Why is Solar So Popular in Australia?

With more than 2 million homes, alone, using and generating renewable, solar electricity in Australia as of September 2019, it is undeniable that the country is one of the top solar energy producers in the world. They have been nothing but continuously growing since 2009. You might be wondering, though. Why is the solar industry so big in the land down under?

The cost of solar panels has reduced significantly over the years, which made the technology more accessible to a lot of people. After all, who wouldn’t want to reduce their electricity bills or even pay nothing for it at all? Plus, if you have a solar panel system in your business or in your home, you are eligible for Feed-in-Tariffs when you supply energy back to the grid.

Environmental awareness is also a big factor in the popularity of solar energy in the country. Since solar is renewable energy, it gives you the ability to lessen your carbon footprint since everything about solar power is clean and green from the materials to the way it produces electricity. Make Greta Thunberg proud! (Even though she’s not Australian)

The ability to go completely off-the-grid is also very attractive to some. Going solar allows you to produce your own electricity and even store them with the use of solar batteries. To most people, this translates to no longer having to depend on electricity retailers for power, which means no more brownouts and making them less prone to power outages. This is also very useful if your location is unreachable by the grid. Say, you might want to build a cottage on top of a mountain?

There’s a lot of sunlight in Australia. As funny as that statement sounds, it’s true. It’s very sunny in this country.

However, none of these reasons are exclusive to Australia! Every country has the ability to sell cheaper solar panels or be environmentally aware. So, let’s get to the details that really make Australia’s solar industry more popular than in other countries.

The Government’s Role in Australia’s Solar Growth

Australia’s federal government plays an important part in the country’s solar energy growth by showing its support to increase renewable energy usage in their country through the Renewable Energy Target (RET) which first started in 2001. There are two schemes under RET—LRET and SRES.

Large-scale Renewable Energy Target (LRET)

The LRET scheme requires high-energy users to acquire a certain amount of their electricity from renewable resources through the form of Large-scale Generation Certificates (LGCs) that are created by large power stations such as solar farms. These registered LGCs may be sold or transferred to liable entities with obligations under the RET for them to surrender as proof of their compliance with the scheme.

Small-scale Renewable Energy Scheme (SRES)

The SRES scheme provides financial incentives to individuals and businesses to encourage them to use small-scale renewable energy systems through the form of Small-scale Technology Certificates (STCs) which basically slashes off a certain amount off of your newly purchased renewable energy system depending on variables such as its output capacity and your location. In the solar panel systems industry, these are more popularly known as solar rebates, so you might be more familiar with that.

Small-scale Renewable Energy Scheme’s Importance to Australia’s Solar Industry

The SRES provides two very encouraging factors for people to go solar. The incentives might already be good enough, yes. But the SRES holds more value than just an incentive because it is also important in the assurance of safety in solar panel systems provided in the country. How? In order to be eligible for STCs or “solar rebates,” your solar panel system must, first, be designed and installed by a Clean Energy Council (CEC) accredited installer. Without the SRES, there is no way to regulate the safety of these devices.

This means that most, if not all, solar panel systems that are installed in Australian homes are guaranteed to be safe, as everyone wants to be eligible for the incentive provided by the government. If you’re not yet aware, it covers approximately 30 percent of a total system’s cost. For a 5kW solar panel system, that would be a “discount” of around $2,000-$3,000. Who wouldn’t want that, right? Use the excess money to buy 3 brand-new iPhones or something.