Australians continue to embrace rooftop solar at an accelerated pace, with new data from the Clean Energy Regulator (CER) revealing a substantial surge in installations during the first quarter of 2026. The CER’s latest Small-scale Technology Certificate (STC) creation figures, released on 26 April 2026, indicate a robust market, driven primarily by persistent high electricity prices and a desire for greater energy independence among households and small businesses.
The data shows that 8.5 million STCs were created in Q1 2026, representing approximately 2.1 gigawatts (GW) of new small-scale solar capacity installed across the country. This marks a notable increase compared to Q1 2025, which saw 7.2 million STCs (1.8 GW) generated. The average system size installed during this period also grew, reaching an estimated 8.2 kilowatts (kW), up from 7.5 kW in the previous year, reflecting a trend towards larger systems to maximise self-consumption and offset rising grid costs.
“The consistent growth in rooftop solar installations underscores the economic imperative for many Australian households to take control of their energy bills. The Q1 2026 figures demonstrate a clear market response to current energy prices and ongoing state incentives,” stated a CER spokesperson on the release of the data.
State-by-State Solar Boom
The growth was not uniform across all states, with Queensland and New South Wales leading the charge. Queensland accounted for approximately 30% of national STC creation in Q1 2026, followed closely by New South Wales at 28%. Victoria and South Australia also showed strong uptake, contributing significantly to the national total.
| State | Estimated New Capacity (MW) Q1 2026 | Share of National STCs Q1 2026 |
|---|---|---|
| Queensland | 630 | 30% |
| New South Wales | 588 | 28% |
| Victoria | 441 | 21% |
| South Australia | 210 | 10% |
| Western Australia | 126 | 6% |
| Other | 105 | 5% |
This regional disparity can be attributed to a combination of factors, including population density, solar irradiance levels, and the availability of state-specific incentives. For instance, Queensland’s strong performance is bolstered by its high solar penetration rates and favourable climate, while NSW continues to see strong interest in its various energy-saving programs.
Driving Factors: High Bills and Rebates
The primary catalyst for this sustained growth remains the escalating cost of grid electricity. With wholesale energy prices continuing to influence retail tariffs, many Australians are seeking long-term solutions to mitigate their power bills. A typical 6.6 kW rooftop solar system, after factoring in STCs, can cost between AUD$7,500 and AUD$10,000 for a standard installation, offering a payback period of 3-5 years depending on household consumption and feed-in tariffs.
While federal rebates via STCs remain a significant incentive, state-level programs also play a crucial role. Victoria’s Solar Homes Program, offering rebates of up to AUD$1,400 for solar panel installations and interest-free loans, continues to drive uptake. Similarly, various NSW initiatives, though not always direct rebates on panels, encourage energy efficiency and solar adoption, helping residents cut their electricity bill this winter in Australia 2026.
The Role of Batteries and Future Outlook
While the Q1 2026 data primarily reflects solar panel installations, the increasing interest in home battery storage is also a contributing factor to larger system sizes. Many homeowners are installing larger solar arrays with a view to adding batteries in the near future, especially with the evolving landscape of Australia’s new tiered home battery rebates post-May 2026.
The CER’s figures underscore a resilient and growing market for rooftop solar. As energy prices remain a top concern for households and businesses, the economic case for solar continues to strengthen. However, consumers are advised to exercise due diligence when selecting an installer. Ensuring the chosen provider is Clean Energy Council (CEC) accredited and offers comprehensive warranties is critical to a successful and long-lasting installation. For guidance on this, readers can refer to our guide on how to choose a solar installer in Australia 2026.
The consistent uptake of rooftop solar is a vital component of Australia’s transition to a cleaner energy future, reducing demand on the grid during peak times and empowering consumers with greater control over their energy consumption and costs. The Q1 2026 data suggests this trend is set to continue, with solar remaining a cornerstone of household energy strategies across the nation.