New data from Australia’s Clean Energy Regulator (CER) confirms that the nation’s handover from coal to renewables is gathering pace, with the April-June quarter delivering new records for rooftop solar and small-scale battery energy storage installations, and large-scale solar investment.
The CER’s latest Quarterly Carbon Market Report shows rooftop solar installations exceeded 1 GW for the first time in the April to June quarter, breaking the previous quarterly record of 942 MW set in the final quarter of 2023.
It was also a record quarter for large-scale solar with 1.8 GW reaching final investment decision (FID), making it the strongest quarter since 2022 and the best for utility-scale solar investment since the CER began tracking final investment decisions.
Small-scale battery installations also reached a record high in the June quarter with more than 111,000 batteries approved and 3.6 GWh of capacity installed.
Large-scale batteries also continued to expand with a total of 4.2 GWh of storage capacity either reaching FID or commencing operations in the second quarter of 2026.
“The speed of the transition is accelerating,” CER Acting Chair Carl Binning said. “We are seeing ongoing growth and record outcomes across the CER’s administered schemes and markets, from rooftop solar and household batteries to large-scale solar investment.”
Renewable generation continued to grow in the quarter, accounting for about 42% of National Electricity Market (NEM) generation, up from 37% in the same period last year.
The regulator said major catalysts for the growth include rapidly falling battery storage costs and ongoing development of Capacity Investment Scheme (CIS) backed projects.
Of the large-scale solar capacity that reached FID in the June quarter, 881 MW came from projects receiving support under the federal government’s revenue underwriting scheme. These include Edify Energy’s neighboring 300 MW Guthrie’s Gap and Smoky Creek hybrid solar and battery projects in Queensland.
The CER also pointed to the federal government’s Cheaper Home Batteries Program, saying it has “unleashed demand” for small-scale renewables.
At the end of its first year, storage capacity approved under the rebate scheme reached 12.4 GWh across more than 438,000 installations, with more than 500,000 applications received by mid-August.
The regulator said installation activity had surged ahead of reforms to the program that took effect on 1 May, with the scheme contributing to the “exceptionally strong” rooftop solar installations during the quarter.
“More than 80% of small-scale solar installations in April were installed alongside a battery, suggesting households accelerated combined solar and battery installations ahead of the May 1 changes,” the CER said.
The regulator said demand for residential batteries has remained robust since the reforms took effect, although the average battery capacity decreased from 36 kWh in April to about 23 kWh in May and June, suggesting the revised incentive settings reduced demand for larger battery systems.
The average system size for a rooftop solar system in the June quarter was 10.5 kW and has now been greater than 10 kW for the past four quarters.
While small and large-scale solar installations and investments reached record highs in the June quarter, approvals for mid-scale commercial and industrial renewable energy projects were below historical averages.
This is expected to change in coming months with the Australian government’s recent expansion of Small-scale Renewable Energy Scheme eligibility to systems up to 1 MW from Oct. 1, 2026, (subject to regulations being in place) tipped to provide a boost for the mid-scale solar sector.
“Expanding the Small-scale Renewable Energy Scheme, expected from October, will help businesses, farmers and community organisations install mid-scale solar and reduce their energy costs,” Binning said.
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