Australian electricity demand tumbles in Q3 as country embraces rooftop solar

Facebook
Twitter
LinkedIn
Reddit
Email
Australia’s Clean Energy Regulator suggests around 29% of Australian houses now feature rooftop PV. Image: istock/Getty.

Australia’s rooftop PV boom combined with changes in energy use due to COVID-19 drove electricity demand to record lows in three states during Q3.

A new report by the Australian Energy Market Operator (AEMO) also shows that emissions fell to their lowest third-quarter levels in the country’s National Electricity Market, thanks in part to increased solar and wind output, while electricity prices tumbled year-on-year.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“The uptake of residential and commercial solar continues at record pace, which was largely responsible for new minimum operational demand records in Victoria, South Australia and Western Australia,” said Audrey Zibelman, AEMO CEO.

According to Australia’s Clean Energy Regulator, around 29% of Australian houses now have PV installed on their roofs, reaching as high as 42% in Queensland. The regulator suggests 2.9GW of additional rooftop capacity is set to be installed this year as people increase spending on home improvement.

AEMO's Q3 report shows distributed PV met 71% of South Australia’s total energy needs on 13 September, driving a new daytime minimum demand record of 379MW, which was 79MW lower than the previous record.

In Victoria, where coronavirus restrictions are starting to ease after more than 100 days of lockdown, a low of 3,073MW was achieved on 6 September, down 144MW on the previous record, with distributed PV accounting for 31% of underlying demand.

Across the NEM – which interconnects Queensland, New South Wales, Victoria, South Australia and Tasmania – average third-quarter operational demand decreased 1.4% year-on-year, mainly as a result of more rooftop PV.

According to Zibelman, mainland NEM wholesale electricity prices declined almost 50% compared to the same period last year, driven by lower demand, the improved reliability of coal-fired generators as well as additional renewables capacity.

“Grid‑scale solar and wind accounted for 14% of the generation mix, up from 12% in Q3 2019, due to increased supply coming into the system. Further, wind and solar output provided a record 35% of total generation on 27 September 2020,” she said.

While states such as Queensland and Victoria are planning additional investment in renewables to help drive the economic recovery from the pandemic, new utility-scale solar in Western Australia could be unnecessary in the coming years as rooftop PV displaces other energy sources.

A new roadmap for the state says the current 1.3GW of installed rooftop PV could increase to as much as 5GW in the next ten years. The report notes that the volume and density of rooftop PV in the grid provides an opportunity for large numbers of individual systems to be aggregated and coordinated to provide energy and essential system services.

In a move to overcome grid constraints caused by high levels of rooftop solar, the Australian Renewable Energy Agency is backing a pilot project that will test a flexible connection for up to 600 rooftop solar customers in South Australia and Victoria, allowing them to be paid for exported energy. The trial will deploy flexible connection technology that enables inverters to automatically adjust export limits every five minutes based on signals received from the distribution network.

Read Next

September 15, 2025
UNSW spin-out company Lab360 Solar has been awarded funding from ARENA to bring its drone-based PV inspection technology to market.
Premium
September 15, 2025
The UK government and solar industry have jointly published a long-anticipated roadmap detailing how to maximise the country’s solar potential. Chris Hewett, CEO of Solar Energy UK takes a closer look at the details.
September 15, 2025
Australia has reached 26.8GW of installed rooftop solar at the end of the first half of 2025, according to a report from the Clean Energy Council (CIC).
September 10, 2025
The CEFC has said that a coordinated approach to transmission in Pilbara, Western Australia, could save more than AU$30 billion over 25 years.
September 9, 2025
Australia's National Electricity Market (NEM) broke records yesterday when renewables supplied 76.4% of total electricity demand, with solar power contributing nearly 60% of the record-breaking clean energy mix.
September 8, 2025
A green energy auction in the Philippines has secured 9.4GW of renewable energy capacity subscriptions, of a target of 10.65GW.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA