Why Rooftop Solar Is So Much Cheaper in Australia Than America

If America wants to decarbonize its electricity sector, it should pay attention to Australia's rooftop solar market.

This edition of the newsletter is adapted from a YouTube video I just released on the same topic. If you like reading words on a screen, scroll on. If you prefer pretty pictures, click the link above for a more visual version of the story.

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In Australia, more than a third of all homes have solar panels installed on their roof. Sometime in the next year, rooftop solar is expected to beat out coal to become the country’s largest source of electricity.

No country has been more successful at encouraging rooftop solar adoption than Australia. To put the country’s success in perspective, consider that in America, just 2.5% of homes have rooftop solar.

Australia’s rooftop solar success puts even California’s renewable energy progress to shame. The country has three times more rooftop solar installations per capita than the Golden State. 

There are many differences between America and Australia’s energy policies and markets. But if you want to understand why Australia has installed so much more rooftop solar than America, there’s only one difference that truly matters. That difference is cost. 

In Australia rooftop solar costs less than $1 per watt to install. In America, installation costs range from $2.20 to $3.50 per watt depending on which state you live in, with a median cost of $2.80 per watt. 

“Australian rooftop solar is the cheapest retail energy ever provided to consumers in human history. It is extraordinary,” said Saul Griffith, an energy entrepreneur and co-founder of Rewiring America. 

Griffith, who won the MacArthur “genius” award in 2007, has spent the last few decades living between his home country of Australia and America. He’s installed solar panels on homes in both countries and studied each country’s respective solar markets and policy landscapes. That experience opened his eyes to what he’s come to see as one of the biggest barriers to decarbonization in America. 

Recently I spoke to Griffith to learn why rooftop solar is so much cheaper in Australia than America.