Australia has reached a landmark milestone in its clean energy transition, with total installed solar capacity surpassing 40 gigawatts (GW) for the first time. The achievement, confirmed by the Australian Energy Market Operator (AEMO), positions Australia as one of the world’s leading solar nations on a per-capita basis.
Rooftop Solar Driving the Numbers
The bulk of the new capacity has come from residential and commercial rooftop installations, which now account for approximately 24GW of the total figure. Queensland continues to lead the country with the highest rooftop solar uptake per household, with close to 40% of detached homes now equipped with panels.
New South Wales and Victoria have also recorded strong growth, with state government rebate programs helping drive installations in urban and regional areas alike.
Large-Scale Solar Filling the Gap
Utility-scale solar farms have contributed the remaining capacity, with over 80 large-scale projects now operational across the country. The Renewable Energy Zone (REZ) framework, now active in NSW, Queensland and Victoria, has been credited with accelerating project approvals and grid connection timelines for developers.
Grid Integration Challenges
AEMO has flagged ongoing challenges associated with managing high levels of variable renewable energy on the grid. Midday solar generation now regularly exceeds total demand in South Australia, leading to curtailment events and occasionally negative wholesale electricity prices.
“The 40GW milestone is a remarkable achievement for Australian households and businesses who have invested in solar. The challenge now is ensuring the grid can capture and dispatch that energy when it is needed most.” — AEMO spokesperson
What This Means for Electricity Bills
Households are increasingly pairing solar with battery storage to maximise self-consumption and reduce reliance on the grid during peak evening periods when electricity prices are highest.
Looking Ahead
Industry body the Clean Energy Council projects Australia will reach 60GW of total solar capacity by 2028, driven by continued cost reductions in panel technology and growing demand for energy independence.