$1.5bn
$XXX.Xm
4,199
74
$XXX.Xm
As Australia looks to a cleaner future, solar power offers a bright alternative to emissions-intensive fossil fuels. Advances in solar photovoltaic (PV) technologies have made solar commercially viable, with China manufacturing most of the world's solar panels. In contrast to small-scale solar – which is covering more Australian homes than ever before – the utility-scale market remains relatively untapped. Buoyed by public sector support, private capital is now flooding into new solar projects and propelling capacity growth. Larger farms are being constructed to generate economies of scale and service industrial firms. Amid vocal consumer and shareholder support for clean energy, businesses are adopting net-zero targets and locking in Power Purchase Agreements (PPAs) with solar generators.In recent years, solar generators have capitalised on inflated wholesale electricity prices and banked healthy profit margins. Revenue is expected to have risen at an annualised 58.9% over the past five years, including an estimated jump of 10.3% in 2022-23, to total $1.5 billion. The lack of material inputs has saved solar generators from high coal and gas prices, which have ballooned since the Russia-Ukraine conflict began. Wholesale electricity markets have been in turmoil – prompting regulatory and government interventions. The National Electricity Market (NEM) was shut down for over a week in June 2022, while the Federal Government implemented temporary caps on domestic coal and gas prices in December 2022.One of the drawbacks of solar power is that it needs the sun to be shining. Energy storage mitigates this problem and firms up volatile output. That's why generators are investing in large lithium-ion batteries and pumped hydro storage facilities. Large renewable hubs are being created to reinforce different generation technologies – combining solar, wind and battery storage.Solar generators face headwinds in the coming years. Erratic wholesale markets are set to continue, as renewable capacity grows and coal-fired generators cease operations. Large-scale Generation Certificate (LGC) markets will also contend with a fixed Renewable Energy Target, which is set at an already-met 33,000 GWh until 2030. Wholesale and LGC prices will have to adjust as more renewable projects become operational. Revenue is projected to increase at an annualised 3.6% over the next five years, coming to an estimated $1.8 billion in 2027-28.
Industry revenue has grown at a CAGR of 58.9 % over the past five years, to reach an estimated $1.5bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 |
---|---|---|
Neoen Australia | 177.2 | |
FRV Australia | 176.7 | |
Wirsol Energy | 90.6 |
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Industry revenue is measured across several distinct product and services lines, including Electricity generation and Renewable energy certificates. Electricity generation is the largest segment of the Solar Electricity Generation in Australia.
More electricity is being generated from large solar farms
Industry firms supply electricity to the wholesale market using large-scale photovoltaic generation systems, or solar thermal systems. Photovoltaic systems with a generation capacity of less than five megawatts are excluded from the industry.
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ANZSIC 2619 - Solar Electricity Generation in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
The large-scale solar capacity is growing. Solid investment is pushing solar generation as a viable alternative to other forms of renewable generation. Private and public sec...
Learn about an industry's products and services, markets and trends in international trade.
Retailers are meeting the Renewable Power Percentage (RPP). Retailers have to source a certain percentage of their electricity from renewable generators, with Large-scale Gen...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Generators need strong sunlight. Large solar farms are located where the sun is bright, to ensure steady output to consumers and businesses. Battery storage is improving the ...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Firms race to expand capacity. Large-scale solar will need to grow significantly to meet the needs of consumers and businesses. Generators are investing heavily in new solar ...
Learn about the performance of the top companies in the industry.
Capacity expansions continue to build momentum. Generators are investing in new, large-scale solar projects to fuel strong consumer and business demand for clean energy.
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Electricity generators face heavy regulation. As part of the electricity supply chain, generators walk a regulatory tightrope to comply with legislation. The Australian Energ...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Inflated wholesale prices boost profit margins. High wholesale prices have meant a big payday for solar generators, with a lack of material inputs averting steep supply costs...
Including values and annual change:
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Key data sources in Australia include:
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The market size of the Solar Electricity Generation industry in Australia is $1.5bn in 2024.
There are 74 businesses in the Solar Electricity Generation industry in Australia, which has grown at a CAGR of 37.6 % between 2018 and 2023.
The market size of the Solar Electricity Generation industry in Australia has been growing at a CAGR of 58.9 % between 2018 and 2023.
Over the next five years, the Solar Electricity Generation industry in Australia is expected to grow.
The biggest companies operating in the Solar Electricity Generation market in Australia are Neoen Australia, FRV Australia and Wirsol Energy
Solar electricity generation and Concentrated solar thermal electricity generation are part of the Solar Electricity Generation industry.
The company holding the most market share in Australia is Neoen Australia.
The level of competition is high and increasing in the Solar Electricity Generation industry in Australia.