Australia’s clean energy transition is accelerating, with the nation recording unprecedented growth in both rooftop solar and home battery installations during the second quarter of 2026. New data released by the Clean Energy Regulator (CER) on 28 August 2026 confirms that 1 gigawatt (GW) of rooftop solar was installed across the country between April and June, marking a new quarterly record. This surge was complemented by a record 111,000 small-scale battery systems being approved and 3.6 GWh of capacity installed in the same period.
The CER’s latest Quarterly Carbon Market Report for Q2 2026 highlights a significant milestone for Australia, surpassing the previous rooftop solar record of 942 megawatts (MW) set in Q4 2023. The robust uptake in residential solar and battery storage underscores a growing consumer drive for energy independence and lower electricity bills amidst a transforming energy landscape.
“The speed of the transition is accelerating. We are seeing ongoing growth and record outcomes across the CER’s administered schemes and markets, from rooftop solar and household batteries to large-scale solar investment.” — Carl Binning, CER Acting Chair
This record-breaking quarter saw renewable generation contribute approximately 42% of the National Electricity Market (NEM) generation, a notable increase from 37% in the corresponding period last year. The CER attributes this rapid expansion to several factors, including rapidly falling battery storage costs and a significant push by households to bring forward combined solar and battery installations ahead of changes to federal battery rebate rules that took effect from 1 May 2026.
The Impact of Battery Incentives and Shifting Policy
The federal Cheaper Home Batteries Program, estimated to provide AUD 7.2 billion in support over four years, has played a crucial role in stimulating battery uptake. While the program’s Small-scale Technology Certificate (STC) entitlements saw a tapering schedule implemented from 1 May 2026, the anticipation of these changes spurred considerable demand in the lead-up.
As of 8 June 2026, over 460,000 solar batteries had been installed across Australia since 1 July 2025, accumulating 12.8 GWh of storage capacity. The Q1 2026 data further revealed that 71% of all new small-scale solar systems were installed with a battery. This trend reflects homeowners’ increasing desire to maximise self-consumption of their solar generation and reduce reliance on grid electricity, especially during peak evening periods. For those considering battery storage, understanding the ongoing incentives and how they integrate with solar systems is crucial. You can learn more about optimising your setup in our guide: Last Chance: Is It Too Late to Install a Home Battery Before the May 1st 2026 Rebate Changes in Australia?.
Commercial Solar Steps Up
Beyond rooftop solar, the CER report also noted a record quarter for large-scale solar investment, with 1.8 GW reaching Final Investment Decision (FID). This indicates robust confidence in utility-scale projects, which are essential for Australia’s broader energy transition targets. However, the report did highlight a persistent shortfall in mid-scale deployment—systems ranging from 100kW to 1MW, typically used by businesses, schools, farms, and community groups.
To address this “missing middle,” the Australian Government announced on 5 August 2026 that it would expand the Small-scale Renewable Energy Scheme (SRES) eligibility for solar PV systems from 100 kW to 1 MW. This change, subject to regulations being made, is expected to apply to mid-scale solar installed from 1 October 2026, with applications opening in mid to late November 2026. This policy shift is anticipated to provide a much-needed boost to the commercial and industrial (C&I) sector, which has significant untapped rooftop solar potential. The expansion is projected to reduce installation costs for C&I and agricultural rooftops by approximately 20%, potentially saving businesses up to AUD 68,000 on a 250 kW system or AUD 230,000 on an 850 kW system.
South Australia’s Solar Peak
While the national figures are impressive, South Australia recently demonstrated the immense potential of rooftop solar on a local scale. On 31 August 2026, rooftop solar met an astonishing 99.9% of South Australia’s total electricity demand at 1:30 PM, reducing demand from grid-scale generation to just 2 MW. This new winter record, reported by the Australian Energy Market Operator (AEMO) on 2 September 2026, also saw batteries charging at above-average rates to absorb excess renewable electricity for the evening peak. Such events underscore the critical role of distributed energy resources and battery storage in managing grid stability with high renewable penetration. For homeowners looking to understand the full costs and benefits of installing solar, our comprehensive guide on Solar System Installation Costs in Australia 2026: A Complete Guide provides valuable insights.
The Road Ahead
The Q2 2026 report paints a clear picture: Australia’s energy transition is gaining momentum, driven by both residential and large-scale solar, with battery storage increasingly vital for grid stability. The continued policy support and falling costs are making solar and battery systems more accessible and economically attractive for a growing number of Australians. The expansion of the SRES to include mid-scale solar systems is poised to unlock further significant capacity, moving Australia closer to its renewable energy targets and providing substantial bill relief for businesses and community organisations. The focus on integrating storage solutions, including Virtual Power Plants (VPPs), will be key to harnessing this growing solar capacity effectively. Maximising the value of exported solar power, especially with fluctuating feed-in tariffs, often involves smart energy management and battery storage, as explored in our article on Maximise Your Home Battery Savings: Earn $1,000+ Annually with a VPP in 2026.