It’s no secret that Australia is a land of wide open spaces, sun-soaked plains, and powerful coastal winds, making it a logical choice for renewable energy. As the conversation around energy grows and concerns about climate change rise, Australians are being forced to ask: How much of our electricity is coming from renewable sources? Is it really possible to run the whole country on solar and wind?
The short answer is: we’re getting there, but we’re not there yet. The complete picture is more nuanced.
Where Australia Stands on Renewable Energy
Australia’s renewable energy industry has boomed over the past 10 years. The most recent national figures show that between 32% and 35% of Australia’s electricity now comes from renewable sources—ranging from solar to wind and hydro, with solar leading due to the widespread adoption of rooftop systems.
Three million Australian homes now have solar panels. That’s more than a quarter of all households—one of the highest solar installation rates in the world. In regions like South Australia, rooftop solar—often even without subsidies—can generate up to 60% of electricity needs on sunny days.
Wind power has also expanded significantly, especially in southern states like Victoria and South Australia, where consistent wind conditions support large-scale turbine operations. Hydroelectricity, mainly from the Snowy Mountains Scheme, still plays a key role in providing baseline renewable power. However, its capacity for further expansion is more limited compared to solar and wind.
Is a Fully Renewable Australia Possible?
Technically speaking, yes. Resource-wise, in terms of solar and wind, Australia has more than enough to power itself many times over. According to energy analysts and academic studies, it would take covering only a small portion of the country with solar panels and wind turbines to generate a couple of terawatts of power, far more than the nation currently uses.
So, why don’t we already have 100% renewability?
The main issues aren’t about producing clean power—they’re about managing, storing, and transmitting it effectively. Solar and wind are intermittent sources: they only produce energy when the sun is shining or the wind is blowing. That’s why energy storage—especially large-scale batteries and pumped hydro—is critical for balancing supply and demand.
Another major challenge is the grid. Australia’s current energy grid was designed for centrally located fossil fuel sources, not for the distributed and variable nature of renewables. Upgrading the grid to handle two-way flows and intermittent sources requires significant investment and political coordination.
The Role of Solar Farms
While rooftop solar dominates in the residential sector, it’s at large-scale solar farms where some of the most significant impacts are being made. These farms can span hundreds of hectares and feed electricity directly into the national grid, powering both homes and industry.
Some standout examples:
- Darlington Point Solar Farm (NSW) – One of Australia’s largest, with a 333-megawatt capacity that can power around 110,000 homes.
- Bungala Solar Farm (SA) – With 220MW capacity, this project supports South Australia’s shift toward cleaner energy sources.
- Coleambally Solar Farm (NSW) – Known for its advanced technology and efficiency, generating around 189 megawatts.
These farms are typically located in non-urban or semi-rural areas with high solar irradiance and large open spaces—ideal for clean energy generation without disrupting populated regions. Read more in: “ Are There Any Solar Farms in Australia?”
The Wind Factor
Australia’s wind resources are promising. Regions such as western Victoria, Tasmania, and coastal South Australia experience consistent wind speeds capable of delivering near round-the-clock electricity.
As of 2024, wind energy contributes around 10%–12% of Australia’s electricity generation—a share that continues to grow, especially with offshore wind projects now proposed and under testing. Offshore wind, while more costly to develop, offers steadier output and complements solar’s daytime peaks.
Together, solar and wind can meet the majority of Australia’s energy demand across different times of day and seasons, especially when supported by battery storage.
The Challenge of Battery & Storage
The key to the renewable transition now lies in energy storage. Without it, surplus solar power generated during the day can’t be held for use at night. That’s where battery projects come in.
One of the first major breakthroughs was the Hornsdale Power Reserve in South Australia (funded by Tesla), which stabilized the state’s grid and spurred similar investments across the country.
More recently, projects like the Victorian Big Battery (300MW/450MWh) are helping shift renewable energy from a “when available” resource to a reliable 24/7 supply.
That said, battery storage remains expensive and currently lacks the capacity to back up the entire grid. This is why many experts also support pumped hydro, where excess energy pumps water uphill, which is then released to generate electricity during high demand.
Barriers Beyond Technology
The transition to renewables isn’t just technical—it’s also economic and political. Coal and gas plants still provide over 60% of Australia’s electricity. Many are outdated, but replacing them requires more than just infrastructure; it demands a just transition for workers, grid upgrades, regional planning, and firm long-term policies.
Historic inconsistencies in national and state policies have slowed progress. While states like South Australia and the ACT are nearing 100% renewables, others lag due to political differences and economic dependencies.
A second issue is investor confidence. Renewable projects take years to plan, and uncertainty around government incentives can delay or derail even the most promising developments.
What Does the Future Hold?
Australia has a unique opportunity to become a global leader in clean energy—but only with serious commitment from both the public and private sectors. The International Energy Agency stated that with proper investment in grid upgrades, storage, and policy reform, Australia could fully transform its electricity system within 15–20 years.
There’s also rising interest in green energy exports, especially hydrogen made using surplus solar and wind. Ambitious projects like Sun Cable, which aims to send solar energy to Singapore via an undersea cable, show how bold Australia’s renewable vision can be.
Final Thoughts
Australia hasn’t gone fully renewable—yet. But it could. The natural resources are here. The technology is rapidly improving. What’s left is the political will, infrastructure, and long-term coordination to make it happen.
With solar and wind already claiming a growing share of national electricity, and a wave of large-scale projects still to come online, Australia is clearly on a path toward a cleaner, more sustainable energy future.