Australia is set to generate more than 12% of its electricity from rooftop solar panels in 2025, marking a notable advancement in its renewable energy sector. This surge in solar power is part of a broader trend that signals a significant shift in Australia’s energy landscape.
Australian Rooftop Solar’s Growing Impact
In 2025, rooftop solar power is projected to meet over 12% of Australia’s electricity demand, according to the International Energy Agency (IEA). This estimation highlights the increasing importance of solar energy in the nation’s electricity mix. Australia has long been a leader in rooftop solar adoption, boasting over 4 million installations as of June 2025. Data indicates that rooftop solar accounted for 12.8% of the country’s electricity in the first half of 2025.
The IEA’s annual report, “Renewables 2024,” released in June, predicts that this trend will continue, projecting that rooftop solar will cover 15% of Australia’s electricity demand by the end of the decade. The Clean Energy Council expects Australia to have 37.2 GW of rooftop solar installed by June 2030, exceeding previous projections.
Drivers of Australian Rooftop Solar Expansion
Several factors contribute to the widespread adoption of rooftop solar in Australia. The country’s abundant sunshine makes it an ideal location for solar power generation. Additionally, favorable government policies, including incentives and rebates for solar panel installations, such as those in NSW, have encouraged homeowners and businesses to invest in solar energy. These incentives can provide significant discounts on battery installations when purchased with new or existing solar systems.
The IEA’s report emphasizes the role of distributed solar photovoltaics (PV) in Australia’s energy transition. Rooftop solar installations are expected to account for more than 12% of electricity demand in the coming year. This growth in distributed solar PV is crucial for reducing greenhouse gas emissions and achieving Australia’s renewable energy targets. Moreover, installing a rooftop solar system can lead to approximately AU$1,500 yearly savings on energy bills, potentially doubling with the addition of a battery.
Global Context and Comparisons of Australian Rooftop Solar
Australia’s success with rooftop solar stands out on the global stage. The IEA report notes that rooftop solar power now accounts for 4% of total electricity demand worldwide. Australia’s contribution is significant, given its relatively small population compared to other countries leading in solar energy, such as China, the United States, and Germany.
China remains the global leader in total installed solar capacity, with a staggering 600 gigawatts (GW) of solar power. However, Australia’s focus on distributed solar PV sets it apart. The IEA highlights that Australia, along with Germany and the United States, is among the top three countries in terms of rooftop solar generation per capita.
Future Prospects and Challenges for Australian Rooftop Solar
The IEA report projects that by 2030, solar energy will account for 15% of Australia’s electricity demand. This forecast aligns with the nation’s ambitious renewable energy goals, which include increasing the share of renewables in the energy mix to 82% by 2030. Renewables already reached a record level of 54.5% of all generation in the second quarter of 2025.
Despite these positive trends, the IEA warns of potential challenges ahead. The ongoing global energy crisis and rising interest rates could impact the pace of renewable energy deployment. However, the agency remains optimistic, citing the resilience of the clean energy sector and the continued decline in renewable energy costs.
The increasing share of rooftop solar in Australia’s electricity mix is a testament to the nation’s commitment to renewable energy. With over 12% of electricity demand expected to be met by solar power in 2025, Australia is well on its way to achieving its renewable energy targets.
