The Clean Energy Regulator’s (CER) latest Quarterly Carbon Market Report (QCMR) shows Australian households and businesses led the way in 2023 with 3.1 gigawatts (GW) of rooftop capacity installed throughout the year.

CER Chair David Parker said consumers are preparing for a more electrified world with 331,000 new installations at a record average capacity of 9 kilowatts (kW).  If the increasing trend from the last 2 years continues, a new record for additional rooftop solar capacity may be set in 2024 as households and businesses continue to take control of their energy bills.

Energy efficient air source heat pumps also continue to be installed at record rates. 135,000 were installed in 2023 – a 55% increase on 2022.

‘The Large-scale Renewable Energy Target and Small-scale Renewable Energy Scheme continue to incentivise renewables investment. 2023 was the 6th year in a row where Australia added more than 5 GW of renewable capacity,’ Mr Parker said. 

2.2 GW of large-scale capacity was added in 2023. There is a strong pipeline of large-scale renewables with 6.5 GW of capacity under construction at the end of 2023 that will likely reach first generation of electricity from 2024 to 2026.

Renewables made up an average of 39% of generation in the National Electricity Market in 2023.  We expect it will be about 42% in 2024, just past the halfway mark to the government’s goal of 82% by 2030.

Wind and solar power station investment announcements eased this year, with 1.5 GW reaching a final investment decision. 2024 has started positively with 0.6 GW announced in January and we’re likely to see a step up in large-scale renewable investment in 2024 as the Australian Government’s Capacity Investment Scheme drives new investment decisions.

Mr Parker said the latest QCMR also reports 17.2 million Australian carbon credit units (ACCUs) were issued in 2023. In 2024, a new ACCU supply record of more than 20 million is expected. 

This ACCU supply is increasingly flowing into the accounts of Safeguard entities as they continue to accumulate ACCUs to meet compliance obligations under the reformed Safeguard Mechanism. Holdings in accounts of Safeguard entities increased by 4.1 million in the second half of 2023 to 7.4 million ACCUs.

‘The latest QCMR shows Australian Government schemes the CER administers made strong contributions to reducing Australia's emissions in 2023,’ Mr Parker said.

For more detail, read the latest QCMR.

Contact: media@cleanenergyregulator.gov.au or 02 6159 3448.