The brightest star: Revenue skyrockets as a record number of solar farms comes online

The Solar Electricity Generation industry has undergone a period of immense revenue growth over the past five years. Industry revenue is expected to grow at an annualised 163.4% over the five years through 2018-19, to reach $583.4 million. This growth has been driven by the development of a multitude of large-scale solar farms, which have increased industry generation capacity from less than 50 MW in 2014 to over 2,400 MW in 2018. Industry generation capacity is expected to continue growing in 2018-19, as a record number of solar projects come online. Industry revenue is expected to increase by 115.7% in 2018-19.The industry's rapid growth over the past five years is partly attributable to a high level of industry assistance...read more.

Industry Statistics & Market Size
Revenue
$583m
Annual Growth 14-19
163.4%
Forecast Growth 19-24
Profit
Employment
617
Businesses
40

Industry Threats & Opportunities

  • The industry’s rapid growth is attributable to a high level of industry assistance
  • The greatest obstacle for industry companies has been storing power for later use
  • New industry entrants are anticipated to focus on energy storage assets
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is the growth phase of its life cycle. Large-scale solar generation has grown rapidly in Australia over the past five years, and this trend is anticipated to continue over the next five years. This growth has been driven by a range of industry assistance programs at the state and federal levels. Industry assistance is forecast to increase if Labor wins government at the 2019 Federal Election.Industry value-added (IVA) is a measure of an industry's contribution to the overall economy. Over the decade through 2023-24, IVA is expected to increase at an annualised 73.2%. This represents a significant outperformance of GDP growth, which is expected to be 2.7% over the same period. Outperformance of GDP growth is typical of growing industries. Oth...purchase to read more.

    Additional Insights for the Solar Electricity Generation Industry

    IBISWorld has determined the most important Key Success Factors for the Solar Electricity Generation are:

  • Ability to take advantage of government subsidies and other grants
  • Ability to control total supply on market
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Electricity service price and Demand from electricity retailing in the Solar Electricity Generation industry impact industry performance..

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    What's in this report

    What is the Solar Electricity Generation Industry?

    Industry firms supply electricity to the wholesale market using large-scale photovoltaic generation systems, or solar thermal systems. Photovoltaic systems with a generation capacity of less than five megawatts are excluded from the industry.

    Industry Products
  • Electricity generation
  • Renewable energy certificates
  • Industry Activities
  • Solar electricity generation
  • Concentrated solar thermal electricity generation
  • Solar electricity storing and dispatching
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Electricity service price
  • Demand from electricity retailing
  • Public concern over environmental issues
  • Demand from fossil fuel electricity generation

  • Current Performance
  • Electricity price growth
  • LGC price growth
  • Capacity growth
  • Industry assistance
  • Storing solar
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Solar Electricity Generation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Solar Electricity Generation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Electricity Retailing
  • Consumers

  • Key Selling Industries
  • Heavy Industry and Other Non-Building Construction
  • Heavy Machinery Repair and Maintenance
  • Industrial Machinery Manufacturing
  • Power Automation Products and Other Electrical Equipment Manufacturing

  • Products & Services
  • Electricity generation
  • Renewable energy certificates
  • Chart: Solar Electricity Generation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Electricity retailers
  • Commercial and services sectors
  • Households
  • Manufacturers
  • Mining firms
  • Utility providers
  • Other sectors
  • Chart: Major Market Segmentation for the Solar Electricity Generation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Solar Electricity Generation

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Solar Electricity Generation Industry

  • Industry Globalization
    Edify Energy Pty Ltd, Neoen Australia Pty Ltd, FRV Services Australia Pty Ltd, Enel Green Power Australia Pty Ltd, AGL Energy Limited, Sun Metals Holdings Limited,
  • Table: Edify Energy Pty Ltd - financial performance
  • Table: Neoen Australia Pty Ltd - financial performance
  • Table: FRV Services Australia Pty Ltd - financial performance
  • Table: Enel Green Power Australia Pty Ltd - financial performance
  • Table: AGL Energy Limited - financial performance
  • Table: Sun Metals Holdings Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Solar Electricity Generation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Solar Electricity Generation Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Gigawatt (Gw)
  • A unit equal to 1,000 megawatts.
  • Gigawatt Hour (Gwh)
  • The energy that is required to power 10 million 100-watt units, such as light globes, for an hour.
  • Large-Scale Generation Certificate (Lgc)
  • Certificates that allow electricity retailers to meet their RET responsibilities. One LGC is equivalent to one MWh of renewable energy.
  • Megawatt (Mw)
  • A unit equivalent to one million watts.
  • Megawatt Hour (Mwh)
  • One million watts of electrical power used for one hour.
  • Renewable Energy Target (Ret)
  • Regulation designed to increase the share of renewable generation in Australia. The current target is 33,000 gigawatt hours by 2020.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Solar Electricity Generation market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Solar Electricity Generation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Solar Electricity Generation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Solar Electricity Generation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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