Last month the Australian Energy Market Operator (AEMO) released their Integrated System Plan (ISP). We are breaking down the most important findings for you.
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- They found that by 2040 rooftop solar installations in Australian homes and business will be generating between 31-50TWh of power across the National Electricity Market.
- The energy generated by these rooftop solar systems will account for 22% of the national demand for energy.
- Small-scale solar alone is expected to supply more than half of the 40% by 2040 target.
- The move towards small-scale solar systems are going to deliver cost saving to consumers by:
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- Reducing the need for utility-scale renewable generation – cutting the costs associated with connect these assets into the system.
- Lowering overall system losses, done so by gaining efficiency by generating at the point of consumption.
- Reducing local peak loads that distributed solar and storage had on reducing local peak loads, providing network savings at both transmission and distribution level.
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- Through the process they tested the ISP at a High Distributed Energy Resources (DER) scenario. They found that when this occurred (more smaller generation units that are located on the consumer’s side of the meter) savings were at the greatest.
- The AEMO are confident that due to continuously decreasing cost of Solar PV and Battery systems, growth in installation numbers will continue. This assumption is backed by the latest data from the Australian PV Institute, which placed the rooftop solar tally at 1.8 million installed (over 160,000 in 2017 alone).
- The Australian PV Institute report also found that commonly these systems are being paid back in 3-5 years.
- The expectation is that by 2040 the nation’s coal-fired legacy will not be overtaken by wind or solar farms, but by the rooftop solar boom.
Are you ready to be part of this change? Request a quote today.
