Microsoft noted in their software development that by fixing the top 20% of reported bugs, 80% of the related errors and crashes in a given system were essentially eliminated. The company also discovered that - in a general sense - the hardest 20% of the code required to for a piece of software took 80% of the allocated time to write, while the easier 80% of the coding took only 20% of the time.
A similar pattern can be seen in economics, where the richest 20% of people on the planet own approximately 80% of global wealth. In the US in 2018, approximately 80% of the county’s Federal Income Taxes were paid by 20% of the population. Even in dieting, it’s commonly known that 80% of weight-loss comes from what you eat, and only 20% from exercise – a fact I conveniently ignore every time I’m ordering a pizza.
In fact, in almost every facet of business you can find some correlation to this rule - from the output and efficiency of your staff, to the effectiveness of your sales - it lingers as an unseen force in the background, tending not to stray from that ratio too far. Yet one area it can’t be found is the Australian solar construction industry, where the top 20% of companies have only a 30% market share.
Even so, the Solar Boom 2.0 is upon us, and it’s an industry that shows no signs of wavering through the fog of climate change denial and the political quagmire oozing out of Canberra. A few of us prematurely pondered that policy changes - such as the introduction of the terribly written first iteration of the NEG – might do enough damage to put the brakes on the whole machine, yet even in the face of adversity, the industry continued pushing new boundaries, so much so that according to the Solar Industry Year in Review report released this week by SunWiz, 2018 convincingly smashed previous records for Australian PV installations.
An interesting change which the market experienced in 2018 was the almost unanimous growth nationally. Historically, national growth of the solar sector has been supported predominantly by the growth of one or two individual states; in 2018 however, the majority of states experienced highly successful expansion, with 4 of the states registering higher than 60% increase for the industry, inclusive of the ACT which hit 111% growth for the year.
South Australia - the Australian Energy Market’s poster-child for renewable energy uptake, saw the state reaching a mammoth 43.4% of energy generation for 2018 coming from renewable energy sources, being Australia’s second largest installer of sub-100kW installations, contributing 400,000 new residential and small business solar systems to the network.
With over 10GW of PV installed in Australia in 2018, 2019 is definitely shaping up to be one interesting year.
About the Author
Patrick is the Marketing and Communications Manager at Yates Electrical Services. When he's not designing stuff and writing stories, he performs as an acoustic soloist and spends time with his beautiful little family.
Patrick also likes long walks on the beach, sewing, and photoshopping himself to look like an Avenger. He really wishes he was an Avenger.