It’s no surprise that the uptake of solar energy has increased in recent years. Even those of us in the industry can be left awestruck at the exponential growth. Not only have the costs associated with solar declined rapidly but global solar installations have exploded, and no one – not even the International Energy Agency – saw it coming.
In fact, installed solar capacity globally has increased tenfold in the past 10 years. For perspective, where in 2004 it took one year to install 1 gigawatt of solar capacity globally, this is happening daily in 2024.
China’s uptake of solar has helped this expansion along. In 2023 China installed as much solar capacity as the whole world did in 2022.
The Economist’s recent special report – “The Dawn of the Solar Age” – asserts that by the mid 2030s, solar is set to become the world’s biggest source of electricity.
What’s more, the report indicates that in less than the time it takes to build one nuclear reactor, solar will have again increased tenfold (the equivalent of multiplying the world’s entire nuclear reactor fleet by eight).
In Australia, more than 30% of homes have solar rooftop installed, putting us in a position of global leadership when it comes to solar adoption.
It’s an exciting time to be invested in solar.
Like with all technology advancements, solar also presents a series of exciting challenges.
Excess solar on the grid
Rooftop solar not only generates clean energy to power individual households, but it also feeds excess energy back to the grid. Most of these solar exports happen in the middle of the day when energy demand is generally low. Too much solar energy and not enough demand poses a challenge for maintaining a stable grid network. As solar uptake increases across the country, the amount of solar being fed back to the grid is also increasing. Renewables, including rooftop solar, reached a new record of 73% in the National Electricity Market (NEM) in September 2024, and the market operator is said to be preparing the grid to accommodate 100% renewables in the near future.
The solution
Network operators now have mechanisms in place to switch off solar panels to prevent grid emergencies and blackouts caused by an oversupply of energy in the grid (and minimum demand for energy). Solar owners can be part of the solution by installing a solar battery, which stores some of the excess solar energy they generate. One step better, solar + battery owners can be part of a Virtual Power Plant (VPP) which helps manage excess solar on the grid while paying participants for being involved.
Peak energy demand
On the other side of the coin, the drop in solar energy being fed to the grid also presents a unique challenge. As solar generation begins to decline each afternoon, demand for electricity increases, which can create an imbalance on the grid network. While energy sources like wind, solar and gas can be switched on and off relatively easily, coal grid generators take up to 48 hours to ramp up. And this makes it hard to manage the peaks and troughs in energy demand that occur over a 24-hour period.
The solution
Network operators can switch off parts of the network in emergency situations when demand for energy exceeds the available supply. Load shedding and blackouts are hugely unpopular and usually only implemented as last resort. The community can be part of the solution and help the grid transition to clean energy by reducing energy use on very hot summer afternoons, when possible. Households can also install solar + battery systems to reduce their reliance on the grid. When energy demand on the grid peaks, solar battery owners are usually drawing energy from their batteries. And one step better again, being part of a VPP, a network of solar batteries that operate as one to support the grid, allows solar + battery owners to benefit financially when the energy in their batteries is used to give the grid a boost.
These clever solutions are helping supercharge the clean energy transition. And many are made possible through the power of the people.
Consumer energy resources
An increasing number of Australians are pursuing energy independence and installing solar batteries and other technology to reduce costs and improve their household energy stability. The Australian Energy Council reported that solar batteries surpassed 250,000 at the end of 2023. Household batteries increased by a further 30% in 2024 with more than 28,000 installations.
On the path to Net Zero by 2050, Australia’s Market Energy Operator (AEMO) has stated that a valuable part of the transition away from coal-fired electricity will be ‘consumer energy resources’ such as rooftop solar, battery storage, and electric vehicles.
These are in fact essential components of the overall approach, in order to minimise the cost of the transition while maintaining stability.
Part of the story is decentralised networks, such as Plico’s Virtual Power Plant (VPP), which can manage the supply of power that is generated across individual solar + battery systems. VPPs can smooth peaks and troughs in demand on the electricity grid, balancing output and demand, and providing uninterrupted supply. All while generating revenue for participants.
These kinds of cutting-edge solutions in some ways sound futuristic – but not only are they possible they’re here, now. And they’re essential, if we are to maintain cost-effective and reliable electricity supply as we transition to a future powered by clean energy.
If you’d like to find out more about how Plico supports you for the long haul, talk to the friendly team and discover how much you could save. In addition to ongoing support, when you’re with Plico you will be able to access power during night times, blackouts and outages too!
You could start saving now - view our different solar + battery, solar or battery only systems by clicking here or calculate your projected savings with our Solar Savings Calculator. You can also get in touch with one of our switched-on people at Plico by calling 1300 175 426 to see how a solar + battery solution can help you save.
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