Victoria’s appetite for rooftop solar is reshaping the state’s energy mix, with panels now producing almost 11 per cent of total electricity demand.
Rooftop solar is making a record contribution in Victoria, underscoring the technology’s central role in the state’s energy transition.
Figures have been released in Victoria’s annual renewable generation update, which confirm that renewables supplied more than 42 per cent of the state’s electricity in 2024–25.
The contribution from small-scale solar was a standout, with households, warehouses and office rooftops providing the equivalent of one in every nine kilowatt-hours consumed.
“Our record investment in renewable energy is paying off – Victoria consistently has the lowest wholesale power prices in the country, helping to slash energy bills for families and businesses,” said Minister for Energy and Resources Lily D’Ambrosio.
Victoria has already met its legislated 40 per cent renewable energy target a year ahead of schedule and is pushing towards 65 per cent by 2030 and 95 per cent by 2035.
While 90 large-scale wind and solar projects now deliver nearly 7 gigawatts of capacity, rooftop systems are increasingly the state’s quiet workhorse.
The surge in distributed solar is reshaping grid management. With more than 50 gigawatts of projects either proposed or committed, planners are banking on rooftop generation and battery storage to help stabilise evening demand peaks.
According to the government, current projects under development will be able to power 574,000 households a year, with storage meeting the evening needs of nearly a million homes.
Victoria’s wholesale power price averaged $107 per megawatt hour last financial year – the lowest in the National Electricity Market and well below New South Wales at $151.
Analysts point to cheap rooftop generation suppressing daytime wholesale prices as one of the drivers.
Industry observers say rooftop solar remains the most direct and visible sign of Victoria’s shift away from coal.
The growth also raises technical and policy challenges, from voltage management in local networks to the speed of grid upgrades flagged in the new Victorian Transmission Plan.