Renewable Energy Surpasses 50% of Australia’s Power Supply

Australia has reached a major milestone, with renewable energy now accounting for over 50% of electricity generation across the National Electricity Market (NEM). Solar — particularly rooftop solar — is leading the charge.

During peak daylight hours, rooftop solar is supplying a majority of electricity demand in several states, reducing reliance on coal-fired generation and lowering wholesale power prices.

What this means for customers:

• More solar in the grid = lower daytime energy costs

• Greater pressure on feed-in tariffs

• Increased value in using your own solar power rather than exporting it

Rooftop Solar in Australia Continues to Grow

Australia remains a global leader in rooftop solar, with millions of homes and businesses already generating their own electricity.

As of late 2025:

• Over 4.3 million solar systems are installed nationwide

• Rooftop solar capacity exceeds 28 GW

• One in three Australian homes now has solar

While new installations remain strong, the market is maturing. The focus is shifting from solar-only systems to battery storage, energy efficiency, and smart energy management.

Battery Storage Is the Fastest-Growing Solar Trend

Battery demand in Australia has accelerated sharply heading into 2026.

More households are installing batteries to:

• Store excess solar instead of exporting it at low feed-in tariffs

• Use solar power at night

• Protect against rising electricity prices

• Prepare for future grid changes

Large-scale batteries are also being deployed across NSW, Victoria, and Queensland to support grid stability and store excess solar generation.

In short: solar plus battery systems are quickly becoming the new standard.

Major Solar Policy Changes Coming in 2026

Free Daytime Electricity Explained

One of the most significant upcoming energy reforms is the proposed “Solar Sharer” initiative, expected to begin in mid-2026.

This policy will require electricity retailers to offer:

• At least three hours of free electricity during peak solar hours

• Access for households without rooftop solar, including renters

The goal is to encourage energy use during the middle of the day, when solar generation is highest.

Why this matters for solar owners:
Homes with batteries and smart energy systems will be best positioned to take advantage of this shift, maximising savings and energy independence.

Utility-Scale Solar and Battery Projects Expand

Australia continues to attract strong investment in renewable energy infrastructure, with new solar farms and battery energy storage systems (BESS) announced across multiple states.

These projects are critical to:

• Supporting the retirement of coal-fired power stations

• Reducing grid congestion

• Ensuring reliable electricity as solar penetration increases

The long-term outlook for solar investment in Australia remains strong.

Challenges Facing the Solar Industry

Despite rapid growth, the industry faces several challenges:

• Grid congestion in high-solar regions

• Reduced feed-in tariffs

• Increasingly complex energy pricing

• Curtailment risks for large-scale solar

These challenges are accelerating demand for batteries, EV chargers, and smarter energy solutions rather than basic solar installs alone.

What This Means If You’re Considering Solar in 2026

For Australian homeowners and businesses:

• Solar power remains one of the most effective ways to reduce electricity bills

• Batteries significantly increase savings and energy control

• Smart energy solutions add long-term value

• Installing now helps future-proof against policy and pricing changes

A professionally designed system tailored to your energy usage is more important than ever.

Final Thoughts: Solar’s Next Chapter in Australia

Australia’s energy transition is no longer theoretical — it’s happening now.

The focus has shifted from simply installing solar panels to optimising how energy is generated, stored, and used. With battery adoption rising and policy changes on the way, 2026 is shaping up to be a defining year for solar in Australia.