven site assessment tools analyze solar irradiance data (4-6 kWh/m2 daily) to identify optimal locations for solar farms, reducing development timelines and improving return on investment for utility-scale projects.

• Powering Virtual Power Plants: Advanced AI platforms coordinate distributed solar and storage systems into virtual power plants (VPPs), creating flexible, responsive energy networks that enhance Australia's renewable energy capacity.

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Australia Solar Power Market Trends & Drivers:

Australia's solar power market is experiencing explosive growth driven by aggressive government support and falling technology costs. The Small-scale Renewable Energy Scheme (SRES) and Small-scale Technology Certificates (STCs) have made rooftop solar accessible nationwide, with 2023 seeing rooftop solar contribute 11.2% to Australia's total electricity supply. New South Wales alone installed 970 MW of new rooftop solar, while Queensland became the first state to surpass one million rooftop installations. The Australian Renewable Energy Agency (ARENA) and Clean Energy Finance Corporation (CEFC) provide critical funding and investment programs that bridge the gap between innovation and commercial viability. Combined with declining costs for solar panels, inverters, and balance-of-system components, these initiatives have reduced the levelized cost of electricity (LCOE) from solar, making it fiercely competitive with coal and gas while accelerating adoption across residential, commercial, and utility segments.

The integration of energy storage systems is transforming Australia's solar landscape by addressing intermittency challenges and enhancing grid reliability. Solar panels generate electricity only during daylight hours, creating mismatches between peak production and consumption periods. Battery storage solutions like the recently approved 108MW solar farm with 91.7MWh battery storage in South Australia store excess daytime energy for use during non-sunlight hours and high-demand periods. With 57,000 behind-the-meter batteries already installed nationwide, advanced storage systems are reducing grid dependency, lowering electricity costs, and supporting grid stabilization in high-solar-penetration regions. Plans for a 200MW solar farm paired with 200MW of battery storage in the Australian Plains region further demonstrate the market's commitment to reliable, consistent power supply. This trend is driving innovation in battery technology, promoting energy independence, and enabling Australia to maximize its abundant solar resources while maintaining energy security.

Corporate renewable energy procurement and the repurposing of decommissioned coal sites are creating new growth avenues for Australia's solar sector. Major corporations across mining, technology, and manufacturing industries are securing clean energy through on-site solar systems and power purchase agreements (PPAs) to meet ESG mandates, carbon-neutral commitments, and investor pressure. Solar power offers predictable long-term pricing that hedges against rising electricity costs while building brand value through sustainability credentials. Simultaneously, numerous decommissioned coal-fired power plants and mining sites in New South Wales and Queensland present unique opportunities for brownfield solar development. These locations offer existing grid connectivity, transmission infrastructure, and trained workforces, reducing development time and costs compared to greenfield projects. Converting old coal assets into solar farms provides a just transition pathway for affected communities, creating jobs in installation, operations, and maintenance while ensuring efficient land reuse. This dual approach—corporate demand plus strategic site repurposing—aligns with Australia's net-zero ambitions and positions solar as the cornerstone of the nation's clean energy future.

Australia Solar Power Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Solar Photovoltaic (PV)

• Concentrated Solar Power (CSP)

Deployment Insights:

• Utility

• Non-utility

Breakup by Region:

• Australian Capital Territory & New South Wales

• Victoria & Tasmania

• Queensland

• Northern Territory & Southern Australia

• Western Australia

Recent News and Developments in Australia Solar Power Market

• September 2025: Australia's Clean Energy Regulator approved 1.5 GW of new renewable energy capacity in Q2 2025, with notable solar projects including the 240MW Wandoan South Solar Farm in Queensland, 190MW Cloudbreak Solar Farm in Western Australia, and 106MW Lancaster Solar Farm in Victoria, bringing cumulative capacity to 952MW.

• September 2025: Charles Darwin University research revealed 89% public support for SunCable's Australia-Asia PowerLink project, a 12,000-hectare solar megaproject in Northern Territory's Barkly region designed to export renewable energy overseas, marking a significant milestone for international solar export ambitions.

• August 2025: JinkoSolar expanded its Australian operations by launching new high-efficiency Tiger series solar panels featuring 22.3% efficiency rates, strengthening the nation's access to advanced photovoltaic technology and supporting the growing demand from residential and commercial sectors.

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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