Australia’s rooftop solar capacity now exceeds total coal-fired power

Growth in renewables is lowering the country’s exposure to international fossil fuel markets.

Australia’s electricity sector is showing resilience to global energy shocks, as wholesale electricity prices remain subdued at around AUD$70 ($50.60) per megawatt-hour (MWh) during quarters one to two.

According to Wood Mackenzie, this represents a stark contrast to the 2022 Russia-Ukraine crisis, in which wholesale prices increased by around 200% and averaged above AUD $250 ($180.74) per MWh.

“Growth in renewables and batteries, reduced reliance on gas-fired generation, and the rise of distributed energy resources are lowering exposure to international fossil fuel markets,” said Natalie Thompson, senior research analyst, energy storage and solar at Wood Mackenzie.

Batteries' share of price-setting has risen to roughly 20% by late 2025, whilst gas has decreased from 10% to less than 5%.

Moreover, the country’s distributed solar revolution has reached material scale, with more than 4.3 million rooftop solar systems installed nationally.

Combined residential solar capacity now exceeds the total capacity of existing coal-fired power plants, reducing grid demand.

However, residual vulnerabilities remain, as extended periods with little sun or wind still require dispatchable backup generation, currently dominated by gas-fired plants.

1.00 AUD = 0.7230 USD