Australia is already standing at a pivotal crossroads, where clean, renewable energy sources are reshaping the sunburnt country’s energy future.
For decades, the entire nation was powered by coal, natural gas, and other fossil fuels. Although its vast resources fuelled economic growth, they also contributed to environmental degradation.
However, in a dramatic turn, Australia is embracing a new era of renewable energy. The country is already ripping nature’s benefits to power them with reliable power sources.
The gleaming Solar panels on rooftops, wind turbines spinning across the plains, and the nation’s vast coastline tapping into the power of waves have been common sights for the country’s residents.
With the world facing the urgent challenge of climate change, these bold strides also reflect the nation’s commitment to reducing carbon emissions and embracing sustainable energy solutions.
But how much of Australia’s Energy is Renewable in 2025?
Why is Australia slow to move from coal to solar or other renewable energy sources?
Let’s explore Australia’s renewable energy sector and find out the answers!
In this blog post:
- Australia's Green Power | What Powers your Aussie Homes?
- A Snapshot of Australia’s Renewable Energy Growth: Past Trends and 2025 Outlook
- Setting Ambitious Targets| Australia’s Road to 82% Renewable Energy by 2030
- Fueling the Future: Australia’s Rapid Renewable Energy Progress
- Government Policy & Investment: The Main Backbone of Renewable Expansion
- Unlocking the Full Potential of Renewables: Invest in Energy Storage
- What are the Challenges in Australia’s Renewable Energy Transition?
- What’s Next in Australia’s Renewable Energy Horizon?
Australia's Green Power | What Powers your Aussie Homes?
Have you ever wondered from where most of our energy is derived?
Well, the answer could be a mix of sources, from fossil fuels to renewable energy
However, as the world moves toward sustainability, clean, green power is increasingly lighting up our homes.
People are embracing solar, wind, hydro, and other renewable sources instead of coal, oil, and natural gas. These abundant natural sources currently dominate the energy market, helping to reduce our carbon footprint and create a more sustainable future.
So, next time you flick that switch or charge your phone, remember that the power running through your Aussie home could be green. That’s a powerful step toward a cleaner tomorrow.
The change is just beginning, and here is how!
The Solar Surge: Rooftop Panels Illuminating Australian Homes
Australia’s embrace of solar energy is evident now, with the nation experiencing a rapid increase in rooftop solar installations.
Previously in mid-2022, over 600,000 small-scale solar systems were operational in Victoria alone, generating about 8.5% of the state’s electricity.
The country has one of the highest rates of solar panel installations per capita, and solar energy is becoming more accessible to households and businesses alike.
By 2025, solar energy is expected to account for about 20% of Australia’s total electricity generation. However, the decreasing cost of solar panel technology and government incentives have fueled this growth, keeping people more interested in generating clean energy.
The Wind Energy Potential: Largest Wind Farm in Australia
Besides solar, wind energy is also expected to be a major player in Australia’s 100% renewable energy transition, contributing around 15% to 20% of electricity in 2025.
Due to its vast stretches of land with high wind potential, particularly along its southern coast, the country is increasingly investing in large-scale wind farms, both onshore and offshore.
One such project is the Golden Plains Wind Farm, located 100 km west of Melbourne. It started electricity generation in late 2024 and will be the largest wind farm in the southern hemisphere.
They feature 215 turbines, and after completion, they are expected to provide electricity to approximately 750,000 homes.
Hydropower's Role: Tapping into Australia's Water Resources
Even though hydropower constitutes a smaller fraction of Australia’s renewable energy mix, it remains vital, along with solar and wind power.
For instance, hydropower projects, such as the Snowy Mountains Scheme, have historically contributed to the grid, and ongoing initiatives aim to enhance capacity and efficiency. This ensures a balanced and resilient energy system.
Unlike solar or wind, its growth is limited due to the country’s geographical constraints. Most of Australia’s hydropower generation comes from the Snowy Mountains and other large-scale reservoirs.
However, this sector still needs improvement, particularly in enhancing storage and increasing the efficiency of existing hydro plants.
A Snapshot of Australia’s Renewable Energy Growth: Past Trends and 2025 Outlook
| Years | Total Renewable Energy Share | Solar Energy Share | Wind Energy Share | Hydropower Share |
|---|---|---|---|---|
| 2010 | 8% | 1% | 4% | 3% |
| 2015 | 15% | 4% | 6% | 5% |
| 2020 | 27% | 11% | 10% | 7% |
| 2025 | 40 to 50% | 20% | 15 to 20% | 7 to 10% |
So, the tabulated data says in 2010, Australia’s renewable energy sector was still in its early stages, with wind and solar energy just beginning to gain traction.
By 2015, the sector experienced rapid growth, driven largely by increased investments in solar energy. By 2020, there was significant expansion, particularly in solar and wind, with solar contributing about 11% of the country’s electricity.
Looking ahead to 2025, projections suggest that renewable power will account for up to 50% of Australia’s total energy generation, with solar and wind playing a dominant role.
Setting Ambitious Targets| Australia’s Road to 82% Renewable Energy by 2030
Well, while Australia has often been criticized for its slow transition to clean energy, recent policy changes suggest that the country is making significant progress towards a more sustainable energy future.
So, what are the Australia’s Renewable Energy Policies and Targets?
In 2022, the Australian government set an ambitious target of generating 82% of the total national electricity from clean, renewable sources by 2030.
Even though no specific goal has been set for 2025, Australia is expected to meet its renewable energy target of 50% renewable electricity across its main grid.
According to AEMO data, Australia already has the technical capability to produce 75% of its electricity from renewable energy. However, achieving this goal will require significant regulatory reforms.
This goal aligns with Australia’s broader strategy to reduce our carbon footprint, aiming to reach net-zero emissions by 2050.
Several states, such as South Australia and Victoria, have also set their own renewable energy targets, which are driving the transition to clean energy even further at a rapid pace.
Fueling the Future: Australia’s Rapid Renewable Energy Progress
It’s obvious that Australia needs to substantially increase the share of renewable energy in the country’s energy mix to achieve a faster energy transition.
Statistics say renewable energy generation is projected to reach 84.96 billion kWh by 2025, and from 2025 to 2029, the market is expected to grow at a compound annual growth rate of 8.81%.
This growth is fueled by the ongoing shift towards decentralized energy systems, as consumers increasingly seek sustainable solutions and embrace new technological innovations.
So, let’s take a closer look at how Australians are leading this transition and what’s driving their growing adoption of renewable energy!
Government Policy & Investment: The Main Backbone of Renewable Expansion
Government policies and investments are crucial in Australia’s renewable energy transition.
For example, small-scale renewable energy schemes and the Renewable Energy Target (RET) scheme provide financial incentives and create a stable regulatory environment.
Also, agencies like ARENA provide funding for clean energy, supporting the growth of renewable energy.
Wanna know more?
Here are some notable examples:
1. Renewable Energy Target (RET)
he Renewable Energy Target (RET) is a core policy that focuses on reducing greenhouse gas emissions by encouraging the use of renewable energy.
Under this scheme, Australia had set a target of 33,000 GWh of renewable energy generation by 2020. The target has been extended and adjusted several times to support continued growth in this sector.
2. Clean Energy Finance Corporation (CEFC)
This is a government-backed investment fund designed to support the growth of clean energy projects in Australia.
The CEFC invests in various initiatives, from solar, wind, and hydropower to efficient battery storage and numerous renewable energy projects.
Since its establishment in 2012, billions of dollars have been spent on renewable energy ventures, helping scale up the industry.
3. Australian Renewable Energy Agency (ARENA)
From the very beginning, ARENA has been working with innovative projects that have potentially driven down costs and enhanced the performance of renewable technologies.
They support large-scale solar farms, electricity storage projects, and new clean energy technologies like green hydrogen.
Through this initiative, Australia is fostering rapid innovation in its energy sector.
4. National Hydrogen Strategy
The Australian Government’s National Hydrogen Strategy mainly focuses on positioning Australia as a global leader in hydrogen production.
The aim is to generate a huge amount of green hydrogen from renewable energy sources to power homes and businesses. Most importantly, by reducing the harmful use of fossil fuels in the transportation sector, they ensure the supply of clean fuel.
With investments in hydrogen hubs and infrastructure, Australia can also export the excess clean green hydrogen, contributing to the national economic sector.
5. State-based Renewable Energy Initiatives: Paving the Way towards Sustainability
- Victoria’s Renewable Energy Target: Victoria is a leader in renewable energy adoption and has set a target of generating 50% of its energy from renewable sources by 2030. The state is also investing in large-scale wind and solar projects to move to renewable sources fully and set the ambitious goal of sourcing at least 40% of energy from renewables by 2025.
- Queensland’s Renewable Energy Zones (REZs): Supported by residential and commercial solar panel installation incentives, Queensland is developing designated areas for renewable energy projects, particularly wind and solar. Their target is also to reach 50% renewable energy by 2030.
- South Australia’s Wind and Solar Investments: South Australia has become a leader in renewable energy generation, with significant investment in wind and solar power. The state aims to reach 100% renewable energy by 2030, and with continual growth, the target seems within reach for Australians.
6. The Snowy Hydro 2.0 Project, NSW Australia
The Snowy Hydro 2.0 is a pumped hydro energy storage project that helps to enhance the reliability and security of renewable energy in the National Electricity Market (NEM).
The project is designed to store excess renewable energy from solar and wind and release it when demand rises, helping to stabilize the grid.
These policies and investments not only reflect Australia’s commitment to transitioning to a renewable energy future but also ensure economic growth, energy security, grid stability, and environmental sustainability.
Unlocking the Full Potential of Renewables: Invest in Energy Storage
Obviously, the sun doesn’t always shine, and the wind doesn’t always blow. So, how can you generate power at night and keep your home appliances running without interruption?
This is where energy storage technologies, such as large-scale battery systems, come in. Battery storage systems allow us to smooth out any fluctuations in renewable energy sources.
In 2025, energy storage is expected to become a central part of the renewable energy landscape in Australia.
The rise of 10 kWh batteries, lithium-ion batteries, and solid-state batteries is expected to increase Australia’s renewable energy capacity significantly.
It is predicted that by 2025, energy storage could contribute to up to 5% to 10% of Australia’s total energy generation, helping to balance the grid and ensure energy security.
What are the Challenges in Australia’s Renewable Energy Transition?
Despite Australia’s rapid growth in renewable energy supply, several barriers remain that the country must address in the coming years to realize its full potential.
- Grid Reliability and Stability
With the increasing electricity demand, maintaining grid stability becomes a significant challenge.
To address frequent grid outages and ensure a consistent electricity supply developing an integrated grid that can handle renewable energy fluctuations will be critical and costly.
- Infrastructure Investment
While Australia is investing in renewable energy technologies, significant investment is still needed in infrastructure, such as transmission lines and energy storage systems.
- Political and Policy Uncertainty
Australia’s energy policies have been subject to change over the years!
Random political debates over the future of fossil fuels vs renewables and frequent policy changes can raise security issues among people who are investing their hard-earned money
- Rural and Remote Areas
Many of Australia’s renewable energy resources are located in rural and remote areas, which can make it challenging to develop the infrastructure needed to transmit energy to urban centers.
What’s Next in Australia’s Renewable Energy Horizon?
While there are challenges ahead, Australia is making steady progress towards a cleaner, greener, and more sustainable energy future.
The country’s commitment to renewable energy and its evolving policies are clear signals that the energy transition is well underway.
As Australia continues to harness its renewable energy potential, the country is not only moving towards a sustainable future but also creating new opportunities for innovation, jobs, and a cleaner environment.
With renewables, the best is yet to happen.
So, join this energy revolution with Solar Emporium! Our team of experts is here to provide you with all the necessary details and give you the best solution from our popular solar packages!
