The next step in the evolution of the HVAC&R market is the development of solar. As the market matures, solar is increasingly looking to capture the commercial rooftop market. To chart this progression, CCN introduces a regular solar feature in the monthly magazine.
A key development in the Australian solar market is the growing number of commercial rooftop arrays.
Rising electricity prices and a greater focus on energy efficiency means the business case for commercial rooftop installations is a compelling one.
And with the removal of subsidies in the residential sector – a market that has boomed in recent years – it’s not surprising to find the solar industry now looking at commercial installations for future growth.
Installers say one barrier to the commercial market is often related to regulatory restrictions, getting permit approvals and dealing with utility companies.
A report released by the Australian PV Association (APVA) confirms a drop in the residential market as growth shifts to the commercial and medium-scale market.
“As the residential market stabilises, growth is expected in the commercial and medium-scale market,” the report says. “This requires different skill sets with more emphasis on engineering and individual system design and will therefore see a shift in the type of PV business operations.
“For this market to develop more standardised procedures and utility requirements will be needed. Working with the electricity sector to establish these will be a key focus for industry bodies over the next few years.
“Until now interest from utility businesses has mostly come in the form of concern about potential impacts as opposed to real problems.”
The problem is that established generators are losing market share to PV, the report says.
“Both the networks and retailers earn most of their revenue from kWh sold and have been impacted by demand reduction due to distributed PV systems.”
Looking beyond 2014, the report predicts 15 per cent growth in off-grid and distributed PV markets, as well as more commercial scale PV systems, including three 50MW plants by 2020.
“Solar PV is likely to become a significant portion of Australia’s energy mix over coming decades,” the report says, pointing out that Australia’s solar market has been one of the first in the world to reach grid parity.
Although growth rates began to fall in 2013, the report says the market is starting to be less subsidy driven and more by a desire for longer term electricity price surety.
In 2012, a total of 1038MW of PV was installed in Australia (98 per cent grid-connected) with the total installed capacity reaching over 2.4GW.