Australia Distributed Energy Market

Australia Distributed Energy Market Overview:

The Australia distributed energy market size reached USD 7.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 19.9 Billion by 2033, exhibiting a growth rate (CAGR) of 10.6% during 2025-2033. The market is expanding due to rising electricity prices, government incentives, and falling renewable technology costs. Increasing adoption of rooftop solar and battery storage is driven by consumer demand for energy independence. Additionally, grid modernization, virtual power plants (VPPs), and peer-to-peer trading are accelerating decentralization, supported by regulatory reforms promoting renewable integration and energy flexibility.

Australia Distributed Energy Market Trends:

Rapid Growth in Rooftop Solar Installations

The significant rise in rooftop solar installations, driven by declining system costs, government incentives, and rising electricity prices, is favoring the Australia distributed energy market growth. Households and businesses are increasingly adopting solar photovoltaic (PV) systems to reduce energy bills and achieve energy independence. Net energy consumption in Australia increased by 2% to 23,294 PJ in 2022–23, and renewable energy generation increased to 325 PJ (33% of electricity generation). This growth was dominated by solar energy, which climbed 21% to 151 PJ and reflects the growing solar panel sector. As household energy consumption rose by 3% and solar energy continued to expand, the demand for solar solutions in Australia remains robust. Battery storage adoption is also rising, enabling consumers to store excess solar energy for later use, further enhancing grid resilience. Utilities and energy retailers are responding by offering tailored solar and battery packages, while grid operators are implementing dynamic pricing and virtual power plant (VPP) programs to integrate distributed solar into the energy mix efficiently. As technology advances and financing options expand, rooftop solar is expected to remain a dominant trend in Australia's transition toward a decentralized energy future. Therefore, this is creating a positive Australia distributed energy market outlook.

Increasing Demand for Virtual Power Plants (VPPs) and Peer-to-Peer Trading

Virtual Power Plants (VPPs) and peer-to-peer (P2P) energy trading are gaining traction in Australia’s distributed energy market as innovative solutions to optimize renewable energy use. VPPs aggregate distributed energy resources (DERs), such as rooftop solar and batteries, to provide grid stability and reduce reliance on traditional fossil fuel plants. Australia installed 28,262 solar batteries in 2024, up 4.9% from 2023. This increases the total of hybrid systems to 121,551, or 3% of all solar energy users. New South Wales, Victoria, and South Australia lead the charge, underpinned by state rebate programs. Solar-plus-storage systems are emerging as a major piece of Australia’s shift to clean energy as growth persists. Companies are leading large-scale VPP projects, offering financial incentives for participants. Meanwhile, blockchain-enabled P2P energy trading platforms allow consumers to buy and sell excess renewable energy directly, promoting local energy sharing and reducing transmission losses. Regulatory reforms, such as the Australian Energy Market Commission’s (AEMC) updates to energy rules, are supporting these trends by enabling more flexible market participation. As digitalization and smart grid technologies advance, VPPs and P2P trading are expected to play a pivotal role in Australia’s energy decentralization, expanding the Australia distributed energy market share.

Australia Distributed Energy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on technology and end use industry.

Technology Insights:

• Micro-Turbines
• Combustion Turbines
• Micro-Hydropower
• Reciprocating Engines
• Fuel Cells
• Wind Turbines
• Solar PV

The report has provided a detailed breakup and analysis of the market based on the technology. This includes micro-turbines, combustion turbines, micro-hydropower, reciprocating engines, fuel cells, wind turbines, and solar PV.

End Use Industry Insights:

• Residential
• Commercial
• Industrial

A detailed breakup and analysis of the market based on the end use industry have also been provided in the report. This includes residential, commercial, and industrial.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Distributed Energy Market News:

• February 04, 2025: Canopy Power and Ocean Sun unveiled a 700 kWp floating solar system in Australia that features a special 70-meter-wide membrane design capable of harvesting rainwater. Designed for sustainable future, this versatile solution targets water-scarce and land-scarce areas and can easily mesh with microgrids and battery storage systems. This project advances Australia’s clean energy objectives and enhances solar technology utilization on water bodies.
• December 02, 2024: Itron introduced its Low Voltage Distributed Energy Resource Management System (LV DERMS) in Australia, in partnership with Jemena, to meet the rising penetration of rooftop solar and enhance grid stability. Starting October 1, 2024, any new solar installations in Victoria must adhere to DERMS-compatible standards, enabling real-time control of solar power during grid disturbances. This program is a major step forward for Australia's distributed energy management and is focused on providing reliable, data-driven grid operations.

Australia Distributed Energy Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia distributed energy market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia distributed energy market on the basis of technology?
• What is the breakup of the Australia distributed energy market on the basis of end use industry?
• What is the breakup of the Australia distributed energy market on the basis of region?
• What are the various stages in the value chain of the Australia distributed energy market? 
• What are the key driving factors and challenges in the Australia distributed energy market?
• What is the structure of the Australia distributed energy market and who are the key players?
• What is the degree of competition in the Australia distributed energy market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia distributed energy market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia distributed energy market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia distributed energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.