Up to 75 per cent of metropolitan Sydney’s annual energy needs could be met if every rooftop had solar panels, according to a new report released today by independent think tank Committee for Sydney.

The ‘Sydney as a Renewable Energy Zone’ report makes six key recommendations, including mandating solar panels on new buildings, improving access to household and community batteries and increasing utilisation of industrial rooftops to share power with households that cannot access solar, so everyone can benefit from cheaper energy bills.

The report, developed in partnership with Endeavour Energy, Ausgrid, Arup and Arcadis, investigated future models for renewable energy generation, storage and distribution across metropolitan Sydney.

The report found that:

• The rollout of solar panels on every residential and industrial rooftop in metropolitan Sydney would generate 21GW of renewable energy, enough to power 75 per cent of the city’s annual energy needs.
• Sydney’s energy demand is almost half of the state’s total demand
• The city has untapped potential, and the distribution network has the capacity to accommodate more renewable energy.
• A Sydney REZ would create cheaper, cleaner and more reliable energy and provide greater access to affordable battery storage and solar options.
• New renewable energy models are needed to supply apartment residents, including renters and those without their own dedicated roof space. These models could include using industrial rooftops to share excess power with nearby homes.
• Industrial warehouse rooftops can create more than 500% of their energy needs
• Rapidly expanded battery storage capacity is needed to match growing rooftop solar use, soaking up excess daytime energy to power morning and evening peaks.
• Household, neighbourhood and district scale batteries can combine with virtual power plants (VPPs) to reduce costs to consumers and increase equity of access.
• A more stable renewable energy network will help Sydney meet NSW’s net zero targets of 50% emissions reduction by 2030 and 100% by 2050.

The report makes six key and 22 supporting recommendations including:

• Rooftop solar on all new residential and industrial buildings
• Greater access to community batteries for those without solar or battery assets
• A trial of renewable energy generation and storage models at different scales
• Mandatory minimum energy standards for rental properties, with incentives for landlords to install solar
• Incentives for oversized industrial rooftop solar
• Identifying a government body to investigate opportunities for metropolitan Sydney.

Sam Kernaghan, Director of Resilience Program, Committee for Sydney: “Almost 30% of Sydneysiders have installed rooftop solar and thanks to state and federal incentives that number is growing, however, that leaves millions of Sydneysiders who are not receiving the benefits of cheaper monthly bills.”

“Having solar installed on absolutely every rooftop to reach 75% of Sydney’s energy needs is a major challenge, and we may not get there in full, but this finding shows what’s possible. “There was a time when not every home had a television, just think about the benefits in the near future, if everyone could have access to affordable rooftop solar and storage.

“This scale of transition requires leadership and collaboration between multiple levels of government, regulatory bodies and industry, along with physical and digital assets working in tandem, including smart meters, virtual power plants and coordination platforms in an environment of rapidly evolving technologies. It’s an opportunity we can’t ignore.”

Marc England, CEO, Ausgrid: “There is huge rooftop solar potential sitting on commercial and industrial buildings in the existing network which is currently unused and which we could harness to give back to our customers and businesses.

“For Ausgrid, in Sydney alone, this could help provide a significant amount of the area’s energy needs. The challenge is there are currently barriers, and a lack of incentives for building owners, preventing our ability to take advantage of this opportunity.

“Rooftop solar consumed locally is the cheapest source of power available to customers so we should be testing different models to access this untapped potential.”

Guy Chalkley, CEO, Endeavour Energy: “As the electricity distribution service operator that powers 2.7 million people living and working in Greater Western Sydney, the Blue Mountains, Southern Highlands and the Illawarra, Endeavour Energy is proud to be at the forefront of the transition to renewables.

“We know our customers want access to green energy that’s affordable, accessible and inclusive, and we see huge potential to deliver a faster, lower-cost and future-ready REZ model for Greater Western Sydney that repurposes our existing grid infrastructure to support more local solar, energy storage and customer and community energy resources.

“We’re already working with EnergyCo to develop innovative solutions for an urban renewable zone in the Illawarra REZ and look forward to partnering with the NSW Government, councils, industry, customers and communities to unlock this untapped energy and create sustainable value for our customers.” 

Alan Brookes, CEO, Arcadis: “This transformative vision for Sydney as an urban renewable energy zone exemplifies the potential of collaboration and innovation in tackling our most pressing energy challenges within the city.

“Through a coordinated approach to utilising untapped rooftop solar and battery storage, we could create a cleaner, more resilient, and equitable energy future for all Sydneysiders. Arcadis is proud to have contributed to a project that not only redefines urban energy systems but also sets a benchmark for cities globally.”

Kate West, Chief Officer, Business & Markets, APAC, Arup: “Cities are at the forefront of delivering the energy transition, no less than in Sydney where domestic rooftop solar penetration is amongst the greatest in the world. As we electrify more of our systems, coordinating action will be critical to maximise both the potential and the cost savings for consumers.

“This coordination is greater than any one stakeholder group, and there is a call to collaborate more, and action for us to facilitate a coordinating body. More detailed work is needed on how to remove the potential barriers, and we are excited to be part of the future opportunities”.

The full report is here: ‘Sydney as a Renewable Energy Zone’