IEEFA Report Highlights Rooftop Solar as Key Driver of Distributed Energy Growth Across Australia, India and Bangladesh

The Institute for Energy Economics and Financial Analysis (IEEFA) has published a briefing note examining the role of distributed energy resources (DER) in supporting affordable and clean energy transitions across Australia, India and Bangladesh. The report finds that rooftop solar has emerged as the primary driver of DER deployment in all three countries, while identifying policy and financing measures needed to accelerate future growth.

The briefing note, titled Role of Distributed Resources in Energy Transition: A Multi-Country Perspective, evaluates the deployment of distributed energy resources, including rooftop solar, solar irrigation pumps, biogas systems and battery storage technologies located close to where electricity is consumed.

According to the report, Australia continues to lead global DER adoption, with solar panels installed on approximately 40% of homes. Rooftop solar’s contribution to electricity generation in the National Electricity Market (NEM) increased from near zero to more than 13% between 2014 and 2025, while coal’s share declined from 75% to 52%. The report also notes that growing solar generation has contributed to lower wholesale electricity prices during midday hours in several regions.

In Bangladesh, the report states that distributed energy deployment is being driven primarily by industrial rooftop solar installations. While official data places installed rooftop solar capacity at 415.9 MW, IEEFA’s analysis estimates that capacity across 239 surveyed industrial facilities has already reached 667 MW and could approach 1 GW when smaller systems are included. The report also highlights the potential to expand solar-powered irrigation, estimating that replacing diesel-powered irrigation pumps could add around 4 GW of solar capacity while reducing annual diesel import costs.

For India, the report identifies significant opportunities for distributed renewable energy, particularly rooftop solar and solar-powered irrigation. Government estimates cited in the report indicate a technical rooftop solar potential of 637 GW, while more than 29 million irrigation pumps could be converted to solar-powered systems.

The report attributes India’s distributed energy growth to government initiatives such as the PM Surya Ghar Muft Bijli Yojana and PM-KUSUM scheme. It notes that distributed solar capacity increased from 1.8 GW in FY2018 to 31.5 GW in FY2026. However, despite this growth, distributed solar’s share of India’s total renewable energy capacity has remained relatively stable at around 21–22%, reflecting the faster expansion of utility-scale solar projects.

The analysis also compares regulatory and market conditions across the three countries, highlighting differences in approval timelines, smart meter deployment and access to financing. The report recommends expanding battery storage alongside rooftop solar, accelerating smart meter rollout, improving access to finance for households, farmers and small businesses, and promoting equitable access to distributed energy resources to support wider adoption.