What is solar power?
Solar power is clean energy created from sunlight, or heat from the sun.
Solar power is captured when energy from the sun is converted into electricity or used to heat air, water, or other fluids.
There are two main types of solar energy technologies:
- solar thermal — these systems convert solar radiation into thermal energy (heat). Most solar thermal systems use solar energy for space heating or to heat water (such as in a solar hot water system). The heat can also be used to generate electricity using steam and turbines. Such solar thermal electric generators are typically in the tens to hundreds of megawatts scale of generation, as these larger generators are more efficient.
- solar photovoltaic (PV) — the conversion of sunlight directly into electricity using photovoltaic cells. PV systems can be installed on rooftops, integrated into building designs and vehicles, or scaled up to megawatt scale power plants.
How is solar power used in Australia?
Australia has the highest average solar radiation per square metre of any continent in the world.
Hundreds of thousands of Australian households now have solar hot water systems or solar photovoltaic (PV) systems on their rooftop. Deployment of megawatt scale solar electricity generation systems is still at an early stage of development in Australia.
The outlook for electricity generation from solar energy depends critically on the commercialisation of large-scale solar energy technologies that will reduce investment costs and risks.
Research, development and demonstration by both the public and private sectors will be crucial to accelerating the development and commercialisation of solar energy in Australia, especially large-scale solar power stations.
Solar energy use in Australia is projected to increase by 5.9 per cent per year in 2029–30.
How is RET involved?
The Department of Resources, Energy and Tourism (RET) is responsible for the Solar Flagships Program. This program provides the foundation for large scale, grid connected, solar power to play a significant role in Australia's electricity supply and to operate within a competitive electricity market.
RET is also responsible for the Australian Centre for Renewable Energy (ACRE) Solar Projects.
The Australian Solar Institute (ASI) is an agency within the Resources, Energy and Tourism portfolio. The ASI receives Commonwealth funding from the Commonwealth under the terms and conditions of a funding deed between ASI and the RET.
The Australian Government announced its intention to establish the Australian Renewable Energy Agency (ARENA) as part of its Clean Energy Future package. ARENA will have an independent, decision making board appointed by the Minister for Resources and Energy.
ARENA's role will be to allocate funding to renewable energy and enabling technology projects, including taking over the administration of the Solar Flagships Program, the ASI and the ACRE Solar projects. RET will provide advice to ARENA to inform its consideration of options for the supporting solar power.
More information
For more information about the use of solar power in Australia, read the Australian Energy Resource Assessment (see Related documents).
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