Australia’s cumulative rooftop solar capacity in its National Electricity Mark (NEM) increased from 25.7 GW as of the first quarter of 2026 to 26.4 GW by the end of the June quarter (Q2 2026), according to a report published by the Australian Energy Market Operator (AEMO). The total covers 3.9 million installations.
AEMO’s latest Quarterly Energy Dynamics report also shows household battery energy storage capacity across the NEM grew by almost 3.3 GWh or 41% during Q2 2026.
The report also notes 14 new grid-scale generation and storage projects totalling 3.9 GW of capacity reached full output during Q2 2026, double the previous quarterly record. This comprised 2.7 GW of battery capacity, 0.5 GW of solar-plus-battery capacity, 0.4 GW of solar capacity and 0.2 GW of wind capacity.
These supply changes lifted the renewable share of NEM generation to a new Q2 high of 42.1%, up from 37.1% in the same period last year.
Distributed PV output reached a record Q2 average of 2,520 MW, up 6.9% year-on-year, increasing its share of the energy mix to 10.3% for the quarter. Grid-scale solar generation increased by 12% to average 1,860 MW, with its share increasing to 7.6% from 6.8%, while wind output increased by 20% to 4,198 MW.
Coal generation fell 5% year-on-year to 13,158 MW, while gas-powered generation dropped 30% to its lowest Q2 average since 2003, at 1,050 MW, 30% lower than in Q2 2025.
AEMO said the record share of renewables drove average wholesale electricity prices in the NEM to their lowest June quarter average since 2020, down 47% from the same period last year to an average of AUD 74 ($51.58)/MWh.
AEMO Executive General Manager Policy and Corporate Affairs, Violette Mouchaileh, said continued investment in renewables and storage is reshaping the market. “These technologies are changing demand patterns, supporting system reliability and increasing the amount of lower-cost energy available across the market,” she said.
The same was not true for Western Australia, where the renewable share of generation declined from 33.6% to 32% for the quarter. Rooftop solar output in the Wholesale Electricity Market (WEM) increased by 3.4% but wind generation decreased by 13% due in part to lower wind speeds, while coal-fired generation fell by 17% reflecting planned and forced outages.
AEMO said these reductions increased reliance on gas-fired generation, which rose by 27%, driving average real-time wholesale electricity prices up 30% year-on-year to AUD 118/MWh.
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