Australia Distributed Energy Market Size, Share, Report 2025-2033

Market Overview

The Australia distributed energy market was valued at USD 7.3 Billion in 2024 and is expected to grow to USD 19.9 Billion by 2033. The market growth is supported by rising electricity prices, government incentives, and falling costs of renewable technologies. Increased uptake of rooftop solar and battery storage, along with advances in grid modernization, virtual power plants, and peer-to-peer trading, are accelerating the decentralization of the energy sector. Regulatory reforms aimed at boosting renewable integration and energy flexibility further drive this expansion. The forecast period for this market spans from 2025 to 2033 with a CAGR of 10.6%.

How AI is Reshaping the Future of Australia Distributed Energy Market

• AI-powered virtual power plants (VPPs) optimize distributed energy resource aggregation, enhancing grid stability and reducing dependence on fossil fuels.
• Machine learning algorithms enable dynamic pricing and predictive maintenance, improving energy efficiency and grid responsiveness.
• AI-based smart home and IoT ecosystem integration allows consumers real-time control of energy usage, optimizing consumption and reducing carbon footprints.
• Advanced AI analytics support peer-to-peer energy trading platforms, facilitating local energy sharing and minimizing transmission losses.
• Government-backed digital infrastructure investments incorporate AI for real-time energy monitoring and automated grid control systems.
• AI-driven consumer insights and behavior research help tailor energy solutions, increasing adoption rates of solar and battery storage.

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Australia Distributed Energy Market Growth Factors

Individual rooftop solar installations have been the major factor in the rapid increase in solar PV capacity in Australia, added to falling prices, government subsidies such as the Victorian Solar Homes Scheme, and the rising cost of electricity, leading to rapidly growing demand from residential and commercial consumers. In 2022-23, Australia's total net energy consumption increased by 2% to 23294 PJ. Renewable energy generation was 325 PJ, or 33%, of electricity generation. Solar generation grew 21% to 151 PJ, with high demand due to rising household electricity consumption and the greater reliability and energy security offered by battery storage.

Battery energy storage systems (BESS) improve as costs reduce, lifespans improve, charging and discharge rates improve, and integration with home energy management systems improves so demand increases and solar batteries consequently install to store excess household solar generation. In 2024 Australia added 28262 solar batteries. This is a 4.9% increase beyond 2023. There are 121551 registered hybrid systems, representing 3% of Australian solar users. Battery storage allows for steady energy output, alleviating the load on the energy networks and providing energy reliability to users during peak times and when out of power.

Government programs are an important driver to the market. The Australian Energy Market Operator (AEMO) and the Energy Security Board (ESB) completed a DER (Distributed Energy Resources) plan. The plan transitions to a two-way energy market. The market includes rooftop solar, battery storage, electric vehicles and demand responsive appliances. Federal and state government rebates like South Australia's Home Battery Scheme can help consumers switching to battery storage options pay the upfront costs. Investing in the energy grid's infrastructure including digital technology that enables real-time monitoring, automated control, and time-varying pricing can create a more transparent and consumer-friendly energy grid.

Australia Distributed Energy Market Segmentation

Technology Insights:

• Micro-Turbines
• Combustion Turbines
• Micro-Hydropower
• Reciprocating Engines
• Fuel Cells
• Wind Turbines
• Solar PV

End Use Industry Insights:

• Residential
• Commercial
• Industrial

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

Key Players

• Canopy Power
• Ocean Sun
• Itron
• Jemena

Recent Developement & News

• February 2025: Canopy Power and Ocean Sun launched a 700 kWp floating solar system featuring a 70-meter-wide membrane design that harvests rainwater, aimed at enhancing solar technology use on water bodies and advancing clean energy goals.
• October 2024: Itron, in partnership with Jemena, introduced the Low Voltage Distributed Energy Resource Management System (LV DERMS) in Australia, enabling real-time control of solar power and supporting grid stability, with new solar installations in Victoria required to be DERMS-compatible.
• December 2024: Rising adoption of solar-plus-storage systems in New South Wales, Victoria, and South Australia—driven by state rebate programs—has expanded hybrid system installations, contributing to the overall growth of Australia's clean energy transition.

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