The monthly ups and downs of the Australian solar industry have rightly been described as a “solar coaster”.
But there’s one figure that’s risen again and again, without falling since 2010. That’s the average system size. In 2023 it rose to a new record 9.4kW/system.
What’s behind ever-growing system sizes?
- Firstly, as panel prices have decreased, people can afford a larger system. In the early days of the solar industry, panels made up the bulk of the price of a system. Nowadays it costs little extra to get a larger system. (SunWiz subscribers will note consumers are spending the same amount as previously even as PV systems decline in price-per-Watt, investing the savings into a larger system, albeit using lower-priced brands).
- Secondly, it makes sense to maximise your system size. Ever-changing regulations present barriers to upgrading systems at a later date, making it sensible to do it once. Concerns about limited network PV hosting capacity also make it sensible to maximise your network allocation with a bigger system.
- Thirdly, people are planning for the future. Electric Vehicles will considerably increase household electricity consumption, as will other electrification efforts. People are putting in a PV system now that will service their future needs.
- Fourthly, commercial PV system volumes have grown faster than residential system volumes. As commercial systems make up a greater proportion of total systems, average system size increases.
The 2024 Annual SunWiz Australian PV Market Report deep dives into the most popular system sizes.