The Rise of Rooftop Solar Systems: Exploring the Factors Driving Their Growth

The Australian solar industry has been on a rollercoaster ride, experiencing monthly ups and downs. However, there is one aspect that has consistently risen since 2010 – the average system size. In 2023, it reached a new record of 9.4kW per system.

So, what is driving the trend of ever-growing system sizes?

Firstly, the decrease in panel prices has made it more affordable for people to invest in larger systems. In the early days of the industry, panels accounted for a significant portion of the system’s cost. Nowadays, the difference in price between a smaller and larger system is minimal.

Secondly, it is practical to maximize the system size due to ever-changing regulations. Upgrading systems at a later date can be challenging due to these regulations, so it makes sense to do it all at once.

Additionally, concerns about limited network PV hosting capacity have also contributed to the preference for larger systems. By maximizing their network allocation, homeowners can ensure their system meets their future needs.

Furthermore, people are planning ahead for the future. With the expected increase in household electricity consumption due to electric vehicles and other electrification efforts, installing a PV system now that can cater to these future needs is a wise choice.

Lastly, the growth of commercial PV systems has outpaced residential systems. As a result, commercial systems now make up a larger proportion of the total systems, leading to an increase in the average system size.

The 2024 Annual SunWiz Australian PV Market Report provides a detailed analysis of the most popular system sizes in the country.

Warwick Johnston, the managing director of SunWiz, is at the forefront of these developments.