The Australia renewable energy market reached an estimated USD 165.8 billion in 2024 and is projected to expand sharply to USD 687.9 billion by 2033, growing at a compound annual growth rate (CAGR) of 16.6 % during the period 2025–2033, according to the latest IMARC Group report.

This substantial growth reflects Australia’s ongoing commitment to reducing carbon emissions, diversifying its energy mix away from fossil fuels, and harnessing abundant natural resources such as sunlight and wind. From utility-scale solar farms and wind projects to bioenergy and hydro installations, renewable sources are rapidly transforming the country’s energy infrastructure.

The shift toward clean energy is also influenced by technological advancements in energy storage, smart grid systems, and hybrid renewable solutions that improve reliability and integration with existing grid infrastructure. These innovations are enabling higher penetration of variable renewables while supporting system stability and peak demand management.

Australia’s renewable energy market growth also aligns with global climate commitments and domestic policy initiatives aimed at establishing a low-carbon economy, expanding green industries, and attracting investment into clean energy projects across industrial, commercial, and residential segments.

Why the Market Is Growing So Rapidly

Strong Policy Support and National Targets

Government initiatives such as the Renewable Energy Target (RET), designed to achieve a 50 % share of renewables in the national electricity mix by 2030, are key catalysts for market growth. These policies provide certainty and incentives for investors and developers to pursue large-scale solar, wind, and other clean energy projects.

Declining Costs of Clean Technologies

The cost of renewable generation technologies such as solar photovoltaics and wind turbines has fallen dramatically in recent years, making them increasingly competitive with traditional energy sources. Coupled with declining battery storage costs, renewables are becoming more economically viable across diverse end-user segments.

Rising Corporate and Consumer Demand for Clean Energy

Corporations and households alike are prioritising cleaner energy sources to reduce emissions and manage long-term energy costs. Renewable installations are being driven by sustainability commitments, coupled with the desire to hedge against volatile fossil fuel prices.

Technological Innovation in Grid Integration

Smart grid technologies, advanced forecasting tools, and hybrid renewable systems enable better integration of intermittent solar and wind power. These solutions help balance supply and demand, reduce curtailment, and improve grid resilience, further encouraging renewable adoption.

Expansion of Storage Solutions

Energy storage systems — including battery facilities — are critical for addressing the variability of renewable sources. Growth in storage capacity supports higher renewable penetration by storing excess generation for use during peak periods, stabilising grid operations and improving reliability. (Broader industry data)

What the Opportunities Are

1. Utility-Scale Solar Development: Continued investment in large solar farms presents significant opportunities as Australia’s high solar irradiance makes it one of the most attractive markets globally for solar power generation.

2. Wind Power Expansion: Onshore and offshore wind projects offer robust growth potential, particularly in regions with favourable wind resources and supportive planning frameworks.

3. Energy Storage Solutions: With storage capacity expansion crucial to renewable integration, companies focused on battery systems, grid stabilisation technologies, and hybrid renewable-storage models are poised for rapid growth.

4. Green Hydrogen Production: Australia’s renewable capacity creates opportunities in green hydrogen, which can decarbonise hard-to-abate sectors and serve as an export commodity to energy-hungry markets in Asia.

5. Distributed Energy Resources (DERs): Rooftop solar, microgrids, and community energy projects offer decentralised clean power solutions, enhancing energy security and local resilience.

6. Smart Grid and Digitalisation: Integrating AI, IoT and advanced analytics into grid management unlocks efficiency gains, predictive maintenance, and real-time energy optimisation.

7. Corporate Power Purchase Agreements (PPAs): Long-term renewable energy contracts between generators and corporate buyers can provide stable revenue streams and reduce exposure to energy price volatility.

January 2025: Renewables broke records in Australia’s main electricity supply during the December 2024 quarter, with renewable sources accounting for 46 % of output — marking the first time coal’s contribution fell below 50 %. This surge was driven by increased solar and grid-scale generation, contributing to lower emissions and highlighting the accelerating transition to cleaner energy.

May 2025: Leading energy analysts reported that Australia is unlikely to meet its 82 % renewable electricity generation target by 2030, with projections pointing to around 58 % due to challenges like grid connection delays, policy uncertainty, and investment shortfalls. Despite this, significant growth in grid-scale and distributed solar and storage capacities continues, underscoring both opportunities and hurdles in the transition.

November 2025: Investment trends in Australia’s renewable sector dipped to a decade low for utility-scale solar and wind capacity approvals, casting temporary uncertainty over short-term deployment momentum. While rooftop solar continued to flourish, broader investment flows faced headwinds amid rising construction costs and infrastructure bottlenecks — a challenge industry stakeholders are aiming to address through policy refinement and targeted support measures.

Why Should You Know About the Australia Renewable Energy Market?

Understanding Australia’s renewable energy market is vital for investors, policymakers, energy providers, and corporate leaders alike. With nearly a four-fold increase in projected market value by 2033 and a rapidly evolving technology landscape, the sector represents one of the most dynamic arenas for clean energy investment and innovation.

The market’s growth signals a transformation in how energy is produced, consumed and managed — from decentralised rooftop solar to large-scale wind farms, from storage ecosystems to digital grid solutions. As the transition accelerates, stakeholders who grasp the nuances of policy drivers, competitive landscapes, and emerging business models will be best positioned to capitalise on Australia’s clean energy future.

Whether driven by climate commitments, cost efficiencies, or new economic opportunities, renewable energy in Australia is reshaping the energy ecosystem — and it’s a trend that businesses and governments cannot afford to overlook.