Rooftop solar marches on as large scale renewables stranded

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New data from the renewable energy industry highlights just what impact policy certainty – or the lack of it – is having on the small and large scale markets.

Rooftop solar – largely funded by the balance sheets of Australian households and businesses – continues to surge ahead. That’s helped by the fact that federal incentives – which are paid upfront – are locked in by legislation.

This graph below shows the trend in small-scale rooftop solar systems, both residential (below 10kW and in green), and commercial scale systems (between 10kW and 100kW and in blue) over the past year. After sharp falls caused by the winding back of various staste-based feed in tariffs, the deployment of solar by homes and  businesses has steadied, and is now growing solidly.

According to Green Energy Markets, more than 155,000 small-scale solar systems have been added across Australia in 2014, an average of more than 15,000 a month. In October, 16,729 systems were added, or a total of 75MW (the average size if 4.2kW), taking the total for the year to 657MW.

Meanwhile, construction in the large-scale renewable energy market is at a virtual standstill, thanks to uncertainty about the future of the large-scale target, which has caused banking finance to dry up, and its share of generation is also going backwards.

This is partly due to lower wind speeds, and lower hydro production as the incentive to generate more hydro is removed because of the dumping of the carbon price and the fall in the value of LGCs (certificates), due to the policy uncertainty. In October, the share of renewable generation (not including rooftop solar) was 13.1 per cent. This was down from 14.2 per cent in September and 18.3 per cent a year earlier.

In the past month, just four small solar power stations and a small hydro generator were approved in October.

So far this year, it has been a sorry story for new developments. As this graph to the right show, less than 200MW of large-scale renewable plants have been accredited in 2014.

Of these, two plants, Boco Rock wind farm and the Portland wind farm extension, were committed last year, as was the 20MW Royalla solar farm which makes up the bulk of the solar total. The rest of the solar component include rooftop solar projects of more than 100kW, so too big to qualify for the small-scale scheme. Both Portland and Royalla have been supported by other schemes such as the Clean Energy Finance Corporation and the ACT government’s solar auction.

Giles Parkinson

Giles Parkinson is founder and editor of Renew Economy, and of its sister sites One Step Off The Grid and the EV-focused The Driven. He is the co-host of the weekly Energy Insiders Podcast. Giles has been a journalist for more than 40 years and is a former deputy editor of the Australian Financial Review. You can find him on LinkedIn and on Twitter.

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