Residential Solar Slowdown & The Shift to New Opportunities
How the Residential Solar Market Declined & Where Retailers Should Focus Next The Australian residential solar market experienced a noticeable slowdown in 2024, marking one of its weakest years in recent history. According to the 2025 Annual SunWiz PV Market Report, the downturn was largely due to falling solar system prices reducing overall revenue, a sharp decline in small-scale residential installations, and changing market dynamics.We collect information from many data partners that together encompass a large portion of the total installations that occur each month. No other market analyst has collated such a dataset. From this we are able to make a confident assessment of which are the top volume brands. We don’t have complete coverage and we’re willing to be proven wrong (in which case we’ll note it here and amend our ranks).
Key Trends in the Residential Solar Slowdown
Reduced Residential Installation Volume
Total residential solar installations declined as consumer demand shifted away from smaller systems due to lower incentives and payback concerns. The biggest residential segments suffered the greatest contraction. This was almost-but-not-quite balanced by growth in 10-15kW systems.
Falling Equipment Prices Resulted in Lower Revenue
- While module and inverter prices declined, so did the total revenue generated per installation, putting pressure on solar retailers reliant on volume sales.
Small-Scale Residential Segment Suffered the Most
- The market segment below 10kW was hit hardest, as households hesitated to invest due to interest rate pressures and diminishing feed-in tariffs.
Where Should Retailers Focus Next?
Small-Scale Commercial Solar (15-30kW)
- With residential demand declining, solar retailers should shift their focus to the growing small-commercial market, where businesses seek long-term cost savings and energy independence.
Battery Storage – The Next Growth Market
- As self-consumption becomes more critical due to declining feed-in tariffs, battery storage solutions are gaining traction.
- The SunWiz Battery Market Report, due next month, will provide detailed insights into battery adoption trends, pricing shifts, and emerging opportunities.
Final Thoughts The decline in residential solar volumes presents both a challenge and an opportunity for the solar industry. While traditional small-scale residential sales have declined, small-commercial solar and battery storage represent the future growth drivers. Solar retailers who adapt their business models to these emerging trends will be best positioned for success in 2025 and beyond.– SunWiz
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