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In Australia, more than a third of all homes have solar panels installed on their roof. Sometime in the next year, rooftop solar is expected to beat out coal to become the country’s largest source of electricity.

No country has been more successful at encouraging rooftop solar adoption than Australia.

There are many differences between America and Australia’s energy policy and markets. But if you want to understand why Australia has installed so much more rooftop solar than America, there’s only one difference that truly matters. That difference is cost.