Australia CER: Rooftop Solar Exceeds 1GW for First Time in Q2

en.Wedoany.com Reported - The Clean Energy Regulator's (CER) latest quarterly carbon market report shows that Australia's second quarter (April to June) set new quarterly records for rooftop solar, small-scale battery storage installations, and large-scale solar investment, indicating that the energy transition is accelerating.

In the second quarter, rooftop solar installations exceeded 1 gigawatt (GW) for the first time, breaking the previous quarterly record of 942 megawatts (MW) set in the fourth quarter of 2023. Large-scale solar projects reaching final investment decision (FID) totaled 1.8 GW this quarter, marking the strongest quarter since 2022 and the best performance for utility-scale solar investment since the CER began tracking FIDs.

Small-scale battery installations hit an all-time high in the second quarter, with over 111,000 approvals and an installed capacity of 3.6 gigawatt-hours (GWh). Large-scale batteries also continued to expand, with 4.2 GWh of storage capacity reaching FID or commencing operations in the second quarter of 2026.

CER Acting Chair Carl Binning said the transition is accelerating, with sustained growth and record outcomes across the schemes and markets administered by the CER, from rooftop solar and home batteries to large-scale solar investment.

Renewable energy generation accounted for approximately 42% of generation in the National Electricity Market (NEM) this quarter, up from 37% in the same period last year. The CER attributes the growth primarily to rapidly declining battery storage costs and the continued progress of projects supported by the Capacity Investment Scheme (CIS).

Of the large-scale solar projects reaching FID, 881 MW came from projects supported by the Commonwealth government's revenue underwriting scheme, including Edify Energy's adjacent 300 MW Guthrie's Gap and Smoky Creek hybrid solar and battery projects in Queensland.

The CER also noted that the Commonwealth government's Cheaper Home Batteries Program has unlocked demand for small-scale renewables. By the end of the first year of the rebate program, approved storage capacity reached 12.4 GWh, covering more than 438,000 installations, with over 500,000 applications received by mid-August.

A surge in installation activity ahead of the May 1 scheme reforms contributed to the "exceptionally strong" rooftop solar installations this quarter. In April, over 80% of small-scale solar installations were completed alongside batteries, showing households accelerating combined solar and battery installations ahead of the policy changes. After the reforms took effect, demand for home batteries remained strong, though average battery capacity fell from 36 kilowatt-hours (kWh) in April to approximately 23 kWh in May and June, indicating that the adjusted incentive settings reduced demand for larger-capacity battery systems.

The average installed size of rooftop solar systems in the second quarter was 10.5 kilowatts (kW), remaining above 10 kW for the past four quarters. Approvals for medium-scale commercial and industrial renewable energy projects, however, were below historical averages.

This is expected to change in the coming months. The Australian government has expanded eligibility under the Small-scale Renewable Energy Scheme to systems up to 1 MW, with an implementation date of October 1, 2026, subject to the relevant regulations being in place by then. Binning said expanding the scheme from October will help businesses, farmers, and community organisations install medium-scale solar and reduce energy costs.