Australia’s clean energy transition accelerated at an unprecedented pace in the second quarter of 2026, with the nation recording its highest-ever quarterly rooftop solar installations, significant growth in household battery deployments, and record large-scale solar investment. The Clean Energy Regulator’s (CER) Quarterly Carbon Market Report for Q2 2026, released on August 28, 2026, details a market surging forward, driven by consumer demand and supportive government initiatives.
The report reveals that 1 gigawatt (GW) of rooftop solar was installed across Australia between April and June 2026, shattering the previous record of 942 megawatts (MW) set in Q4 2023. This surge underscores the continued strong appetite among Australian households and businesses to embrace solar power, seeking to reduce their electricity bills and enhance energy independence.
Rooftop Solar Powers Ahead
The milestone of 1 GW of rooftop solar in a single quarter highlights the maturity and efficiency of Australia’s distributed energy sector. This growth is a direct reflection of households actively investing in their energy future, with many homeowners now seeing solar as a fundamental component of their energy strategy. The consistent improvement in solar panel efficiency, now often exceeding 22% for leading residential models, allows for greater energy generation from limited roof space, further incentivising uptake.
“Australia’s clean energy transition is gathering pace, with the June quarter delivering new records for rooftop solar installations, household batteries and large-scale solar investment.” — Carl Binning, CER Acting Chair
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Home Batteries Hit Half a Million Mark
The demand for household batteries also reached new heights, with the CER reporting over 500,000 battery applications since the inception of the Cheaper Home Batteries Program. This indicates a significant shift in consumer behaviour, with more Australians pairing their solar systems with storage to maximise self-consumption and provide grid stability. Demand for batteries ahead of the May 1, 2026, changes to the rebate structure contributed to a rush of combined solar and battery installations.
The Cheaper Home Batteries Program, which offers a discount of approximately 30% on the upfront cost of eligible small-scale batteries, has been a key catalyst. While the rebate value saw a reduction and became tiered from May 1, 2026, it continues to make battery storage more financially viable for many. The current rebate offers around $252 per usable kWh for the first 14 kWh of capacity, reducing for larger systems.
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Large-Scale Solar Investment Surges
Beyond rooftop installations, the large-scale solar sector also experienced a record quarter, with 1.8 GW of projects reaching a final investment decision. This marks the strongest quarterly result since the CER began tracking investment activity, signalling robust confidence in Australia’s utility-scale renewable energy pipeline.
This investment is critical for meeting Australia’s ambitious clean energy targets and ensuring a reliable grid as coal-fired power stations continue to retire. The Capacity Investment Scheme (CIS) is playing a significant role here, underwriting new generation and storage projects to accelerate their development. Just this week, the federal government launched CIS Tender 11, seeking another 1.8 GW of new solar and wind capacity in Western Australia, with bids opening on August 27, 2026.
Mid-Scale Solar Set for October 1 Boost
A significant policy change highlighted in the CER report, and previously announced by the Australian Government on August 5, 2026, is the expansion of the Small-scale Renewable Energy Scheme (SRES) eligibility. From October 1, 2026, solar photovoltaic (PV) systems with a total onsite capacity between 100 kilowatts (kW) and 1 megawatt (MW) will become eligible to create Small-scale Technology Certificates (STCs).
Previously, systems larger than 100 kW were only eligible for Large-scale Generation Certificates (LGCs), which typically involved a different and often more complex process. This expansion is designed to provide a substantial financial incentive for businesses, farmers, and community organisations to install larger mid-scale solar systems, helping them reduce operational costs and contribute to emissions reduction. The government intends for applications under this expanded scheme to open in mid to late November 2026.
This change addresses the “missing middle” in Australia’s solar market, offering a more direct and immediate upfront discount for commercial-scale installations. STCs are typically converted into a cash discount at the point of sale, making solar more accessible. For a system installed in 2026, certificates are generated for five years, providing a significant reduction in upfront capital expenditure.
Outlook: Continued Momentum
CER Acting Chair Carl Binning noted that progress across clean energy markets has exceeded many industry participants’ expectations. He emphasised that catalysts like the Capacity Investment Scheme, rapidly falling battery storage costs, and the Cheaper Home Batteries Program are unleashing demand for distributed energy resources. The ongoing development of low-carbon industrial processes and the Guarantee of Origin scheme are also expected to drive future growth.
As Australia moves towards its target of 82% clean electricity by 2030, the robust performance of the solar and battery sectors, coupled with strategic policy adjustments, indicates a resilient and rapidly transforming energy landscape. Businesses and homeowners alike are positioned to benefit from these developments, contributing to a more sustainable and affordable energy future.