The end of 2022 saw a cumulative 29.7 GW and a total of over 3.36 million PV installations in Australia, according to the recently released IEA Photovoltaic Power Systems Programme (PVPS) Annual Report 2022.
According to the report, there was a pull back in the Australian PV market in 2022 with early estimates indicating close to 4 GW of solar was installed, after 5 GW in 2021.
Average residential solar PV system prices saw an increase, to more than AU$1.10 per Watt after subsidies, or around AU$1.55 per Watt on average without government subsidy, due to supply chain challenges and growing international demand.
The average system size in the sub-100 kW market grew further to over 9 kW/system, reflecting both the growth in commercial installations, and the growth in the typical size of residential systems, as householders prepare their homes for future addition of batteries and electric vehicles.
This year is expected to see stability in rooftop solar – with some growth in commercial and industrial installations. The nation’s economic fundamentals for residential and commercial PV are outstanding, with Australia’s high electricity prices and inexpensive PV systems meaning payback can commonly be achieved in three to five years.
Commercial PV deployment continues to grow and corporate interest in solar PPAs is building. New utility-scale solar capacity additions were relatively stable in 2022 at 1.7 GW as the investment market navigates regulatory challenges and transmission limitations.
However, without a national incentive to support large scale solar deployment, state governments are acting to improve transmission networks.
There is a growing awareness that renewable energy is the least cost source of new-build electricity, and will soon outcompete Australia’s existing generation fleet that are progressively needing refurbishment or replacement.
The Australian storage market also remained strong in 2022, with the Clean Energy Regulator now tracking and reporting battery installations. Over 19,000 new batteries were installed with small scale solar systems in 2022, increasing the total number of batteries installed to upwards of 60,000 by the end of 2022.
The Australian storage market remains favourably viewed by overseas battery/inverter manufacturers due to its high electricity prices, low feed-in tariffs, excellent solar resource, and the large uptake of residential PV.
To view the report click here.
