Rapid Growth in Distributed Solar and Batteries Enables Australia to Reach 40% Renewables – renewable-ei.org

RENEWABLE ENERGY INSTITUTE RENEWABLE ENERGY INSTITUTE

22 July 2026
in Japanese
Renewable Energy Institute released today “Rapid Growth in Distributed Solar and Batteries Enables Australia to Reach 40% Renewables.”
Australia is one of the world’s most advanced markets for the deployment of distributed solar photovoltaic (PV) and the integration of battery storage. These two technologies play central and complementary roles in the country’s efforts to increase the share of renewable electricity from nearly 40% in 2025 to 82% by 2030.
Australia has also long been an important trading partner for Japan, particularly as a major supplier of thermal coal and liquefied natural gas. The transformation of Australia’s power sector from fossil fuels toward renewables should therefore be of considerable interest to Japan.
Drawing on up-to-date data and numerous exchanges with Australian energy experts, this report examines Australia’s transition from a centralized power system toward a more distributed one. It identifies lessons for developing a power system that is affordable, resilient, and sustainable.
Solar PV provides abundant, low-cost, decarbonized electricity, while batteries are emerging as the critical source of flexibility needed to integrate high shares of solar generation from both economic and technical perspectives. This transformation creates substantial opportunities, but also new challenges that require innovative services and policies. In these areas, Australia is demonstrating strong leadership.

Introduction
Key Findings
Section 1: Distributed Solar PV – A Disruptive Revolution for the Power System
 1) Rapidly expanding residential rooftop PV partially meets power system needs
 2) Negative wholesale electricity prices are more frequent, with both pros and cons
 3) Utility-scale solar PV is also affected by residential rooftop PV expansion
Section 2: Battery Storage – A Key Enabler of Solar PV Integration
 1) Utility-scale batteries dominate energy storage deployment
 2) Distributed battery deployment is accelerating rapidly
 3) Long-duration energy storage complements short-duration batteries
Conclusion
 

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