Surge in rooftop solar PV displaces more fossil fuels

Published by

The ability of rooftop solar PV and solar hot water to displace fossil fuel generation has been underlined by the latest annual review by the Clean Energy Regulator, the body that oversees the federal renewable energy target.

The report says that more than two million installations of rooftop solar PV and solar hot water across the country has the capacity to generate or displace around 6,882 gigawatt hours of electricity a year.

By way of comparison, that is equivalent to a 1,000MW coal-fired power station operating full-pelt, although the impact on generators is far greater than that because solar steals revenue during the day-time period, the most profitable time of generation for fossil fuel plants, and so has caused much more than this to be closed or mothballed.

As this graph below highlights, the contribution in generation from small‐scale rooftop solar PV has trebled in the past three years to 3,766GWh. Combined with other small scale generation such as wind and hydro, this adds up to 4,182GWh. Solar hot water systems have displaced a further 2,700GWh of otherwise required generation.

The CER said this had reduced emissions by 20 million tonnes over the past decade. It is forecast that if the RET stays in place, then it would likely displace 100 million tonnes of CO2-e in the current decade.

The CER says that under the small‐scale component of the RET, some 238,769 small scale renewable energy systems were installed in 2013, taking the total beyond two million. This graph shows the surge in growth in recent years.

In 2013, the greatest number of solar panel installations was in Queensland (36 per cent) followed by New South Wales (17 per cent) and Victoria (16 per cent). In the last year, and despite the reduction in federal incentives and state-based feed in tariffs, an average of 15,460 small generation (mostly solar PV) were installed each month across the country, along with 4,250 solar water heaters.

The CER says the current capacity of accredited renewable energy power stations in Australia is approximately 18,600 megawatts. These power stations are able to generate around 16,000GWh of renewable electricity in a typical year, although this can depend on weather events, including rainfall in catchments that feed into hydro power station storage dams.

Graph 2 shows large‐scale renewable electricity generation increasing since the commencement of the schemes.

ret

Giles Parkinson is founder and editor-in-chief of Renew Economy, and founder and editor of its EV-focused sister site 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.

Giles Parkinson

Giles Parkinson is founder and editor-in-chief of Renew Economy, and founder and editor of its EV-focused sister site 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.

Share
Published by

Recent Posts

Buyer Beware: Carbon credit platforms repeating ills of the past

Claims and promises of carbon offset schemes are falling deep into the category of being…

23 January 2026

“Total transformation of the Australian summer:” Climate change made January heatwaves five times more likely

Australia has just experienced its worst heatwave in six years but it's set to become…

23 January 2026

Shared solar: Labor’s “free power” plan to have daily cap to stop abuse by EV and home battery owners

There will be daily cap on the federal government's Shared Solar free power offer, to…

23 January 2026

“Reduced appetite for solar:” Giant hybrid project slashes PV component by half as it seeks green tick

Developer of what was once hailed as the biggest solar hybrid project cuts PV component…

23 January 2026

“Tallest, Mightiest and Widest:” Fortescue’s unique wind tech sees 30 pct cost savings over traditional towers

Fortescue wind technology company says its turbines will be the "tallest, mightiest and the widest,"…

23 January 2026

Biggest battery on standby as rooftop PV sets stunning new records, meeting 117 pct of state demand

Rooftop solar reaches remarkable 117 pct of state demand in Australia's most advanced renewable state,…

23 January 2026