1 in 5 Commercial Systems Aren’t Compliant and the Risks Are Real
Australia’s commercial solar sector is growing fast—but so are the cracks in quality and compliance.
We dug into inspection data from the Clean Energy Regulator (CER), and the results are sobering: 1 in 5 systems are technically substandard, and a small but consistent share, around 1.5%, are considered unsafe or potentially unsafe.
That’s not just a technicality. Substandard systems quietly underperform. Unsafe ones put people at risk. Here’s what the data tells us.
1. Non-compliance is more common than you think
The CER’s 2022–23 inspections of small-scale systems (under 100 kW) revealed that 22% failed to meet technical standards.
These aren’t isolated cases. They are everyday installs—on schools, warehouses, office rooftops—where something has gone wrong:
- Panels not mounted to code
- DC isolators improperly installed
- Inverter cabling left exposed
- Array earthing skipped or misapplied
In short: issues that compromise system performance and lifespan, and in some cases, could void warranties or create hazards.
2. Safety risks haven’t gone away
About 1.5% of systems were rated unsafe or potentially unsafe—a figure that’s held steady over recent years.
The biggest culprit? DC isolators, especially when installed on rooftops and exposed to the elements. Water ingress, overheating, and electrical faults remain common.
It’s a small percentage, but in a market this large, it adds up quickly—and the reputational risk is real.
3. When regulators dig deeper, things get worse
Targeted inspections (those triggered by red flags, complaints, or known issues) paint a much harsher picture:
More than half—52%—of these systems were found to be substandard.
That tells us the underlying issues are systemic, not just statistical noise. Installers who cut corners do it often. And clients rarely know until something fails.
4. System performance is suffering quietly
Separate from safety and compliance, there’s another, less visible issue: underperformance due to lack of maintenance.
Recent industry analysis estimates over $1 billion in annual losses from commercial systems not delivering what they should—largely because they’re not being checked. No fault alerts or monitoring and no scheduled maintenance.
That’s wasted energy, contracts underdelivered, and portfolios that aren’t hitting targets.
The bottom line
Too many systems that aren’t being built or maintained to the standard commercial clients expect. Solar assets can seem trouble-free, but without routine O&M, small Too many systems aren’t being built or maintained to the standard commercial clients expect. While solar assets can seem trouble-free, small inefficiencies add up quickly without routine O&M. The only way to be sure you’re getting the most from your portfolio is to check.
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