Australia Solar Power Market 2026 | Size, Share,Trends, Analysis & Forecast by 2034

Market Overview

The Australia solar power market size reached USD 9.6 Billion in 2025 and is expected to grow to USD 33.9 Billion by 2034, with a forecast period from 2026 to 2034. The market is projected to expand at a CAGR of 15.00%. Growth is driven by supportive government policies, environmental awareness, technological advancements, and increasing adoption across residential, commercial, and utility segments. Falling system costs and evolving grid infrastructure also contribute to market expansion.

How AI Is Reshaping the Future of Australia's Solar Power Market:

• AI-powered energy management systems optimize solar panel output and battery storage integration, improving energy efficiency and reliability.
• Government initiatives such as the Small-scale Renewable Energy Scheme (SRES) facilitate easier adoption of smart solar technologies, enhancing consumer access.
• Companies like Green Gold Energy are integrating AI for advanced solar farm management, including projects involving significant battery storage capacities, supporting grid stability.
• AI-driven predictive maintenance reduces downtime in solar farms, cutting operational costs and extending equipment life.
• Smart grid technologies employing AI enable better grid decentralization and congestion management, critical for Australia's high solar penetration regions.
• AI assists in the design and operation of solar-powered microgrids for remote and indigenous communities, enhancing energy sovereignty and sustainability.

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Market Growth Factors

Australia benefits from one of the highest solar irradiance levels globally, with daily solar energy ranging from 4 to 6 kWh/m². This geographic advantage, particularly in states like Queensland, Western Australia, and the Northern Territory, supports efficient photovoltaic (PV) and concentrated solar power projects. The expansive landmass allows decentralized solar energy installations, reducing transmission losses and attracting substantial investments, positioning the country as a global leader in solar energy potential.

The cost of solar photovoltaic technology in Australia has significantly decreased due to technological advances, increased global manufacturing scale, and market competition. This cost decline has lowered the levelized cost of electricity (LCOE) from solar, making solar power more economically competitive with traditional coal and gas sources. Innovations such as bifacial modules and tracking systems enhance performance and return on investment, further accelerating adoption across commercial and residential sectors.

Corporate demand in Australia for renewable energy is rapidly increasing, fueled by ESG mandates, carbon-neutral pledges, and investor expectations. Major corporations, spanning from mining to technology, are securing renewable energy through solar installations and power purchase agreements (PPAs). These efforts not only reduce operational costs but also strengthen green credentials, align with sustainability reporting standards like TCFD, and support the broader energy transition beyond government and residential sectors.

Market Segmentation

Type Insights:

• Solar Photovoltaic (PV)
• Concentrated Solar Power (CSP)

Deployment Insights:

• Utility
• Non-utility

Regional Insights:

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

Key Players

• Green Gold Energy
• SunCable
• Capral Aluminum
• Tindo Solar

Recent Development & News

• August 2025: The Australian government approved a $19bn solar project called the Australia-Asia Power Link to export 6 GW of renewable energy, with one-third transmitted to Singapore. The 12,000-hectare solar farm in Northern Territory is set to create 14,300 jobs and showcase Australia's leadership in renewable energy with strict environmental protections.
• August 2025: Capral Aluminum partnered with Tindo Solar to enhance Australia's renewable energy sector. Capral will supply extruded aluminum for Tindo's Australian-made solar panels and support Tindo's planned Gigafactory, which aims to produce up to 7,000 solar panels daily and create 250 jobs.
• August 2025: Increasing rooftop solar adoption has been noted with 20 GW of total rooftop solar photovoltaic capacity and over 1 million installations in Queensland alone. The rise in behind-the-meter battery installations, totaling 57,000 units, highlights growing energy storage integration supporting grid stability.

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