Australia’s rooftop solar market is experiencing strong and sustained growth as households, small businesses and commercial properties increasingly adopt solar photovoltaic (PV) systems to cut energy costs, boost sustainability and reduce dependency on the traditional grid. The market size reached USD 1,436.36 million in 2024, and is projected to reach USD 2,508.25 million by 2033, reflecting a compound annual growth rate (CAGR) of 6.39% during 2025–2033. This growth underlines a shift in how Australians consume and produce energy — from passive consumers to active prosumers generating electricity on their rooftops. As energy costs rise, policy incentives remain favourable, and solar-plus-storage technology improves, rooftop solar is rapidly becoming a mainstream energy solution across the country.

Why the Market Is Growing So Rapidly

Several key drivers are powering the rooftop solar surge across Australia:

Declining Solar PV Costs & Advances in Technology

Over the past decade, the cost of solar PV panels and installation has dropped substantially globally — and Australia has benefited from this trend. Advances in solar panel efficiency, reduction in hardware costs, improved inverters and better installation processes have made rooftop solar more affordable and attractive for homeowners and commercial users. These cost improvements have lowered payback periods and increased the ROI for rooftop systems.

Battery storage adoption is also rising: many rooftop installations are now bundled with batteries, enabling self-consumption, energy independence, and greater grid resilience. This shift enhances value for households, especially as electricity tariffs climb.

Supportive Government Policies, Incentives & Grid-Decentralisation Drivers

Policy support — including feed-in tariffs, rebates or incentives at state and federal levels, and regulatory measures — has encouraged widespread rooftop solar adoption. Australia’s renewable energy targets and growing emphasis on energy decarbonisation create a conducive environment for rooftop solar deployment.

Moreover, grid constraints and increasing demand in urban and remote areas are pushing both households and small businesses to adopt decentralized energy solutions. Rooftop solar helps reduce strain on the grid, lower transmission losses and contribute to a more resilient, distributed energy network.

Rising Electricity Costs & Energy-Security Concerns

With rising electricity prices and increasing upper volatility in energy supply, homeowners and businesses view rooftop solar as a hedge against escalating utility bills. Installing solar PV — often combined with battery storage — helps reduce ongoing electricity costs and offers long-term energy savings, making the investment financially attractive.

Additionally, interest in renewable energy, environmental stewardship, and climate-conscious lifestyles also motivates households toward clean energy adoption. As public awareness of climate change and sustainable living grows, rooftop solar emerges as a tangible, practical solution.

Increasing Installations & Mass Adoption

Rooftop solar has moved beyond early-adopter enthusiasm and is now being widely adopted across suburban and regional Australia. As of mid-2025, estimates suggest more than 4.2 million rooftop solar systems have been installed nationwide — covering homes, small businesses and commercial premises.

In 2024 alone, over 300,000 rooftop solar systems were installed, adding roughly 3 GW of capacity. With each installation, rooftop solar’s share of the national energy mix increases — supporting decentralisation, energy security and cleaner power generation.

What the Opportunities Are

The expanding rooftop solar market in Australia presents multiple avenues for growth, investment, and innovation:

1. Residential Solar + Battery Storage Uptake

As battery storage becomes more affordable and efficient, homeowners can adopt “solar + storage” systems — enhancing self-consumption and reducing reliance on grid electricity. This presents opportunity for solar installers, battery manufacturers, and energy-storage solution providers.

2. Commercial & Small-Business Rooftop Solar Deployment

Small and medium enterprises (SMEs), retailers, offices, warehouses and commercial buildings can benefit significantly from rooftop solar — cutting operational energy costs, hedging against rising electricity tariffs, and demonstrating sustainability. Solar firms that target the commercial segment can tap a large market.

3. Virtual Power Plants (VPPs) & Grid-Services Integration

With many individual rooftop systems and battery-equipped households, there is an opportunity to aggregate distributed generation into Virtual Power Plants (VPPs). These can provide grid-stabilization services, demand-response capabilities and peak-load management — attractive for utilities and policy-makers.

4. Smart Home & Energy-Management Ecosystems

Integration of rooftop solar with smart home energy management systems (smart meters, IoT-enabled monitoring, load-shifting, battery scheduling) allows better energy optimisation. Providers offering integrated renewable-plus-smart home packages can differentiate.

5. Expansion in Regional & Remote Areas

Remote, suburban and regional areas — where grid reliability can be a concern — have high potential for rooftop solar adoption. Solar-plus-storage systems can deliver reliable, decentralized energy to homes and businesses, reducing dependence on long transmission lines.

6. Green Mortgages, Sustainable Real-Estate & Property Value Premiums

Property developers, real-estate companies and homeowners can leverage rooftop solar as a value-added feature. Homes and buildings equipped with solar (and optionally storage) can command higher resale value, appeal to eco-conscious buyers, and reduce long-term energy costs — making solar a differentiator in real estate.

Recent News & Developments (2025)

• September 2025: Australia broke a new rooftop solar record — installing 302 megawatts (MW) of rooftop capacity in a single month, showcasing mounting consumer and business interest in rooftop PV systems nationwide.

• June 2025: Reports indicated that cumulative rooftop solar capacity had surpassed 26.8 GW, with more than 4.2 million systems installed across households and small businesses — reinforcing how widespread rooftop solar adoption has become.

• 2025: Sales of home-battery units surged: in 2024 alone, nearly 75,000 battery units were sold, increasing the total installed battery-backed rooftop-solar units to around 185,800. About 28% of new rooftop solar installations in H2 2024 included a battery — illustrating the momentum toward solar-plus-storage solutions.

Why Should You Know About Australia Rooftop Solar Market?

You should know about Australia’s rooftop solar market because it represents a major transformation in how energy is generated, consumed and managed in homes and businesses across the country. Rooftop solar shifts power from centralised utility grids to decentralised, consumer-driven generation — giving households and companies control over energy costs, enhancing resilience, and advancing the green-energy transition.

For investors and entrepreneurs, rooftop solar offers strong growth potential in hardware (panels, inverters, batteries), services (installation, maintenance, energy-management), and emerging business models (VPPs, energy-as-a-service, smart-home integration). For homeowners and businesses, it offers a long-term hedge against rising electricity prices, energy independence, and sustainability credentials.

In short: rooftop solar is not just a niche or trend — it is becoming a mainstream energy solution shaping Australia’s future energy landscape. Understanding this market means recognizing where long-term value, energy security, and environmental impact converge.