Q&A: How much renewable energy does Australia generate, and how fast is the transition progressing? - Lethal Heating Editor BDA

Key Points Renewables generated ~40% of electricity in 2024 Record 7.5 GW of new clean energy capacity added Rooftop solar leads growth with 4M+ installations Government invested $12.7B in 2024 in renewables Australia aims for 82% renewables by 2030 Wind investment stalling—target at risk New support schemes aim to close the gap

Australia now generates about 40% of its electricity from renewable energy sources, up from just 7% in 2008.

This massive shift has been led by wind farms, hydro dams, and especially rooftop solar panels, which now crown more than 4 million Australian homes.

According to the Clean Energy Council, 2024 was a record-breaking year: 7.5 gigawatts (GW) of new capacity were added, including 4.3 GW of large-scale projects and 3.2 GW of rooftop solar.¹

But behind this remarkable growth is a high-stakes race against time and infrastructure bottlenecks.

Strong Progress But Is It Enough?

The Australian government has committed to reaching 82% renewable electricity by 2030.²

To hit that target, the country needs to install about 5 GW of clean energy capacity every year, every year until the end of the decade.

At the end of 2024, renewable energy contributed roughly 92,700 gigawatt hours (GWh) to the grid, about 40% of total electricity production.³

Most of that came from wind (13.4%), rooftop solar (11.2%), and hydroelectricity (7.5%).

The National Electricity Market (NEM) is already seeing major shifts. Wind and solar together reached a quarterly record of 46% share by late 2024.⁴

Investment Surges, Led by Public and Private Sectors

The clean energy sector in 2024 saw a major financial boost: $12.7 billion poured into the industry through rooftop solar, battery storage, and large-scale wind and solar farms.⁵

The Clean Energy Finance Corporation (CEFC), Australia’s government-backed green bank, invested $3.5 billion alone, double its previous year’s total.⁶

Transmission projects and grid upgrades received $2.8 billion of this to ease the path for new generation projects to plug in.

Warning Signs: Wind Power Stalls in 2025

Despite these gains, early 2025 brought troubling news: no new wind farms began construction in the first half of the year.⁷

Developers cite high turbine costs, global supply shortages, and transmission grid delays as reasons.

Without acceleration, analysts say Australia is on track to reach just 60–68% renewable electricity by 2030, not the full 82% goal.

To turn things around, the government has now expanded its Capacity Investment Scheme to cover up to 40 GW of new firmed renewable energy, providing financial certainty for investors.⁸

Solar Keeps Soaring, But Broader Mix Needed

Rooftop solar continues to be the star performer. Over 3.2 GW were added in 2024 alone, about 40% of all new capacity.

However, experts stress the importance of balancing solar with dispatchable sources like batteries and pumped hydro to maintain grid stability.

The next five years will be decisive. Will Australia sustain its current momentum or fall short as system constraints tighten?

For now, the sun still shines brightly on the renewable transition, but the winds of political will and economic coordination must also blow strong.

Footnotes

1. Clean Energy Australia Report 2025 – Clean Energy Council

2. Australia boosts underwriting scheme for renewables – Reuters

3. Australia hits record renewable generation – Energy Today

4. Open Electricity – Q1 2025 NEM analysis

5. Clean Energy Australia 2025 Report – Renewable Energy Magazine

6. CEFC record investment 2025 – Reuters

7. Turbine construction slump – The Australian

8. Government expands Capacity Investment Scheme – Reuters

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