Australia Distributed Generation Market (2025-2031) | Outlook, Analysis, Revenue, Forecast, Share, Value, Industry, Growth, Companies, Trends, Size

Market Forecast By Technology (Solar PV, Wind, Reciprocating Engines, Microturbines, Fuel Cells, Gas Turbines), By Application (On-Grid, Off-Grid), By End-User (Industrial, Commercial, Residential) And Competitive Landscape

Product Code: ETC4532436 Publication Date: Jul 2023 Updated Date: Aug 2025 Product Type: Report
Publisher: 6Wresearch Author: Summon Dutta No. of Pages: 70 No. of Figures: 35 No. of Tables: 3

Australia Distributed Generation Market Highlights

Report Name Australia Distributed Generation Market
Forecast period 2025-2031
CAGR 5.1%
Growing Sector Residential

Topics Covered in the Australia Distributed Generation Market Report

Australia Distributed Generation Market report thoroughly covers the market by Technology, Application and End -user. The market outlook report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.

Australia Distributed Generation Market Synopsis

Australia Distributed Generation Market is seeing a significant growth due to the increasing demand for energy, government initiatives promoting renewable energy sources, and advancements in technology. Distributed generation refers to small-scale power generation systems that are connected to the distribution network at a specific location, rather than centralized power plants. This allows for a more efficient and flexible energy system, reducing dependency on traditional power grids. The market is expected to continue growing in the coming years, with a shift towards renewable energy sources and the adoption of smart grid technologies.

According to 6Wresearch, the Australia Distributed Generation Market size is projected to grow at the CAGR of 5.1% during the forecast period of 2025-2031. One of the major drivers of the distributed generation market in Australia is the rising demand for energy. With a growing population and increasing urbanization, the country's energy consumption has been steadily increasing. This has led to a strain on the traditional centralized power grid, making distributed generation an attractive alternative. Moreover, there has been a strong push from the government towards promoting renewable energy sources in order to reduce carbon emissions and mitigate climate change. This has created a favorable environment for the growth of distributed generation, as it allows for cleaner and greener energy production. Despite the various benefits, there are still some challenges that hinder the widespread adoption of distributed generation in Australia. One of the major challenges is the high upfront costs associated with installing and maintaining these systems. In addition, there may be technical barriers and regulatory obstacles that need to be addressed in order to integrate distributed generation into the existing grid infrastructure. The Distributed generation market in Australia presents numerous opportunities for players in the industry. With advancements in technology, there is a potential for cost reduction and increased efficiency of these systems. This can make them more financially viable for both consumers and businesses. Additionally, as the demand for energy continues to rise, there is a growing need for decentralized and reliable sources of power, creating ample opportunities for distributed generation providers.

Government policies and schemes introduced in the Australia Distributed Generation Market

Australian government policies are crucial in shaping the future of the distributed generation market. Initiatives such as the Renewable Energy Target (RET) and various state-based schemes encourage the adoption of renewable technologies and aim to reduce greenhouse gas emissions. These policies have been instrumental in providing financial incentives for both individuals and businesses to invest in renewable energy sources. Additionally, the government has implemented feed-in tariffs, which ensure that energy producers are compensated for the electricity they generate and contribute to the grid.

Leading players in the Australia Distributed Generation Market

The Australia Distributed Generation Industry boasts several key players that are driving innovation and growth. Notable companies include AGL Energy, which has significant investments in solar and wind power; Origin Energy, another major provider with a diverse energy portfolio including solar, wind, and battery storage; and SIMEC ZEN Energy, which focuses on delivering renewable power solutions for commercial and industrial clients. Together, these entities are not only transforming the renewable energy landscape in Australia but are also setting standards for sustainable practices globally.

Future Insight of the Australia Distributed Generation Market

The future of the distributed generation market in Australia looks promising, with several initiatives being taken to overcome these challenges. The government has implemented various incentives and policies to encourage investment in renewable energy, which bodes well for the growth of distributed generation. In addition, advancements in technology have made distributed generation systems more efficient and cost-effective, making them a viable option for energy consumers. This, coupled with the increasing demand for clean and sustainable energy, presents a strong case for the continued growth of distributed generation in Australia. Furthermore, with the rise of smart grid technology, it is becoming easier to integrate distributed generation into the existing power grid. This will help to address some of the technical barriers and regulatory issues that have hindered Australia Distributed Generation Market Growth.

Market analysis by Technology

The solar PV segment is expected to experience significant growth in the Australia distributed generation market. This is attributed to the increasing adoption of renewable energy sources and government initiatives promoting their use. Solar PV systems are cost-effective, have low maintenance requirements, and can be easily installed in both residential and commercial buildings.

Market analysis By End -User

According to Ravi Bhandari, Research Head, 6Wresearch, the residential segment is expected to grow due to increasing demand for renewable energy sources and government initiatives promoting the adoption of distributed generation systems in homes. With rising electricity prices and a growing awareness of environmental concerns, more and more households are turning towards solar PV panels and other distributed energy technologies to reduce their reliance on traditional grid power. Additionally, advancements in technology have made these systems more affordable and efficient, making them an attractive option for homeowners.

Key attractiveness of the report

  • 10 Years Market Numbers.
  • Historical Data Starting from 2021 to 2024.
  • Base Year: 2024.
  • Forecast Data until 2031.
  • Key Performance Indicators Impacting the Market.
  • Major Upcoming Developments and Projects.

Key Highlights of the Report:

  • Australia Distributed Generation Market Outlook
  • Market Size of Australia Distributed Generation Market, 2024
  • Forecast of Australia Distributed Generation Market, 2031
  • Historical Data and Forecast of Australia Distributed Generation Revenues & Volume for the Period 2021-2031
  • Australia Distributed Generation Market Trend Evolution
  • Australia Distributed Generation Market Drivers and Challenges
  • Australia Distributed Generation Price Trends
  • Australia Distributed Generation Porter's Five Forces
  • Australia Distributed Generation Industry Life Cycle
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By Technology for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By Solar PV for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By Wind for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By Reciprocating Engines for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By Microturbines for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By Fuel Cells for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By Gas Turbines for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By Application for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By On-Grid for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By Off-Grid for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By End-User for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By Industrial for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By Commercial for the Period 2021-2031
  • Historical Data and Forecast of Australia Distributed Generation Market Revenues & Volume By Residential for the Period 2021-2031
  • Australia Distributed Generation Import Export Trade Statistics
  • Market Opportunity Assessment By Technology
  • Market Opportunity Assessment By Application
  • Market Opportunity Assessment By End-User
  • Australia Distributed Generation Top Companies Market Share
  • Australia Distributed Generation Competitive Benchmarking By Technical and Operational Parameters
  • Australia Distributed Generation Company Profiles
  • Australia Distributed Generation Key Strategic Recommendations

Market Covered

The report offers a comprehensive study of the subsequent market segments:

By Technology

  • Solar PV
  • Wind
  • Reciprocating Engines
  • Microturbines
  • Fuel Cells
  • Gas Turbines

By Application

  • On-Grid
  • Off-Grid

By End-User

  • Industrial
  • Commercial
  • Residential

Australia Distributed Generation Market (2025-2031): FAQs

Distributed Generation refers to the generation of electricity by small-scale technologies located close to where the electricity is used, thereby reducing the distance and losses associated with electricity transmission and distribution.
The Solar PV segment is leading due to its cost-effectiveness, low maintenance, and ease of installation. Additionally, government incentives and decreasing costs of PV technology contribute to its growth in the market.
Distributed Generation can reduce energy losses in transmission, provide backup power during outages, reduce dependency on central power plants, and help in reducing greenhouse gas emissions by integrating renewable sources.
The government supports Distributed Generation through various initiatives such as financial incentives, subsidies for renewable energies, and schemes that encourage the deployment of technologies like solar PV and wind turbines.
6Wresearch actively monitors the Australia Distributed Generation Market and publishes its comprehensive annual report, highlighting emerging trends, growth drivers, revenue analysis, and forecast outlook. Our insights help businesses to make data-backed strategic decisions with ongoing market dynamics. Our analysts track relevent industries related to the Australia Distributed Generation Market, allowing our clients with actionable intelligence and reliable forecasts tailored to emerging regional needs.
Yes, we provide customisation as per your requirements. To learn more, feel free to contact us on sales@6wresearch.com
1 Executive Summary
2 Introduction
2.1 Key Highlights of the Report
2.2 Report Description
2.3 Market Scope & Segmentation
2.4 Research Methodology
2.5 Assumptions
3 Australia Distributed Generation Market Overview
3.1 Australia Country Macro Economic Indicators
3.2 Australia Distributed Generation Market Revenues & Volume, 2021 & 2031F
3.3 Australia Distributed Generation Market - Industry Life Cycle
3.4 Australia Distributed Generation Market - Porter's Five Forces
3.5 Australia Distributed Generation Market Revenues & Volume Share, By Technology, 2021 & 2031F
3.6 Australia Distributed Generation Market Revenues & Volume Share, By Application, 2021 & 2031F
3.7 Australia Distributed Generation Market Revenues & Volume Share, By End-User, 2021 & 2031F
4 Australia Distributed Generation Market Dynamics
4.1 Impact Analysis
4.2 Market Drivers
4.2.1 Increasing focus on renewable energy sources in Australia's energy mix
4.2.2 Government incentives and policies promoting distributed generation
4.2.3 Growing awareness and adoption of energy efficiency measures
4.3 Market Restraints
4.3.1 High initial investment costs for distributed generation systems
4.3.2 Challenges related to grid integration and regulatory barriers
4.3.3 Limited access to financing options for distributed generation projects
5 Australia Distributed Generation Market Trends
6 Australia Distributed Generation Market, By Types
6.1 Australia Distributed Generation Market, By Technology
6.1.1 Overview and Analysis
6.1.2 Australia Distributed Generation Market Revenues & Volume, By Technology, 2021-2031F
6.1.3 Australia Distributed Generation Market Revenues & Volume, By Solar PV, 2021-2031F
6.1.4 Australia Distributed Generation Market Revenues & Volume, By Wind, 2021-2031F
6.1.5 Australia Distributed Generation Market Revenues & Volume, By Reciprocating Engines, 2021-2031F
6.1.6 Australia Distributed Generation Market Revenues & Volume, By Microturbines, 2021-2031F
6.1.7 Australia Distributed Generation Market Revenues & Volume, By Fuel Cells, 2021-2031F
6.1.8 Australia Distributed Generation Market Revenues & Volume, By Gas Turbines, 2021-2031F
6.2 Australia Distributed Generation Market, By Application
6.2.1 Overview and Analysis
6.2.2 Australia Distributed Generation Market Revenues & Volume, By On-Grid, 2021-2031F
6.2.3 Australia Distributed Generation Market Revenues & Volume, By Off-Grid, 2021-2031F
6.3 Australia Distributed Generation Market, By End-User
6.3.1 Overview and Analysis
6.3.2 Australia Distributed Generation Market Revenues & Volume, By Industrial, 2021-2031F
6.3.3 Australia Distributed Generation Market Revenues & Volume, By Commercial, 2021-2031F
6.3.4 Australia Distributed Generation Market Revenues & Volume, By Residential, 2021-2031F
7 Australia Distributed Generation Market Import-Export Trade Statistics
7.1 Australia Distributed Generation Market Export to Major Countries
7.2 Australia Distributed Generation Market Imports from Major Countries
8 Australia Distributed Generation Market Key Performance Indicators
8.1 Percentage increase in installed capacity of distributed generation systems
8.2 Number of new distributed generation projects approved or initiated
8.3 Growth in the number of households or businesses adopting distributed generation technologies
9 Australia Distributed Generation Market - Opportunity Assessment
9.1 Australia Distributed Generation Market Opportunity Assessment, By Technology, 2021 & 2031F
9.2 Australia Distributed Generation Market Opportunity Assessment, By Application, 2021 & 2031F
9.3 Australia Distributed Generation Market Opportunity Assessment, By End-User, 2021 & 2031F
10 Australia Distributed Generation Market - Competitive Landscape
10.1 Australia Distributed Generation Market Revenue Share, By Companies, 2024
10.2 Australia Distributed Generation Market Competitive Benchmarking, By Operating and Technical Parameters
11 Company Profiles
12 Recommendations
13 Disclaimer
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