Australia is one of the fastest-growing solar energy markets in the world due to the rising demand for electricity and prolific solar resources. Evidently, the country continues to be a global leader in the per capita rollout of energy generated by solar and wind, per an analysis by The Australian National University (ANU).
Interestingly, about 99% of new renewables in Australia are solar photovoltaic (PV) and wind. Therefore, for solar companies across the globe, the Australian market offers a profitable investment abode. Impressive Solar Growth Trends in Australia
The growth of solar PV in Australia is driven by frequent renewable energy auctions and the offering of feed-in tariffs. In fact, in addition to the favorable federal initiatives, all eight provinces in Australia have their own schemes supporting the continuous growth of solar PV.
Another key catalyst driving solid installations in Australia is the lack of stringent regulations for installations that has kept installation prices considerably low. Evidently, residential solar systems are currently priced at about 70 cents per watt in Australia, including installation, which is quite lower than the equivalent price of $2.69 per watt in the United States. Moreover, solar electricity generation is increasing rapidly, backed by government policies, which include the Clean Energy Initiative Solar Flagships Program that has committed $1.5 billion to support the construction and demonstration of up to four large-scale solar power plants in Australia, using solar thermal and PV technologies. Such investments also play a vital role in the growth trajectory of the Australian solar market. What Lies Ahead for the Australian Solar Market?
Per a Mordor Intelligence report, the solar power market in Australia is expected to see a CAGR of 19.56% during 2020-2025. According to the Australian Energy Market Operator’s (AEMO) July Generation Information data, there are currently 95 proposed solar projects with 23 committed and under construction.
Stocks to Watch
Considering the aforementioned forecast, the below-mentioned solar stocks that have already set foot in Australia’s expanding solar market are expected to gain.
In April 2021, Enphase Energy's ( ENPH Quick Quote ENPH - Free Report) microinverters were selected by Transdev for the first public transport depot in Australia to feature a fully solar-powered bus. This will be beneficial for Enphase to grow its network in Australia, as Transdev plans to electrify the public transport network in Australia and make a transition to solar-powered electrical vehicle (EV) buses. Earlier, toward the end of 2020, Enphase Energy announced the launch of its Enphase Installer Network (EIN) in Australia. JinkoSolar's ( JKS Quick Quote JKS - Free Report) shipments to Australia passed the 3.2GW mark in May 2021. JinkoSolar was the first solar company to ship transparent back sheet bifacial panels at scale. It is also the first manufacturer to offer a full range of N-type modules to Australia. Canadian Solar's ( CSIQ Quick Quote CSIQ - Free Report) subsidiary, Canadian Solar Australia, signed a power purchase agreement (PPA) with Amazon in March 2020. Per the terms, Canadian Solar will supply its BiKu bifacial modules to Amazon. Interestingly, this is Canadian Solar's first PPA in New South Wales and marks its strategic entry into the large Australian Consumer and Industrial PPA market. More Stock News: This Is Bigger than the iPhone!
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