A report published by the Clean Energy Council (CEC) shows that solar panels installed in Australian homes has grown 35-fold over the last three years. The report found that over 1 million Australians now live in homes powered by solar panels.

 

"Household solar power still contributes a modest proportion of Australia’s renewable energy, but its record growth in 2010 and 2011 is starting to reduce demand across the country while making a significant contribution to the country’s energy mix," the report found.

 

The report found that increased demand had driven the price of solar panels down, in turn generating further demand.

 

"The cost of solar PV continues to fall rapidly and is expected to reach the cost of grid electricity towards the middle of the decade," the report found

 

The report generally paints a positive picture of the growth of the renewable energy sector, finding that a little over 9 per cent of power demand is met by the renewable sector.

 

"The renewable energy generated during the 12 months to the end of September 2011 produced enough electricity to power the equivalent of more than 4 million average Australian households," the report concludes.

 

However, the report found that increased policy and investment uncertainty continued to restrict growth in the sector. Specifically, the tariff reductions in Western Australia, NSW and Victoria had contributed to general uncertainty.

 

"Policy and investment uncertainty continued to be major issues for clean energy companies in 2011, as was the case in the year before. Investors watched the the lively political debate over a carbon price apprehensively."

 

The full report can be found here