Rooftop solar system installations dip as costs bite

The number of solar rooftop installations has plunged as households are paying $1000 more for systems amid price hikes for vital parts.

Solar installed on Australian household rooftops fell by more than half in the second quarter of 2022 to 52,950 systems from 109,000 for the same time a year earlier and 86,000 in 2020. Photographer: Bloomberg

Rooftop solar installations fell to their lowest level in three years for the three months to June 30, with households paying $1000 more for the same system due to higher costs and supply snags, the Australian Energy Council said.

Solar installed on rooftops fell by more than half in the second quarter of 2022 to 52,950 systems from 109,000 for the same time a year earlier and 86,000 in 2020.

A reporting lag means this year’s figure will likely be bumped up to 80,000 installations, indicating just over a quarter fewer systems were put in place.

Households in 2022 are typically paying $1000 more for the same solar set-up their neighbour paid for last year, fuelling household hesitancy that has been amplified by cost of living pressures and economic jitters.

The cost hike was triggered by supply chain issues, the increased cost of polysilicon used to make solar cells, and a reduction in subsidies paid through small-scale technology certificates.

The number of STCs a rooftop solar system has created falls each year through to 2030 when the scheme ends.

The average installed solar system size for residential households has more than tripled over the last decade to 9.54 kilowatts from 2.65kW in January 2012.

The Victorian postcodes of 3029 – Hoppers Crossing, Tarneit and Truganina – and 3064 – Donnybrook – were first and second respectively for the biggest solar uptake in Australia, while the NSW postcode of 2765 in Sydney‘s northwest was third overall.

South Australia and NSW account for over half the market for those combining solar and batteries, with Queensland lagging after its incentive scheme was exhausted in 2019.

Over 3.1 million Australian households have added solar to their rooftops since the turn of the century, adding 15 gigawatts of capacity to the national electricity market.

A third of detached homes in the market have the technology installed but official forecasts show half of all homes will have the electricity source in place by 2032, rising to 65 per cent with 69GW of capacity by 2050 and accounting for one-fifth of total grid demand.