
As we step into 2025, the Australian solar industry is buzzing with opportunities and challenges for installers. Staying ahead means understanding key trends and leveraging the right tools to grow your business. Here’s what you should keep an eye on:
Battery Subsidies in Key Australian States:
Battery storage continues to drive interest, supported by significant state-level incentives:
New South Wales: The NSW battery rebate launched in November 2024. While the exact amount varies, a Tesla Powerwall 3 typically qualifies for a base subsidy of $2,150, increasing to $2,480 if connected to a Virtual Power Plant (VPP). Even owners of existing batteries can benefit if they join an eligible VPP.
ACT: The Sustainable Household Scheme offers zero-interest loans of up to $15,000, repayable over 10 years, for energy storage systems, solar + storage, and other energy-efficient upgrades. Victoria: Interest-free loans of up to $8,800 are available under the Solar Homes Program. At the time of writing, over 1,200 loans remain for 2024-25.
Northern Territory: The NT Government offers $400 per kilowatt-hour of usable capacity, capped at $12,000 per system. This grant was doubled in December 2024, making it one of the most generous subsidies in the country.
The Changing O&M Landscape:
The ageing solar infrastructure in Australia requires increased maintenance. Mandatory inspections in some regions such as South Australia, coupled with the exit of certain installers from the market, have created a strong demand for professional Operations and Maintenance (O&M) services. Solar businesses that can offer comprehensive and efficient O&M solutions will have a competitive edge.
A Retrofit-Driven Market
As solar adoption grows, retrofits and system upgrades are becoming more common. Many existing systems installed in the early days of solar adoption are now outdated or underperforming. These systems often require health checks, component replacements, or the integration of advanced technologies such as modern inverters, batteries, and monitoring systems. Additionally, changes in energy consumption patterns and the need for greater energy independence are driving homeowners and businesses to consider upgrading their existing setups. For solar installers, this trend opens up significant opportunities to engage with existing customers and provide value-added services.
Increasing Demand for Hybrid Systems
Battery storage and hybrid solar systems are quickly becoming the norm, as customers seek energy independence and protection from rising electricity prices. Hybrid systems, which combine solar panels with battery storage, allow households and businesses to store excess solar energy for use during peak hours or outages, increasing energy reliability and self-sufficiency.
Competing in a Crowded Market
Australia’s solar market has over 4 million rooftop installations and counting, leading to increased competition. Installers need to differentiate themselves by delivering efficiency and exceptional customer service. The adoption of digital tools such as SolYield could help installers improve efficiency and stay competitive.
Adapting to Policy Changes
Regulatory shifts, including export charges, new feed-in tariff structures, and incentives for Virtual Power Plants (VPPs), are driving changes in customer preferences. Installers need to stay updated on these policy changes and adapt their offerings to ensure solar remains an attractive and viable investment. Curtailment of solar power has made it even more difficult for asset owners and operators to track the efficiency in performance of solar and storage assets.
Innovative Residential OPEX Models Gaining Traction
Innovative OPEX models such as the 'no upfront-cost solar and battery systems' from NRN are valued by all stakeholders - homeowners, installers, energy retailers and investors. By offering solar-as-a-service options, these models remove upfront costs for residential customers, making solar more accessible and appealing. These models also attract investors who have started viewing residential solar as a reliable and profitable asset class. The predictable payback periods and stable returns could make such investments highly attractive.
Mandatory Climate Reporting and Boost to Commercial Solar
Starting January 1, 2025, Australia will implement mandatory climate-related financial disclosures for large businesses and financial institutions. This requires companies to report on their climate-related risks, opportunities, and greenhouse gas emissions, including Scope 1, Scope 2, and, from 2026, Scope 3 emissions.
How This Drives Commercial Solar:
Emission Reduction: Installing commercial solar systems enables companies to decrease their Scope 2 emissions by generating renewable energy on-site.
Cost Management: Businesses can mitigate rising energy costs and reduce the financial impact associated with climate reporting obligations.
Competitive Advantage: Adopting renewable energy solutions like commercial solar enhances a company's reputation among stakeholders and investors prioritising environmental responsibility.
Navigating the Australian solar market requires the right tools and insights. SolYield empowers you to streamline operations, maximise customer satisfaction, and grow your business with confidence. If you’d like to learn more or schedule a demo, contact us @ info@solyield.com
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