Australia’s solar rollout continues to reach new heights with a combined total of 4.7 GW of small- and large-scale PV installed across the country in 2024, but shifts in the rooftop market suggest that diversification of services will be key for the nation’s installer community going forward.
Data from industry analyst SunWiz shows 321,000 rooftop PV systems were installed on Australian homes and businesses in 2024 with 3.19 GW of sub-100 kW solar registered last year, a 1.9% increase on 2023, with commercial installs the standout.
The latest Annual SunWiz PV Market Report shows that the 15-100 kW sector grew by 16% in 2024 to record its best year of growth yet. But while the commercial sector surged, residential PV volumes declined, delivering one of its weakest years in recent history.
SunWiz said the 1 kW to 15 kW residential rooftop sector, which has long been the backbone of Australia’s solar growth, contracted by 1.6% in 2024, only the second downturn in residential PV installations since 2015.
SunWiz Managing Director Warwick Johnston said the market contraction is projected to repeat in 2025 but said the decline in residential solar volumes presents both a challenge and an opportunity for Australia’s large rooftop installer and retailer community.
“While traditional small-scale residential sales have declined, small commercial solar and battery storage represent the future growth drivers,” he said. “We’ve already been we’re seeing significant increase in battery uptake.”
Recent data shows 74,582 residential home battery systems were deployed across Australia last year, up from 46,127 in 2023, and 28.4% of solar installations were accompanied by storage.
The SunWiz report shows that solar businesses that only performed residential installations suffered a 10% overall decline in revenue in 2024. Overall revenue generated from rooftop PV retailer’s sales in Australia declined by 4% last year. Revenue in 2024 was 11% below its peak in 2021. In contrast, revenue in the sub-100 kW commercial sector grew by 13% to a record level of $1.1 billion.
“Solar retailers who adapt their business models to these emerging trends will be best positioned for success in 2025 and beyond,” Johnston said. “It’s smart to have that degree of diversification.”
While battery energy storage is increasingly popular with consumers, SunWiz said the trend is also towards larger PV systems, with the average size of a solar array increasing to 9.9 kW in 2024.
The report also reveals that system upgrades now represent a sizeable proportion of all installations. Of the 321,000 installations that occurred in 2024, 20% occurred at the site of an existing system, which was typically increased in size.
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