Investment Trends Shaping the Australia Distributed Energy Market by 2033

Australia Distributed Energy Market Overview

• Market Size in 2024: USD 7.3 Billion
• Market Size in 2033: USD 19.9 Billion
• Market Growth Rate 2025-2033: 10.6%

According to IMARC Group's latest research publication, “Australia Distributed Energy Market Size, Share, Trends and Forecast by Technology, End Use Industry, and Region, 2025-2033”, the Australia distributed energy market size was USD 7.3 Billion in 2024. Looking ahead, the market is expected to reach USD 19.9 Billion by 2033, exhibiting a CAGR of 10.6% from 2025-2033.

How Innovation and Policy Are Reshaping the Future of Australia’s Distributed Energy Market

• Rooftop solar & battery storage systems are becoming increasingly affordable and performant. These technologies are enabling households and businesses to generate, store, and use their energy, thus mitigating rising electricity prices and enhancing energy autonomy.
• Virtual Power Plants (VPPs) and peer-to-peer (P2P) trading platforms are gaining traction. Aggregating distributed energy resources (DERs) helps stabilize the grid and allows consumers to monetize excess generation. Regulatory reforms are helping these models scale.
• Advances in battery storage tech (longer life, faster charging, better integration with home energy systems) reduce dependence on the grid during peak times or outages, improving reliability and cost efficiency.
• The shift toward grid decentralization is supported by policy as well as technology: Australia is transforming its traditional one-way supply model into a more dynamic, two-way network with better flexibility, digitalization, and consumer participation.
• Rising electricity prices are pushing both households and businesses to seek alternatives. Distributed energy solutions offer more predictable energy costs and reduce vulnerability to wholesale market fluctuations.

Download a sample PDF of this report: https://www.imarcgroup.com/australia-distributed-energy-market/requestsample

Australia Distributed Energy Market Trends & Drivers

• Rapid growth in rooftop solar installations. Declining costs, government incentives, and the appeal of energy independence are boosting uptake among both residential and commercial users. Battery storage is also being adopted more widely to capture and store excess solar energy.
• Increasing demand for VPPs and peer-to-peer trading. Platforms that enable energy sharing and aggregation of DERs are accelerating as the regulatory environment becomes more supportive.
• Advancements in energy storage technologies. Better performance, cost declines, improved lifespan, and integration with home energy management systems are helping storage become a practical part of distributed energy solutions.
• Government initiatives and incentives. Federal and state programs (grants, rebates, etc.) aimed at residential solar, home batteries, microgrids, etc., are lowering cost-barriers and accelerating adoption.
• Decentralization of the grid & modernization. Investments in smart grid infrastructure, digital meters, real-time monitoring, and demand response are helping accommodate DERs and enhance flexibility.

Ask analyst of customized report: https://www.imarcgroup.com/request?type=report&id=33062&flag=F

Australia Distributed Energy Industry Segmentation

The market is segmented in the report by:

Technology Insights:

• Micro-Turbines
• Combustion Turbines
• Micro-Hydropower
• Reciprocating Engines
• Fuel Cells
• Wind Turbines
• Solar PV

End Use Industry:

• Residential
• Commercial
• Industrial

Region:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

Recent News and Developments in Australia Distributed Energy Market

• February 2025: Canopy Power and Ocean Sun unveiled a 700 kWp floating solar system featuring a 70-meter wide membrane design, which integrates with solar + battery + microgrid systems.
• December 2024: Itron launched its Low Voltage Distributed Energy Resource Management System (LV DERMS) in Australia, in collaboration with Jemena. New solar installations in Victoria from October 1, 2024 must comply with DERMS-compatible standards.

Browse Full Report with TOC & List of Figures: https://www.imarcgroup.com/australia-distributed-energy-market

Note:

If you require specific details, data, or insights not included here (e.g. cost breakdowns by state, comparisons with other markets, technology-specific forecasts), I can prepare them for you.

About IMARC Group

IMARC Group is a global market research and consulting firm that delivers data-driven insights and strategic guidance. Their services include market entry & expansion, competitive benchmarking, pricing and cost research, regulatory/licensing support, and analysis across technologies and sectors.