Solar Energy in Australia

Solar Energy in Australia

Today Solar Energy in Australia is in High Demand by People or Farmers to Saving More Electricity. Solar Energy in Australia is the first with wide space and abundant sunshine being an ideal location for Best Solar Panels providing renewable energy to the properties. But how the operation works, their pros and cons, do matter here.

The first commercial-scale solar farm was Alice Springs’ Uterne Solar Power, which had almost 1 MW capacity and met around 1% of the city’s electricity needs. Greenough River Solar Farm in Australia, the second solar farm with almost a utility-scale facility with a 10MW capacity, began operations near Geraldton, Western Australia, in 2012.

A Guide of Solar Energy in Australia:

Australia is an emerging place for solar and the world’s largest solar energy producing country. These solar facilities, ranging from residential setups to expansive utility-scale projects, harness the abundant sunlight in the country to convert it into electricity directly. Australia’s vast size and high sunlight levels create an ideal environment for the flourishing of solar farms. Notable examples include the 150 MW Coleambally Solar Farm in New South Wales, the 137 MW Tailem Bend Solar Farm in South Australia, and the 100 MW Bungala Solar Farm in South Australia. Numerous environmental and economic benefits are associated with solar farms in Australia, contributing to reducing greenhouse gas emissions and aiding in climate change adaptation by generating electricity from a sustainable source. Also, over a gradual time, solar farms have proven to be sound investments for businesses and governments, offering a reliable energy source less susceptible to the price volatility of traditional fossil fuels. Beyond supplying renewable energy, these solar projects stimulate local economies by creating job opportunities. Rural areas, in particular, experience economic growth as solar farms become integral parts of the community. Landowners who permit the installation of solar farms on their properties also enjoy financial benefits. While facing challenges, Australia has still made considerable progress in transitioning to renewable energy. The existing electricity grid, designed for large-scale power plants, poses difficulties integrating renewable sources like solar farms. But with appropriate policies and investments, solar farms can play an important role in giving Australia a new shape towards a sustainable, low-carbon energy future.

How Much Solar Energy Produced by Farms?

As per the Clean Energy Council’s 2018 report, large-scale solar farms constituted a mere 0.8% of Australia’s total electricity generation. While this figure might appear modest, it gains significance when considering the overall limited contribution of renewables to the nation’s electricity output. According to the Clean Energy Council report, large-scale solar photovoltaic (PV) systems represented 3.9% of the total renewable energy generated in 2018. This percentage is anticipated to grow substantially with the construction of 42 new solar farms in the coming years.

Solar Power is increasing on a large scale:

Solar farm construction in Australia has experienced a significant surge in recent years. Those involved in developing and investing in solar farms are optimistic about the future of large- and medium-scale Solar Power in Australia. This optimism is fueled by decreasing costs and a more stable market environment. Compared to smaller commercial solar panel installations, commonly called “solar panels,” solar farms are typically on a megawatt-scale, ground-mounted rather than roof-mounted, and designed to sell energy to the electrical grid or a designated buyer. These buyers are often large energy users and electricity retailers.

Solar Farm Rental Income VS Ownership:

Landowners can directly profit from a solar farm by receiving long-term rent payments for land usage. However, developing, financing, and operating a solar farm independently can be expensive and risky, making it advisable to rely on the expertise of professionals. If one intends to pay for and own the solar farm outright, one must consider who will purchase its electricity. There are three potential approaches:

1. Self-Consumption:

If the entity developing the solar farm has high daytime electricity demands, such as industrial farms, they can use the generated power for their needs.

2. Power Purchase Contract (PPA):

Another is entering into a PPA with a major energy user or an electrical retailer; it involves negotiating a deal to sell the solar farm’s power at a predetermined price, but successfully navigating a PPA requires time, expertise, and experience.

3. National Electricity Market (NEM) Sale:

The power generated by the solar farm can be sold on the NEM, which involves injecting the electricity into the system and either selling it on the open market or through regulated channels. However, this strategy carries the highest risk due to the unpredictability and volatility of wholesale electricity markets, especially if the solar farm is located on Australia’s east coast or within smaller grids nationwide.

 Is Solar Farms an investment?

Generating income through farming has become increasingly challenging in the 21st century, particularly with the escalating cost of living, including energy expenses. However, integrating solar power into farming operations can offer a promising solution. Utilizing solar power on your farm eliminates additional labor and maintenance costs. Unlike traditional farming methods, there is no need for water, fertilizers, pesticides, veterinarian fees, or the routine tasks of early morning and evening paddock checks. Opting for renewable energy presents a virtually maintenance-free and cost-effective alternative. The natural sunlight takes on the workload, providing financial savings and affording farmers more time due to the minimal upkeep required in harnessing solar power for their operations. In the same way, solar energy emerges as a practical and advantageous choice for farmers looking to stabilize their income streams and mitigate the challenges posed by the contemporary economic landscape.


Australia has secured its position as one of the world’s leading solar power generators, predominantly through the widespread implementation of solar farms that capture and convert the sun’s rays into electricity. Adopting solar farms not only aids in adapting to a changing climate but also contributes to reducing greenhouse gas emissions. These farms offer a reliable energy source that is less vulnerable to price fluctuations than traditional fossil fuels.

In addition to their environmental benefits, solar farms play a pivotal role in fostering sustainable energy practices and contributing to economic growth by creating local employment opportunities. In 2018, large-scale solar photovoltaic (PV) accounted for 3.9% of Australia’s renewable energy production. With the anticipation of 42 new solar farms in the coming years, this percentage is expected to rise. While solar farms generated only 0.8% of Australia’s total electricity in 2018, this figure gains significance when considered in the context of the overall share of renewables in the country’s electricity generation. The Clean Energy Council emphasizes that solar farms can significantly contribute to Australia’s transition to a sustainable and low-carbon energy future with the right policies and investments. The country’s increasing use of large-scale solar power is attributed to lowered prices and a more stable market.

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