In the early years of Australia’s renewable boom, bigger solar farms were seen as better — more megawatts, more generation, and bigger headlines. However, in 2026, that logic is quietly being rewritten.
A flagship project in central Queensland (QLD) that was once touted as Australia’s largest solar-battery hybrid has just cut its solar PV component in half. It’s not because solar isn’t viable, but the market simply isn’t willing to buy all the daytime electricity being generated, and the development needs a more realistic, approval-friendly design to get built.
The UK-based developer Elements Green has downsized the solar footprint of its Eurimbula project near Gladstone, halving its planned capacity and reducing its land disturbance — a move it says will ease environmental approval hurdles under the federal EPBC process and improve its ability to secure finance and offtake partners.
The Eurimbula example
To understand why big solar farms are getting smaller in 2026, a good place to start is with one of Australia’s most high-profile renewable projects: the Eurimbula Hybrid Facility near Gladstone in central QLD.
Originally led by Elements Green, the project had secured formal grid connection approval — a 5.3.4 technical clearance from the Australian Energy Market Operator (AEMO) and QLD’s Powerlink — which green-lit its design combining two 348 MW DC solar arrays with two 333 MW (~666 kWh) grid-forming battery systems. At the same time, this configuration made Eurimbula the most ambitious hybrid project of its kind in Australia.
But as the project has moved through a rigorous environmental approval process under the federal EPBC Act, Elements Green has opened to slash the planned solar PV component by roughly 50%, reducing both capacity and the land footprint needed for solar fields. This was a strategic decision.
According to the developer’s variation submission to the federal process, commercial discussions with industry counterparts highlight a “reduced appetite” for contracting large volumes of solar-based energy, meaning it has become harder to secure long-term offtake deals for utility-scale PV alone. By cutting the solar element and reducing land disturbance, the project aims to improve its chances of gaining environmental approval while aligning more realistically with market demand.
This pivot shows a broader market signal: large daytime solar generation isn’t automatically matched by available contracts or grid needs, and developers are adapting their designs accordingly — even on flagship projects with major grid milestones already achieved.
Why the solar downscale happened
The decision to shrink the solar component of the Eurimbula hybrid project wasn’t random. It reflects real market signals and practical development challenges that utility-scale solar is facing right now.
1. “Reduced appetite” from off-take partners
One of the most striking reasons the developer gave for cutting the solar PV capacity by around half was that industry partners and potential buyers showed less interest in signing long-term contracts for large amounts of solar-only energy. In its federal environmental application, Elements Green said that commercial discussions highlighted a reduced appetite for contracting solar-based energy, specifically in the volumes originally planned.
This means that, even with grid connection approval in hand, securing reliable revenue through power purchase agreements (PPAs) for big daytime solar output has become more challenging.
2. Reducing environmental impacts for approval
Another key driver is environmental regulation. By reducing the solar footprint from about 1,173 hectares to roughly 545 hectares, the project significantly lowers its potential impacts on threatened species and ecological communities.
The developer itself noted that shrinking the project helps address concerns about the “large size of the project,” which ca influence approval timelines and conditions. This suggests that regulatory realities are shaping the optimal design for major renewables projects today.
3. Lower capital requirements improve finance prospects
With a smaller PV field, the total capital required to build the project falls substantially. Elements Green also pointed out that the reduction in scale helps the project’s financial profile, making it easier to secure investment and move toward construction.
This combination of tougher contracting conditions, regulatory pressures, and financing pragmatism shows that bigger solar farms aren’t always better in the current energy landscape. Developers now need to balance size with market viability, regulatory constraints, and bankability. For some large utility projects, that balance means building smartly, not just bigger.
What this trend reveals about the market in 2026
This is not an isolated project tweak, but it indicates a broader change in how large-scale solar is being valued across the National Electricity Market (NEM). It’s not about whether solar works, but when it does, and whether the grid and the market can absorb more of it during the middle of the day.
For years, utility solar projects were designed around the idea of generating as much electricity as possible and securing long-term offtake agreements. That model is now under strain. Midday solar supply in QLD and other states is abundant, wholesale prices frequently collapse during daylight hours, and curtailment risk is increasing as more projects connect to already congested parts of the grid. In that environment, adding more panels does not automatically translate into more revenue.
This is where batteries start to carry more value than panels. Storage lets energy be shifted to when it is needed and when it can be earned. Solar generation alone can’t do that. The fact that Eurimbula retained its battery design while cutting its PV footprint indicates where the real commercial priority now sits in hybrid developments.
At the same time, environmental approval pressures are forcing developers to reconsider land use. Large solar fields need large tracts of land, and that land increasingly intersects with biodiversity concerns, threatened species habitats, and stricter scrutiny under the EPBC process. Reducing scale is becoming a practical way to move projects forward.
These factors show that this year, the success of a solar farm is measured by how well its design fits market demand, grid conditions, environmental constraints, and financing reality. That means, bigger is no longer the default goal — smarter is.
What this means for future solar farm proposals across Australia
What’s happening now is likely to influence how other large renewable projects are designed from the outset.
Developers are watching closely. Projects proposed around Gladstone and in other renewable hotspots are facing the same grid conditions, the same midday pricing pressures, and the same environmental approval hurdles.
Future proposals are likely to feature:
- Smaller solar footprints
- Arger or more capable battery systems
- Tighten land use plans to reduce approval friction
- Designs focused on grid value rather than generation volume
This also changes how investors and financiers view utility solar. Bankability is now changing from raw megawatt capacity and toward projects that can demonstrate reliable revenues through flexibility, storage, and realistic offtake pathways.
In practical terms, the era of announcing record-breaking solar farms for their size alone may be fading. The projects that progress will be the ones that prove they understand the grid they are connecting to, the land they are building on, and the market they are selling into.
The Eurimbula redesign shows that in 2026, success in utility solar is no longer about building the biggest project possible, but about designing one that fits market demand, grid limits, environmental approvals, and financing reality from the start.
Energy Matters has been in the solar industry since 2005 and has helped over 40,000 Australian households in their journey to energy independence.
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