Australia has a few of the largest areas of excessive quantity, constant photo voltaic and wind power anyplace on this planet. It’s a pure benefit that many nations in our area and throughout Europe will envy as they ramp up their efforts to cut back carbon air pollution.
Australia has a tremendous alternative to utilise this abundance of dependable power not solely to remodel our personal power techniques but additionally that of our neighbours – if we get the coverage settings proper.
We’re, in reality, already seeing the advantages of renewable power flowing into our electrical energy grids. With all of the inflation pressures on our financial institution accounts it appears to be like like electrical energy pricing could also be one value that might be turning a nook – largely because of low cost photo voltaic and wind power.
Renewables are Bringing Down the Value of Producing Electrical energy
Right here at Greenpeace, whereas we predict there are some essential inquiries to ask about renewable power, it’s clear that photo voltaic and wind are actually the most affordable power choices accessible.
In distinction, coal, oil and fuel should not solely massive on air pollution, they’re additionally proving costlier as they wrestle to deal with the altering nature of our electrical energy techniques. Plus, fossil fuels are way more uncovered to worldwide value fluctuations – as all of us skilled when our electrical energy payments quickly rose following the Russian invasion of Ukraine.
Wouldn’t it’s nice if we as an alternative had power independence, sourced from an infinite provide of unpolluted power?
Photo voltaic and wind (backed by batteries) can do exactly that and the truth is that they’re already out-competing the outdated guard of fuel and coal just because they’re faster and cheaper to deploy. Which is nice information for electrical energy costs!
Though whether or not power retailers are passing on these financial savings to prospects is one other query. Quick reply: no, they’re not – however it’s a bit complicated.
Why are my electrical energy payments nonetheless excessive?
There are a variety of parts that make up the ultimate quantity we see on our payments. The graph beneath reveals the breakdown of power prices coated by our payments.
You will note roughly a 3rd (36.2% in 2025-26) of the associated fee goes to upkeep and construct out of the electrical energy grid. This consists of the transmission strains wanted to connect with new renewable power websites and to attach states to allow them to higher share their power sources. The ‘community’ prices have been growing however so produce other elements of our invoice, most notably the ‘wholesale’ value of manufacturing electrical energy.
Fortunately, the price of producing the electrical energy is now beginning to go down (because of renewables and batteries), however they’re coming off file highs because of the exorbitant value of fuel and the unreliability of coal energy stations which can be outdated and now not match for function.
Throughout excessive demand instances (eg, once we all get dwelling from work on a sizzling day and activate the air-con) spot costs can shortly leap. Add to that a few coal energy crops breaking down (as they more and more do), and costly fuel fired energy use spikes within the system. This will shortly cancel out any of the associated fee financial savings solar energy might have created throughout the day when costs can really go unfavorable.
The excellent news is that that is precisely the issue batteries can resolve. Batteries are nice at absorbing the excess provide of photo voltaic throughout the center of the day, which creates a extra environment friendly system, after which quickly pumping out that energy throughout the night peak at a less expensive fee than fuel.
How a lot have prices come down?
In accordance with the Australian power regulator (AEMO), wholesale electrical energy costs throughout the east coast have dropped by 44% when evaluating costs in quarter 4 of 2025 to the identical interval in 2024.
AEMO immediately attributes the change to the numerous progress in wind (up 29%), photo voltaic (up 15%), and batteries (3,796 MW of latest battery capability added). This inflow of low cost renewable power has seen a corresponding lower in using polluting fossil fuels to energy the grid. Coal fired energy dropped by 4.6% and fuel fired energy fell by a staggering 27%.
The identical pattern may be seen on this planet’s largest standalone grid in WA the place renewable power and storage equipped a file 52.4% of the grid’s power throughout the ultimate 3 months of 2025. That’s a formidable consequence given there is no such thing as a interstate connection to borrow power from and there’s no hydroelectric energy within the system.
Because of this, WA has seen a 13% drop in wholesale electrical energy costs because of a 5.8% discount in coal fired energy and a 16.4% discount in fuel fired energy.
Australian Households Lead the Approach on Photo voltaic and Batteries
Regardless of all of the makes an attempt to discredit clear power by Trump and different conservative politicians, Aussie households have lengthy identified the worth of renewable power. The truth is, Australia now holds the title for the best fee of photo voltaic power per capita on this planet.
That is now being adopted by the fast takeup of family batteries with the Clear Vitality Regulator being overwhelmed with curiosity within the Cheaper Dwelling Batteries Program. They now anticipate to obtain “round 175,000 legitimate battery functions comparable to a complete usable capability of three.9 GWh by the tip of 2025.”’
All these additional batteries storing the excess photo voltaic power throughout our neighbourhoods throughout the day just isn’t solely creating drastic invoice reductions for these households who’re putting in them, it’s serving to the entire grid. Which ultimately will assist everybody’s electrical energy payments.
If Australia as a complete follows the lead of suburban households by switching to low cost photo voltaic (plus wind) backed-up by batteries, it has an unparalleled alternative to construct its economic system on the again of limitless, native, clear power harnessed from the solar and wind.
Powering our Future Financial system
If there was ever one thing Australia has a pure benefit in, its solar and wind. However given the rising demand for electrical energy from information centres and the electrification of heavy business, we’re going to want extra than simply rooftop photo voltaic panels.
That’s the place Australia has the potential, greater than nearly some other nation, to turn out to be a renewable power powerhouse and punch above our weight within the combat towards local weather change. See for instance the distinctive alternative to enter into the manufacturing and export of inexperienced iron.
Whereas there may be nonetheless fairly a technique to go earlier than our electrical energy is absolutely sourced from photo voltaic and wind, we’re nicely on the way in which. The clear power cost is gathering tempo – and our communities, oceans, wildlife and financial institution balances would be the higher for it.
