Postcode and income distribution of solar
Postcode and income distribution of solar
April 2014
This Report has been prepared by Green Energy Trading for the REC Agents Association and
analyses the number of solar systems that have been installed under the Renewable Energy Target
(RET). The RET is the key policy measure that assists households with investing in solar. More than 2
million solar systems have been supported by the RET since it commenced in 2001. This amounts to
22 per cent of all dwellings across Australia having solar on their roofs.
This report takes a deeper look at the solar system installation figures produced by the Australian
Government’s Clean Energy Regulator (CER). System installations are analysed on a postcode basis
and cross-referenced with taxable income data provided by the Australian Tax Office and dwellings
data provided by the Australian Bureau of Statistics.
Key findings:





Rural and regional areas are over represented in solar installation statistics:
o Rural and regional areas have 42 per cent of all solar systems installed; this is despite
having only 32 per cent of the housing stock. This translates into rural and regional areas
having the highest uptake of solar systems per household at 29 per cent.
o Capital cities have 45 per cent of all solar systems installed, but 56 per cent of the
housing stock. This translates into capital cities having the lowest uptake of solar systems
per household at 18 per cent.
Installation of solar systems in the capital cities were typically characterised by postcodes in the
outer metropolitan mortgage belt;
There is an inverse relationship between average incomes and solar penetration levels (as
income levels increased, solar uptake declined);
The suburbs with the highest penetration of solar systems in each state tended to be either
regional or outer metropolitan; and
The five suburbs in Australia with the largest number of solar systems are:
o Bundaberg area, QLD
o Mandurah area, WA
o Hervey Bay area, QLD
o Werribee area, VIC
o Hoppers Crossing area, VIC
Sections covered by this report
This report analyses the following key attributes of solar installations:
1. Solar system penetration and income levels by postcode
2. Urban classification and solar system penetration
3. Top 10 suburbs in each state by total solar PV and solar hot water (SWH) system installations
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Page 1
Postcode and income distribution of solar
1. Solar system penetration and income levels by postcode
Our analysis has found an inverse correlation between the income level of a postcode and the level of
solar installations in that postcode, with solar uptake declining as income increased. A popular myth is
that rich people can afford solar and are being subsidised by people on lower incomes. Our analysis
(Figure 1) shows that this is not the case.
Factors driving the uptake of solar on a postcode are likely to be factors such as (i) level of home
ownership, (ii) the suitability of buildings (number of detached and semi-detached dwellings), (iii) the
relative importance of energy bills (families that spend a higher proportion of their incomes on energy)
1
and (iv) level of new home and renovation activity .
Figure 1 – Solar system penetration by postcode compared to income levels
Figure 1 plots each postcode for which there is available data. A postcode’s position on the
scatter chart is determined by the income percentile and solar system penetration associated
with the postcode. A third parameter is the relevant urban classification of each postcode
which is represented by the colour of the marker. A relatively rich capital city postcode with low
solar penetration will be green and at the bottom right of the graph. A relatively poor rural
postcode with high solar penetration will be red and at the top left. The methodology for this
analysis is explained below.
Solar penetration
To estimate solar system penetration for each Australian postcode (as used in Figure 1) we used total
systems installed at each postcode divided by total number of dwellings at each postcode. Statistics
on dwellings were sourced from the Australian Bureau of Statistics (ABS) 2011 census data.
The CER regularly releases installation figures for Small Generation Units (SGUs), Solar Water
Heaters (SWHs), and Air Source Heat Pumps (ASHPs). Installation figures are at postcode level and
to achieve penetration rates for each postcode we took the total number of installations (solar PV,
SWH and ASHP) and divided them by the total number of dwellings at each postcode. Using this
approach may in some cases act to overstate penetration levels. This is because we have treated
each installation (whether solar PV, SWH or ASHP) as a separate installation. In some cases a
dwelling may have both solar PV and solar hot water installed but there is no way of knowing which
dwellings have more than one solar installation.
1
A number of builders offer attractive solar packages and in many states building regulations support a low
greenhouse hot water systems to be installed
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Page 2
Postcode and income distribution of solar
Not all solar PV and SWH systems installed will create RECs, a small proportion may either (i) not
meet requirements or (ii) the owners may not bother creating certificates due to complexities in
2
creation .
Income measurements
The Australian Tax Office (ATO) releases a summary of tax returns for each financial year; this
publication (‘Taxation Statistics 2009–10’) includes average taxable income for each postcode in each
state.
Ordering or ranking average income provides an insight into how a particular postcode fits within the
broader average taxable incomes of all postcodes. For each average taxable income we calculated its
th
per centile ranking. The 100 per centile was the suburb with the highest average taxable income
which was $182,254 and the postcode with the lowest average taxable income ($36,153) had a
percentile rank of 0.02%..
2. Solar system penetration and urban classification
Urban classification
The ATO’s publication ‘Taxation Statistics 2009–10’ classifies the urban environment in which each
postcode lies. We have adopted, and slightly modified, the urban classification definition used by the
ATO. Each postcode, according to specific criteria, falls into one of the six categories outlined in Table
1.
Table 1 - Solar system penetration and income statistics by urban classification
ATO Classification
ATO criteria
1
Major urban (Capital city)
Postcodes in capital city urban centres
2
Other Urban (we have used Major
urban – Non-Capital City)
Postcodes in urban centres with population greater than 50,000 persons
(excluding capital cities)
3
Regional-high urbanisation (we
have used Regional – High)
Postcodes in urban centres with population between 10,000 and 50,000
persons
4
Regional-low urbanisation (we
have used Regional – Low)
Postcodes in urban centres with population between 3,000 and 10,000
persons
5
Rural
All other postcodes (includes urban centres with population less than 3,000
persons and all other sparsely settled areas)
6
Other
Postcodes listed by Australia Post as valid but not in use, special PO boxes
and other special mailing postcodes
We assigned system installation data to each of the six urban classifications used by the ATO. For
each postcode with available system installation data and associated urban classification we
aggregated system installation figures up to the level of urban classification.
2
Solar systems installed in new homes have more complexity in certificate creation
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Page 3
Postcode and income distribution of solar
Table 2 - Solar system penetration and income statistics by urban classification
Number
of
systems
% share
of total
systems
Number
of
dwellings
% share
of total
dwellings
Average
penetration
Average
Income (per
dwelling)
Major urban – Capital City
903,694
45%
5,086,911
56%
18%
$64,654
Rural
398,293
20%
1,271,293
14%
31%
$51,892
Regional – High
288,609
14%
1,047,759
11%
28%
$55,272
Major Urban – Non-Capital City
256,373
13%
1,116,447
12%
23%
$55,111
Regional – Low
164,516
8%
605,360
7%
27%
$52,770
2,703
0%
8,533
-
32%
$62,182
2,014,188
100%
9,136,303
100
22%
$56,267
Urban Classification
Other
Total Australia
Not all income and dwelling data was available for all postcodes for which we had CER solar system
installation data. We have excluded 18 per cent of postcodes for which the CER has data (this means
we excluded solar installations associated with these postcodes). These postcodes only had a small
number of solar system installed and accounted for only 0.4 per cent of total installations. A
reconciliation of postcodes analysed is included in Table 3 below.
Table 3 - Solar system and postcode reconciliation (data from CER as per 31 January 2014)
Published by the
CER
Included in this
analysis
Excluded
Per centage
excluded
3,009
2,473
536
17.8%
Total SGU installations
1,175,998
1,173,521
2,476
0.2%
Total SWH installations
671,231
840,667
4,614
0.7%
Total ASHP installations
174,051
-
-
2
2,021,280
2,014,188
7,092
Total postcodes
Manual adjustments
Total Solar installations
0.4%
3. Top 10 suburbs in each state and territory
We have identified the suburbs in each state with the highest level of solar system installations; we
have included this analysis as Attachment 1.
Key findings of this analysis were:



In almost all cases, the top 10 postcodes in each state had an average taxable income lower
than the state average
In the more populated states, the suburbs with the most solar installations tended to be
outside the capital cities.
Of the top 10 postcodes in each state (80 in total across 8 states and territories) 45 per cent
were in rural and regional areas; 45 per cent in capital cities; and the remaining 10 per cent in
other major urban centres.
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Page 4
Attachment 1 – top 10 solar PV and SWH postcodes by state and territory, and nationwide
NSW
Postcode
1
2
3
4
5
6
7
8
9
10
2480
2444
2540
2450
2430
2486
2560
2259
2478
2830
Locality/area
LISMORE area
PORT MACQUARIE area
NOWRA area
COFFS HARBOUR area
TAREE area
TWEED HEADS SOUTH area
CAMBLETOWN area
WYONG area
BALLINA area
DUBBO area
Total Top 10
Total other
Total NSW
Rooftop solar
systems
3,864
2,958
2,573
2,052
2,186
3,116
3,062
2,842
2,345
4,024
29,022
225,985
255,007
Solar Hot
Water
(incl. ASHP)
5,297
5,264
4,502
4,616
3,832
2,811
2,544
2,615
2,984
1,264
35,729
198,809
234,538
Total solar
installations
9,161
8,222
7,075
6,668
6,018
5,927
5,606
5,457
5,329
5,288
64,751
424,794
489,545
Total
dwellings
19,297
20,475
23,939
17,113
15,049
13,675
25,960
21,615
12,739
15,636
185,498
2,683,072
2,868,570
Dwellings with
Rooftop Solar +
Solar Water
47%
40%
30%
39%
40%
43%
22%
25%
42%
34%
35%
16%
17%
Postcode cf. state
average income
Urban classification
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Regional - High
Regional - High
Regional - Low
Regional - High
Regional - High
Regional - High
Major urban - Capital City
Major urban - Non-Capital City
Regional - High
Regional - High
Postcode cf. state
average income
Urban classification
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Rural
Regional - High
Major urban - Capital City
Major urban - Non-Capital City
Rural
Regional - High
VIC
Postcode
1
2
3
4
5
6
7
8
9
10
3030
3029
3977
3023
3754
3810
3064
3216
3551
3337
Locality/area
WERRIBEE area
HOPPERS CROSSING area
CRANBOURNE NORTH area
CAROLINE SPRINGS area
DOREEN area
PAKENHAM area
CRAIGIEBURN area
BELMONT area
EPSOM area
MELTON area
Total Top 10
Total other
Total VIC
Rooftop solar
systems
3,706
4,185
3,502
2,782
949
1,660
2,390
2,267
1,875
1,571
24,887
178,666
203,553
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Solar Hot
Water
(incl. ASHP)
7,464
6,737
5,465
3,771
5,592
4,406
3,658
2,042
2,037
2,171
43,343
132,438
175,781
Total solar
installations
11,170
10,922
8,967
6,553
6,541
6,066
6,048
4,309
3,912
3,742
68,230
311,104
379,334
Total
dwellings
29,011
24,212
24,572
18,757
6,545
13,740
16,802
21,927
8,952
12,207
176,725
2,102,111
2,278,836
Page 5
Dwellings with
Rooftop Solar +
Solar Water
39%
45%
36%
35%
100%
44%
36%
20%
44%
31%
39%
15%
17%
QLD
Postcode
1
2
3
4
5
6
7
8
9
10
4670
4655
4551
4350
4211
4305
4207
4680
4740
4570
Locality/area
BUNDABERG area
HERVEY BAY area
CALOUNDRA area
TOOWOOMBA area
NERANG area
IPSWICH area
BEENLEIGH area
GLADSTONE area
MCKAY area
GYMPIE area
Total Top 10
Total other
Total QLD
Rooftop solar
systems
8,015
6,525
6,574
5,928
5,039
5,268
4,703
4,002
4,172
4,622
54,848
310,195
365,043
Solar Hot
Water
(incl. ASHP)
5,022
4,844
3,473
3,961
2,974
2,660
3,086
3,466
3,061
2,534
35,081
185,958
221,039
Total solar
installations
13,037
11,369
10,047
9,889
8,013
7,928
7,789
7,468
7,233
7,156
89,929
496,153
586,082
Total
dwellings
34,466
25,946
23,420
43,573
21,714
23,290
18,247
20,750
31,697
17,461
260,564
1,570,456
1,831,020
Dwellings with
Rooftop Solar +
Solar Water
38%
44%
43%
23%
37%
34%
43%
36%
23%
41%
35%
32%
32%
Postcode cf. state
average income
Urban classification
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Above average income
Above average income
Below average income
Regional - High
Regional - High
Major urban - Non-Capital City
Major urban - Non-Capital City
Major urban - Non-Capital City
Major urban - Capital City
Major urban - Capital City
Regional - High
Major urban - Non-Capital City
Rural
Postcode cf. state
average income
Urban classification
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Regional - High
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Major urban - Non-Capital City
Regional - High
WA
Postcode
1
2
3
4
5
6
7
8
9
10
6210
6065
6155
6164
6112
6163
6027
6056
6169
6530
Locality/area
MANDURAH area
WANGARA area
CANNING VALE area
ATWELL area
ARMADALE area
BIBRA LAKE area
JOONDALUP area
MIDLAND area
WARNBRO area
GERALDTON area
Total Top 10
Total other
Total WA
Rooftop solar
systems
7,362
4,799
4,662
4,019
3,493
3,398
3,073
2,681
3,273
1,926
38,686
112,135
150,821
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Solar Hot
Water
(incl. ASHP)
4,819
3,182
2,281
2,912
2,911
2,403
1,952
2,316
1,721
2,736
27,233
101,091
128,324
Total solar
installations
12,181
7,981
6,943
6,931
6,404
5,801
5,025
4,997
4,994
4,662
65,919
213,226
279,145
Total
dwellings
31,106
18,981
16,276
17,403
16,099
20,228
16,549
15,575
14,552
14,203
180,972
781,059
962,031
Page 6
Dwellings with
Rooftop Solar +
Solar Water
39%
42%
43%
40%
40%
29%
30%
32%
34%
33%
36%
27%
29%
SA
Postcode
1
2
3
4
5
6
7
8
9
10
5159
5162
5211
5108
5114
5158
5095
5118
5253
5173
Locality/area
ABERFOYLE PARK area
MORPHETT VALE area
VICTOR HARBOUR area
SALSBURY area
CAREY GULLY area
HALLETT COVE area
MAWSON LAKES area
GAWLER area
MURRAY BRIDGE area
ALDINGA BEACH area
Total Top 10
Total other
Total SA
Rooftop solar
systems
3,928
3,968
2,881
3,347
2,979
3,179
1,733
2,063
2,042
1,613
27,733
135,085
162,818
Solar Hot
Water
(incl. ASHP)
709
593
1,271
655
940
469
1,755
971
631
1,004
8,998
40,441
49,439
Total solar
installations
4,637
4,561
4,152
4,002
3,919
3,648
3,488
3,034
2,673
2,617
36,731
175,526
212,257
Total
dwellings
12,856
14,111
8,917
15,397
11,014
9,177
7,559
7,381
7,983
5,719
100,114
628,272
728,386
Dwellings with
Rooftop Solar +
Solar Water
36%
32%
47%
26%
36%
40%
46%
41%
33%
46%
37%
28%
29%
Postcode cf. state
average income
Urban classification
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Major urban - Capital City
Major urban - Capital City
Regional - Low
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Regional - High
Regional - High
Regional - Low
Postcode cf. state
average income
Urban classification
Above average income
Below average income
Above average income
Below average income
Above average income
Above average income
Below average income
Below average income
Below average income
Above average income
Major urban - Non-Capital City
Regional - High
Major urban - Capital City
Regional - Low
Regional - High
Rural
Regional - Low
Major urban - Capital City
Rural
Major urban - Capital City
TAS
Postcode
1
2
3
4
5
6
7
8
9
10
7250
7310
7018
7315
7050
7054
7030
7011
7109
7000
Locality/area
LAUNCESTON area
DEVONPORT area
BELLERIVE area
ULVERSTONE area
KINGSTON area
SNUG area
BRIDGEWATER area
CLAREMONT area
HUONVILLE area
HOBART CBD area
Total Top 10
Total other
Total TAS
Rooftop solar
systems
1,701
784
761
505
468
501
596
526
437
395
6,674
12,745
19,419
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Solar Hot
Water
(incl. ASHP)
821
334
316
273
289
253
129
144
214
236
3,009
6,026
9,035
Total solar
installations
2,522
1,118
1,077
778
757
754
725
670
651
631
9,683
18,771
28,454
Total
dwellings
21,238
12,105
9,134
6,375
5,140
3,110
8,099
6,386
3,662
6,693
81,942
150,920
232,862
Page 7
Dwellings with
Rooftop Solar +
Solar Water
12%
9%
12%
12%
15%
24%
9%
10%
18%
9%
12%
12%
12%
NT
Postcode
1
2
3
4
5
6
7
8
9
10
0870
0810
0830
0812
0832
0820
0822
0836
0872
0835
Locality/area
ALICE SPRINGS area
ALAWA area
PALMERSTON area
MARRARA area
ROSEBERY area
WINNELLIE area
KAKADU area
HUMPTY DOO area
AHERRENGE area
HOWARD SPRINGS area
Total Top 10
Total other
Total NT
Rooftop solar
systems
818
410
285
245
187
93
104
182
74
102
2,500
267
2,767
Solar Hot
Water
(incl. ASHP)
2,390
2,026
1,869
1,652
1,189
878
784
565
423
392
12,168
1,609
13,777
Total solar
installations
3,208
2,436
2,154
1,897
1,376
971
888
747
497
494
14,668
1,876
16,544
Total
dwellings
11,083
12,168
6,792
7,114
3,553
8,714
6,541
2,658
5,350
2,308
66,281
16,454
82,735
Dwellings with
Rooftop Solar +
Solar Water
29%
20%
32%
27%
39%
11%
14%
28%
9%
21%
22%
11%
20%
Postcode cf. state
average income
Urban classification
Below average income
Below average income
Below average income
Below average income
Below average income
Above average income
Above average income
Above average income
Below average income
Above average income
Regional - High
Major urban - Capital City
Regional - High
Major urban - Capital City
Regional - High
Major urban - Capital City
Rural
Regional - Low
Rural
Regional - Low
Postcode cf. state
average income
Urban classification
Below average income
Below average income
Above average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Major urban - Capital City
Regional - High
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
Major urban - Capital City
ACT
Postcode
1
2
3
4
5
6
7
8
9
10
2615
2620
2602
2617
2905
2614
2913
2902
2914
2904
Locality/area
CHARNWOOD area
QUEANBEYAN area
DICKSON area
BELCONNEN area
ISABELLA PLAINS area
MAQUARIE area
NGUNNAWAL area
KAMBAH area
BONNER area
GOWRIE area
Total Top 10
Total other
Total ACT
Rooftop solar
systems
1,791
1,172
1,048
1,151
1,150
848
1,133
758
714
771
10,536
3,557
14,093
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Solar Hot
Water
(incl. ASHP)
1,963
1,034
917
583
553
557
167
435
383
290
6,882
1,852
8,734
Total solar
installations
3,754
2,206
1,965
1,734
1,703
1,405
1,300
1,193
1,097
1,061
17,418
5,409
22,827
Total
dwellings
17,115
15,816
12,897
11,672
10,714
8,199
9,508
6,143
4,859
4,919
101,842
50,021
151,863
Page 8
Dwellings with
Rooftop Solar +
Solar Water
22%
14%
15%
15%
16%
17%
14%
19%
23%
22%
17%
11%
15%
Australia
Postcode
1
2
3
4
5
6
7
8
9
10
4670
6210
4655
3030
3029
4551
4350
2480
3977
2444
Locality/area
Rooftop solar
systems
QLD - BUNDABERG area
8,015
WA - MANDURAH area
7,362
QLD - HERVEY BAY area
6,525
VIC - WERRIBEE area
3,706
VIC - HOPPERS CROSSING area
4,185
QLD - CALOUNDRA area
6,574
QLD - TOOWOOMBA area
5,928
NSW - LISMORE area
3,864
VIC - CRANBOURNE NORTH area
3,502
NSW - PORT MACQUARIE area
2,958
Total Top 10
52,619
Total other
1,120,902
Total Australia
1,173,521
Solar Hot
Water
(incl. ASHP)
5,022
4,819
4,844
7,464
6,737
3,473
3,961
5,297
5,465
5,264
52,346
788,321
840,667
Total solar
installations
13,037
12,181
11,369
11,170
10,922
10,047
9,889
9,161
8,967
8,222
104,965
1,909,223
2,014,188
Total
dwellings
Dwellings with
Rooftop Solar +
Solar Water
34,466
31,106
25,946
29,011
24,212
23,420
43,573
19,297
24,572
20,475
276,078
8,860,225
9,136,303
38%
39%
44%
39%
45%
43%
23%
47%
36%
40%
38%
22%
22%
State and territory totals
State
1
2
3
4
5
6
7
8
NSW
VIC
QLD
WA
SA
TAS
ACT
NT
Total Australia
Rooftop solar
systems
255,007
203,553
365,043
150,821
162,818
19,419
14,093
2,767
1,173,521
Green Energy Trading greenenergytrading.com.au
Solar Hot
Water
(incl. ASHP)
234,538
175,781
221,039
128,324
49,439
9,035
8,734
13,777
840,667
Total solar
installations
489,545
379,334
586,082
279,145
212,257
28,454
22,827
16,544
2,014,188
Total
dwellings
Dwellings with
Rooftop Solar +
Solar Water
2,868,570
2,278,836
1,831,020
962,031
728,386
232,862
151,863
82,735
9,136,303
Page 9
17%
17%
32%
29%
29%
12%
15%
20%
22%
Postcode cf. state
average income
Urban classification
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Below average income
Regional - High
Regional - High
Regional - High
Major urban - Capital City
Major urban - Capital City
Major urban - Non-Capital City
Major urban - Non-Capital City
Regional - High
Major urban - Capital City
Regional - High