Market Update | 12 January

A warm welcome to 2024 for all market participants. As we step into the new year and look back at the wake of 2023 it is evident the landscape of Australia’s energy market is taking confident strides forward. The dynamic coat-tails of 2023 included positive policy change, significant federal funding announced for large-scale renewable projects, record grid provision from residential solar, and state-based scheme calibration towards better consumer engagement. This only serves to reinforce the trajectory of the energy transition to continue in 2024.

In this week’s Market Update:

• Pre-Christmas Gazettal of the ESS Rule Change
• Australia’s Rooftop Solar Market: A record-breaking 2023 and outlook on 2024

Pre-Christmas Gazettal of the ESS Rule Change

The end of 2023 closed with the gazettal of the NSW Energy Savings Scheme rule change on the 19th of December. The changes stipulate new minimum co-payments of $200 for both residential and commercial heat pumps, and residential air conditioners, aimed to ensure consumer trust and value are reinforced. The volume of ESCs created per unit has been adjusted to ensure energy savings from residential hot water systems better reflect real-world savings.

These changes are set to come into effect on June 19th, 2024.

Australia’s Rooftop Solar Market: A record-breaking 2023 and outlook on 2024 

In the throes of 2023, Australia’s rooftop solar market came tantalizingly close to surpassing its own growth predictions, falling just shy of the anticipated record-breaking year (2021). Despite this, the year was far from a disappointment, marking substantial achievements and signaling a transformative era for the nation’s PV capacity and output.

The total small-scale solar installations for the year reached approximately 3.17GW, representing a 14% increase from the previous year and falling short of the 2021 record of over 3.23GW. Australians continue to embrace rooftop solar at a rapid pace, with average system sizes hitting a new high of 10.5kW per system in December. The output from these solar installations also reached noteworthy levels, breaking records as Victoria’s rooftop PV share hit 65.8%, and South Australia’s soared to 101.8%, meeting the entire region’s demand for the second time.

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.

Angus Taylor | Business Development Manager, Energy & Carbon Services
Angus specialises in ESS activities including Heat Pumps, Air Conditioning, and Commercial Lighting.