Residential solar installations in Australia have been growing significantly since around 2017.
The growth rate accelerated notably in 2020 due to the COVID-19 lockdowns, which saw a surge in installations as more people worked from home. This trend has continued, with Australia adding substantial new capacity each year. By the first quarter of 2024, Australia had installed over 22.58 GW of rooftop solar.
By the end of 2024, Australia is expected to have enough solar panels installed to power 5 million homes. This growth is driven by decreasing solar panels and installation costs, favourable government policies, and increasing awareness of renewable energy benefits.
What Is DER And What Can People Do With It?
DER – Distributed / decentralised Energy Resources are renewable energy units or systems that are commonly located in houses or businesses to provide them with power.
Common DER assets include rooftop solar PV units, battery storage, thermal energy storage, electric vehicles & chargers, smart meters, and home energy management technologies.
These DER assets not only allow consumers to generate energy in a cost-effective way for their own consumption, or use their energy more effectively and smartly, but also enable consumers to participate in a wider grid service to generate extra revenue from their energy assets.
One of the most well-known and widely discussed DER applications / concepts is a Virtual Power Plant (VPP), where thousands of households or commercial solar and battery installations are being aggregated to form a large power station with a collective power capacity comparable to or even larger than a conventional power plant.
Consumers will be rewarded through credits to their electricity bills by participating in these network services, and therefore enhance their return on investment on their solar and battery systems.
Current Market Development At A Glance: Home Solar-Battery System And VPP Services
The initial drive for the roll-out of home solar-battery systems, which are the hardware foundation of VPP services, was led by state governments and utilities.
South Australia (SA) has been a leader in promoting home battery systems through initiatives like the Home Battery Scheme, supported by the Clean Energy Finance Corporation. This scheme has enabled many households to install battery storage systems, contributing to the state’s renewable energy goals. Additionally, the SA Virtual Power Plant (VPP) program, developed in collaboration with Tesla and Energy Locals, is a notable example of how households can participate in a network of distributed energy resources.
NSW (although not state-wide), ACT and VIC also have their own state government funded programs in terms of interest-free loans, grants or rebates to support installations of home solar-battery systems. As of 2024, NSW has seen a significant uptake in its Empowering Homes program, which offers interest-free loans for solar-battery systems.
Among all VPP programs available within the Australian market, the big 3 Gentailers – AGL, Origin Energy, and Energy Australia take big shares, thanks to their strong existing energy retail client bases. Origin Energy, for instance, has announced plans to expand its VPP capacity to 2,000 MW by 2028.
Battery system manufacturers like Tesla and Sonnon joined the competition by launching their own energy plans in collaboration with white-label energy retailers. Tesla’s VPP in South Australia, for example, has grown to include over 50,000 homes.
In addition to this, more start-up installers and energy retailers such as ShineHub, Social Energy, and Discover Energy to name a few, have rapidly emerged in recent years. These ‘disruptors’ have been adding more product and consumer revenue options to the market.
To facilitate the growth and transition of DER applications in Australia, the Australian Renewable Energy Agency (ARENA) awarded nearly $10 million in funding to DER projects and studies to further integrate DER to the electricity system in 2019. By 2024, ARENA has continued to support DER integration with additional funding and initiatives.
That same year, ARENA also launched and led the Distributed Energy Integration Program (DEIP), bringing together government agencies, market authorities, industry and consumer associations aimed at maximising the value of DER for all energy users.
In addition to this, the Australian Energy Market Operator (AEMO), under the support of ARENA, also initiated VPP demonstrations to gain more visibility of VPP behaviours from the network services and operations perspectives. As of 2024, these demonstrations have expanded to include over 300 MW of VPP capacity across various states.
New Emerging Opportunities & Roles
Although a lot of work around regulations, economics and technologies has already been done, these will still need to be optimised before a more extensive adoption of DER applications. This will naturally create further opportunities for the talent market .
Both the network’s operators and regulators need to develop relevant regulations, compliances and standards to enable smooth connection of DER assets into the utility grid, ensuring market norms as well as competitiveness in this emerging sector. As of 2024, the Australian Energy Market Commission (AEMC) has been actively working on new rules to better integrate DERs, including updates to the National Electricity Rules to accommodate the growing number of DERs.
This is to ensure that mass application of the new technology does not damage the stability and reliability of the electricity network from a technical perspective. while introducing new & healthy competition to the market from an economic perspective. The Australian Energy Market Operator (AEMO) has also been enhancing its Distributed Energy Resources Register to improve visibility and management of DERs across the grid.
On the technical side, power engineers are required to study the host capacity of the grid for DER asset integrations and their impact on the reliability and stability of the electricity network. Recent studies have shown that integrating DERs can improve grid resilience if managed properly, but it requires advanced grid management technologies and real-time data analytics.
On the customers’ end, to orchestrate thousands of different types of DER assets, a strong energy management system to automate the electricity dispatching and demand response is required. This will create job opportunities such as Aggregation Engineers, Big Data Scientists, Software Engineers, IT Project Managers, etc. The demand for these roles is expected to grow significantly, with the global DER management market projected to reach USD 1.3 billion by 2027.
Furthermore, maximising the value of DER for end-users and energy retailers will rely on effective business model design, where energy retail tariff and pricing strategies may need to be developed. As a result, roles like Pricing Analysts, Product Design Managers, DER Strategists will also need to be created. Innovative pricing models, such as dynamic pricing and peer-to-peer energy trading, are being explored to enhance the economic benefits of DERs.
In addition to technical and economic considerations, cybersecurity has become a critical aspect of DER integration. Ensuring secure communication and data exchange between DERs and the grid is essential to protect against potential cyber threats. This has led to the creation of roles focused on cybersecurity within the energy sector, such as Cybersecurity Analysts and DER Security Specialists.
With extensive experience working with clients from a range of industries, Anávo takes pride in being the pioneer in recruiting for renewable sectors. If you are in a look for a skilled talent who is striving to make a difference or wants to learn more about a specific job opportunity, then get in touch with us.
About the Author:
Jan is Anávo's VP of Global Talent Acquisition and he aims to continue making the world more aware of climate change & the importance of utilising clean energy for a better tomorrow.
Read more about Jan Rieche.
