Rooftop Solar to Overtake Coal as Australia's Dominant Power Source
In a groundbreaking shift towards renewable energy, rooftop solar is on track to surpass coal as Australia's principal source of electricity generation capacity. This paradigm shift is underscored by the rapid acceleration of solar installations, facilitating the steady decline of coal-based power.
Key Findings
According to a report by industry group SunWiz, Australia now boasts over 20,000 megawatts of small-scale solar capacity installed on residences and business premises.
SunWiz forecasts that solar capacity will eclipse coal-based generation in April 2023, aligning with the closure of AGL's Liddell coal-fired plant in New South Wales.
Highlighting Australia's significant embrace of solar, almost one-third of its residents now own a solar system, with new installations averaging 300,000 per year.
Australia's Solar Leadership
Warwick Johnston, SunWiz's Managing Director, stated that when considering both small and large-scale projects, solar has already claimed the title of Australia's primary electricity source by capacity. "Solar energy is already Australia's largest fuel source for electrical power in Australia," Johnston remarked. "Australian rooftops now host over 20 gigawatts of solar power. This monumental achievement has been supported by the nation's thriving solar industry."
Furthermore, he emphasized the affordability of solar systems in Australia compared to other nations, attributing this factor to the country's leadership in solar adoption per capita.
The Current Energy Landscape
Despite solar's impressive growth, coal continues to generate the bulk of power. Figures from the Australian Energy Regulator (AER) reveal that coal supplied approximately 70% of the power in the national electricity market (NEM) up to June 30. In contrast, rooftop solar contributed 8.4%, and utility-scale solar added 4.9%. The market share of wind energy stood at 12% for 2021-22.
Transition from Coal to Solar
The AER noted the severe challenges facing coal-based power plants due to the soaring rise of solar. These stations struggle to compete with solar during peak daylight hours. As a result, many are forced to significantly curtail their production, leading to increased operational costs and reduced reliability. The AER's energy market report also highlighted how the influx of grid and rooftop solar over recent years has dramatically reshaped electricity prices and the demand for base-load coal generation.
Future Outlook
As the global and local push towards decarbonization gains momentum, many of the NEM's 16 remaining coal-fired stations are projected to shut down sooner than previously expected. This includes Australia's most massive power plant, the 2,880MW Eraring, scheduled for closure in 2025, and Yallourn in Victoria, set to close in 2028.
Australia is witnessing a transformative phase in its energy landscape. The rapid adoption and expansion of rooftop solar signify not only a technical and economic transition but also a cultural shift, signalling the nation's resolute march towards a sustainable future.
Source: ABC News, Posted 1 Mar 2023