How Australia’s Big Utilities (Almost) Missed The Solar Boom (Charts)

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Originally published on Renew Economy.

Here are two graphs that illustrate the pickle that Australia’s major electricity retailers find themselves in. For the past five years the big three retailers increased their market share by more than half, they almost completely missed the biggest trend in the energy markets in the last 100 years – the emergence of rooftop solar.

The charts from Bloomberg New Energy Finance show just how. On the left is the increase is market share – from 48 per cent in 2010 to 74 per cent in 2014, after the big three bought out smaller rivals and stamped their dominance on the market.

But to the right is their accumulated market share of installed small-scale solar PV. Only Origin Energy, which briefly ranked as the biggest installer in the country, has any meaningful share, with 5.9 per cent. AGL held less than one per cent of the installed PV market, and Energy Australia even less, with 0.3 per cent.

australia-utilities-solar

The data is remarkably similar to the experience in Germany, the one country that rivals Australia in the penetration of rooftop solar.

The big German utilities also spurned the boom in rooftop solar, accounting for little of the installed capacity.

The result was that the major utilities, E.ON and RWE, eventually had to do an about-face as the cost of rooftop solar continued to fall, and the arrival of battery storage made it clear that the future lay in distributed generation.

E.ON is now catching up by announcing a split in its assets, with the old centralized, fossil fuel generation to be parked in one company, while the new focus will be put on solar, storage, electric vehicles and micro-grids.

RWE is making a similar transition, without the split in assets so far.

Australia’s big utilities are yet to take such radical measures to their structure, but have announced a push into the solar and more recently the battery storage sector, with the rollout of leasing models and power purchase agreements that will see the retailers own the hardware on the roof and sell the output to its customers, presumably in the hope of retaining them for the long term.

Reprinted with permission.


Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Latest CleanTechnica TV Video


I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
 
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
 
Thank you!

Advertisement
 
CleanTechnica uses affiliate links. See our policy here.

Giles Parkinson

is the founding editor of RenewEconomy.com.au, an Australian-based website that provides news and analysis on cleantech, carbon, and climate issues. Giles is based in Sydney and is watching the (slow, but quickening) transformation of Australia's energy grid with great interest.

Giles Parkinson has 596 posts and counting. See all posts by Giles Parkinson