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What are Solar Farms and How Do They Work?

Solar farms, also known as photovoltaic power stations, solar power plants, and solar parks, are key players in our renewable energy landscape, capturing sunlight at a massive scale and converting it into usable power.

Here’s everything you need to know about solar farms in Australia.

Solar farms, simply put, are large collections of solar PV panels that convert sunlight into electricity. But how does this transformation from sunlight to electricity occur? The secret lies in the solar inverter.

A solar inverter is a key component within any solar setup, including a solar farm. It converts the direct current (DC) the panels produce into alternating current (AC), suitable for use in a home or business or fed into the power grid.

However, capturing sunlight efficiently isn’t just about the conversion process; the physical positioning of the solar panels also plays a crucial role.
Tracking systems that can alter the panels’ tilt and angle are used to maximise energy absorption from the sun. Also, centralised maintenance and repairs of solar panels in farms lead to increased efficiency, reducing the time and resources needed for upkeep.

The Scale of Solar Power Stations in Australia

In Australia, we demonstrate a commendable commitment to solar energy. As of 31 Dec 2023, there are over 3.69 million solar PV installations in Australia, contributing to a combined capacity of over 34.2 gigawatts of renewable energy1.

Large-scale solar has become a significant part of this mix, with the Clean Energy Council reporting that 42 of the 68 large-scale renewable energy projects being constructed or committed to at the end of 2021 are solar farms.

Infographic highlighting solar energy statistics in Australia. On the left, a red map of Australia displays '3.69+ million solar PV installations.' In the center, a circular chart shows '34.2+ GW of renewable energy.' On the right, a box titled 'Large-Scale Solar Projects' lists '42 Solar Farms' and '68 Total Large-Scale Renewable Projects,' with a note referencing the Clean Energy Council Report (end of 2021).

As of April 2024, the largest solar farms in Australia, based on megawatt (MW) capacity are:

Infographic listing the largest operational solar farms in Australian states and territories with their capacities. New South Wales (NSW): Limondale Solar Farm at 345MW. Victoria (VIC): Kiamal Solar Farm Stage 1 at 350MW, with Stage 2 planned for 150MW. Queensland (QLD): Western Downs Green Power Hub at 400MW, the largest in Australia. South Australia (SA): Bungala Solar Farm at 275MW. Western Australia (WA): Merredin Solar Farm at 132MW. Tasmania (TAS): solar farms under 50MW. Northern Territory and Australian Capital Territory (NT & ACT): smaller-scale solar farms, all under 50MW.

Did you know? Due to large areas of fertile land being used for solar farms in Australia, this has led to the rise of ‘agrisolar’ where agricultural activities are integrated with the solar array. A great example of this can be seen with the Numurkah Solar Farm in rural North Victoria, which combines sheep farming with the day-to-day operation of a solar farm.

The Scale of Solar Power Stations in Australia

Solar resource map of Australia titled 'Photovoltaic Power Potential.' The map uses color gradients from yellow to dark red to indicate solar PV output potential across regions. Northern and central Australia, including areas around Alice Springs, show the highest potential in dark red, while coastal regions like Sydney, Melbourne, and Brisbane display lower potential in yellow. Key cities such as Perth, Adelaide, Darwin, and Cairns are marked. A legend at the bottom shows daily totals ranging from 2.6 to 5.4 kWh/kWp and yearly totals from 949 to 1972 kWh/kWp, based on long-term averages from 2007–2018.

Image credit: © 2020 The World Bank, Source: Global Solar Atlas 2.0, Solar resource data: Solargis.

Understanding solar irradiance is key to fully harnessing the sun’s power for solar farming in Australia. Solar irradiance measures the sun’s power over a specific area and is a critical factor in the design and location of solar farms.

Due to the massive size of Australia, solar irradiance levels vary significantly across states and territories, influencing where solar farms are most effectively placed. For instance, regions like Queensland and Western Australia, which enjoy high levels of solar irradiance due to their proximity to the equator and generally clear skies, are prime locations for solar farms. This is evident in large-scale facilities like the previously mentioned Western Downs Green Power Hub in Queensland, now the largest solar farm in Australia with its whopping 400MW capacity.

On the other hand, Tasmania, with its lower irradiance levels and cloudier conditions, does not have any large-scale solar installations exceeding 50MW. However, these installations are still strategically designed to maximise their solar intake, considering factors such as panel orientation and local weather patterns.

This solar resource map from Solargis (which collects and shares solar irradiance data) shows where the “hot spots” are for solar power generation in Australia.

From Farm to Grid: How Solar Farms Power Australia

Like any solar installation, solar farms generate electricity by converting captured sunlight into direct current (DC) power.

Once this DC electricity is generated, it cannot be used directly in homes or fed into the grid. It needs to be converted into alternating current (AC), which is where the solar inverter comes into play. The inverter is a pivotal device in the solar farm, changing the DC into AC, making the electricity compatible with the grid and suitable for everyday use in businesses and homes nationwide.

Ground-mounted solar panel array installed on a grassy field under a partly cloudy sky. The panels are arranged in long rows on metal frames, tilted to capture maximum sunlight. In the foreground, a PV combiner box labeled 'KUGA Electrical' is visible, indicating electrical integration for the solar system. The scene suggests a large-scale renewable energy installation in an open outdoor setting.

After conversion, the AC electricity travels from the inverter to a transformer within the solar farm. The transformer then raises the voltage to match the high levels required for efficient long-distance travel through power lines. This high-voltage electricity is then dispatched to the grid, where it is distributed through a network of substations and transformers, gradually decreasing the voltage to safe, usable levels for the end consumer.

How Solar Farms Contribute to Australia’s Renewable Energy Targets

In 2021, the Australian Government committed to a target of net-zero emissions by 2050. While there is debate about the feasibility of this target and the Government’s sincerity in achieving it, solar farms are unquestionably a big part of this equation no matter what.

Colloquially known as the sunburnt country, Australia has a massive opportunity to become a global leader in clean energy generation via solar farms, and this is noted in The Clean Energy Council’s 2022 Report. As noted previously, our high levels of solar irradiance and undeveloped land could make Australia the world’s solar breadbasket – but how do we get there?

Incentivisation is key. Business solar rebates like large-scale generation certificates and Victoria’s Solar VEECs provide a way to offset the investment in solar farms, hastening the return on investment.

There is also direct funding for projects. For example, The Australian Renewable Energy Agency (ARENA) has contributed grant funding towards large-scale solar projects across Australia, including close to $90 million awarded to projects in NSW, WA, and QLD3. This, according to ARENA, has helped make large-scale solar farms cost-competitive with wind farms.

How Much Do Solar Farms Cost?

According to the Clean Energy Regulator, the cost of large-scale projects decreased from $1.87 to $1.39 per watt between 2015 and the end of 2020. This highlights the increasing affordability of solar panels generally, with cost efficiency even more noticeable in large-scale solar projects. As predicted by the industry decades ago, solar technology has become cheaper and more accessible in Australia, and this trend will continue.

The reduction in material costs, combined with Government incentivisation, has made renewable energy generation with solar farms more affordable than ever.

Sources:

  1. Pv-map
  2. Assets Cleanenergycouncil
  3. Arena

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