Australia Renewable Energy Market (2025-2031) | Value, Size, Revenue, Industry, Analysis, Companies, Share, Trends, Forecast & Growth

Australia Renewable Energy Market Growth Rate

According to 6Wresearch internal database and industry insights, the Australia Renewable Energy Market is projected to grow at a compound annual growth rate (CAGR) of 8.1% during the forecast period (2025–2031).

Five-Years Growth Trajectory of the Australia Renewable Energy Market with Core Drivers

Below mentioned are the evaluation of year-wise growth rate along with key drivers: 

Topics Covered in the Australia Renewable Energy Market Report

Australia Renewable Energy Market report thoroughly covers the market by technology and end-user. The market report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high growth areas, and market drivers, which would help stakeholders devise and align their market strategies according to the current and future market dynamics.

Australia Renewable Energy Market Highlights

Australia Renewable Energy Market Synopsis

The Australia Renewable Energy Market is poised for substantial growth, driven by the nation’s strategic transition toward low-carbon energy systems and declining costs of renewable technologies. Strong government backing of renewable energy initiatives, coupled with increasing corporate ESG obligations, further continues the rapid growth of Australia renewable energy sector. Improvements in energy storage technology and enhancements of the grid are stabilizing and enhancing efficiency of energy supply. Additionally, increased consumer participation and investment policies favoring renewable energy are speeding up adoption and expanding Australia clean energy generation capacity.

Evaluation of Growth Drivers in the Australia Renewable Energy Market

Below mentioned some growth drivers and their impact on market dynamics:

The Australia Renewable Energy Market is expected to grow significantly, with a CAGR of 8.1% during 2025–2031. The Australia Renewable Energy Market Growth is supported by the country commitment to achieve net-zero emissions, increased solar and wind energy developments, and increased energy storage capabilities. Falling renewable technology costs, and written support from government incentive schemes are attracting significant domestic and foreign investment. These trends are ultimately positioning Australia as a global leader for sustainable energy innovation and significant scale renewable power generation in the next few years.

Evaluation of Restraints in the Australia Renewable Energy Market

Below mentioned are some major restraints and their influence on market dynamics:

Australia Renewable Energy Market Challenges

The Australia Renewable Energy Industry continues to experience difficulties despite extensive government support. The generation of energy from renewable sources can create grid instability because it is highly variable. Upfront infrastructure costs are high and there are limitations on transmission in very large geographies. Different energy policies and renewable differentiation across regions create delays on new projects and the use of imported inputs for solar panels and wind turbines increases cost volatility. However, to allay structural issues, remedial action is essential for ensuring consistent renewable energy penetration across Australia electricity sectors.

Australia Renewable Energy Market Trends

Some major trends contributing to the development of the Australia Renewable Energy Market growth are:

• Hybrid Renewable Systems: Rising number of projects that combine wind and solar energy together with storage for consistent energy delivery.
• Corporate Energy Transition: Increased participation from corporations finalizing long-term power purchase agreements as steps toward meeting sustainability pledges.
• Decentralized Energy Production: Rising installations of rooftop solar panels, and the development of microgrids and district energy systems, especially for commercial and residential customers.
• Battery Storage Expansion: Investment in advanced lithium-ion batteries, and large-scale grid batteries to facilitate renewable energy integration.
• Hydrogen Development Initiatives: Expansion of green hydrogen projects based on Australia vast renewable resources for domestic use and export.

Investment Opportunities in the Australia Renewable Energy Market

Here are some investment opportunities in the Industry Overview of Australia Renewable Energy Sector:

• Utility-Scale Solar and Wind Development: Investing in large-format renewable farms in response to increased demand for electricity.
• Energy Storage Solutions: Creating battery storage networks that are connected to the grid to balance renewable generation.
• Green Hydrogen Production: Setting up hubs for hydrogen production focused on export markets and decarbonizing emissions-intensive industries.
• Microgrids and Distributed Energy Systems: Developing renewable off-grid systems with small local-scale combinations of distributed generations.
• Smart Grid and Digital Energy Solutions: Investing in grid modernization of digital energy management and smart metering deals to improve energy management and efficiency.

Top 5 Leading Players in the Australia Renewable Energy Market

Here are some top companies contributing to Australia Renewable Energy Market Share:

1. AGL Energy Limited

One of Australialargest energy companies with diversified renewable assets in wind, solar, and hydro, focusing on achieving net-zero emissions through clean energy transition initiatives.

2. Origin Energy Limited

Major integrated energy company operating across power generation, retail, and renewable segments with investments in large-scale solar and battery projects.

3. Infigen Energy (Now Iberdrola Australia)

Operates multiple wind and solar farms across Australia, promoting grid-scale renewable energy integration and sustainability-focused power generation.

4. Tilt Renewables Pty Ltd.

Specializes in renewable energy development, owning and operating major wind and solar projects across Australia and New Zealand.

5. Neoen Australia Pty Ltd.

French-based renewable energy firm operating large solar, wind, and battery storage facilities, including the landmark Hornsdale Power Reserve project in South Australia.

Government Regulations Introduced in the Australia Renewable Energy Market

According to Australian government data, The Australian government actively supports renewable energy through initiatives like the Renewable Energy Target (RET), promoting a minimum share of renewables in national power generation. Programs such as the Clean Energy Finance Corporation (CEFC) and the Australian Renewable Energy Agency (ARENA) provide funding and grants for innovative green projects. Additionally, the Hydrogen Energy Supply Chain (HESC) project and National Energy Transformation Partnership (NETP) focus on clean energy infrastructure, enhancing renewable energy accessibility and regional energy resilience.

Future Insights of the Australia Renewable Energy Market

The Australia Renewable Energy Market is expected to witness accelerated growth during the forecast period, driven by government commitment to achieve net-zero emissions by 2050. Increasing renewable capacity, coupled with declining technology costs, will fuel expansion in both utility-scale and distributed generation projects. Investments in battery storage and green hydrogen infrastructure will further diversify the energy mix. Technological innovation, grid modernization, and growing private sector participation will strengthen Australia position as a global leader in renewable energy transformation.

Market Segmentation Analysis

The report offers a comprehensive study of the subsequent market segments and their leading categories.

Solar to Dominate the Market – By Technology

According to Ritika Kalra, Senior Research Analyst, 6Wresearch, the solar segment dominates the market owing to Australia abundant solar resources and cost competitiveness. The rapid adoption of rooftop and utility-scale solar projects across households and industrial sectors is driving major capacity additions. Continuous government incentives and the emergence of large-scale solar farms further enhance this segment’s leadership.

Utilities to Dominate the Market – By End-User

The utilities segment is the leading contributor to Australia renewable energy mix, accounting for a substantial share of total installations. Increased investments in grid-connected renewable projects, coupled with the expansion of storage capacity, are enabling utilities to deliver clean, reliable energy to consumers. This segment’s dominance is further reinforced by long-term power purchase agreements and public-private partnership projects.

Key attractiveness of the report

• 10 Years Market Numbers.
• Historical Data Starting from 2021 to 2024.
• Base Year: 2024
• Forecast Data until 2031
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• Australia Renewable Energy Market Outlook
• Market Size of Australia Renewable Energy Market, 2024
• Forecast of Australia Renewable Energy Market, 2031
• Historical Data and Forecast of Australia Renewable Energy Revenues & Volume for the Period 2021-2031
• Australia Renewable Energy Market Trend Evolution
• Australia Renewable Energy Market Drivers and Challenges
• Australia Renewable Energy Price Trends
• Australia Renewable Energy Porter's Five Forces
• Australia Renewable Energy Industry Life Cycle
• Historical Data and Forecast of Australia Renewable Energy Market Revenues & Volume By Technology for the Period 2021-2031
• Historical Data and Forecast of Australia Renewable Energy Market Revenues & Volume By Wind for the Period 2021-2031
• Historical Data and Forecast of Australia Renewable Energy Market Revenues & Volume By Solar for the Period 2021-2031
• Historical Data and Forecast of Australia Renewable Energy Market Revenues & Volume By End-User for the Period 2021-2031
• Historical Data and Forecast of Australia Renewable Energy Market Revenues & Volume By Utilities for the Period 2021-2031
• Historical Data and Forecast of Australia Renewable Energy Market Revenues & Volume By Captive Industrial for the Period 2021-2031
• Historical Data and Forecast of Australia Renewable Energy Market Revenues & Volume By Commercial for the Period 2021-2031
• Historical Data and Forecast of Australia Renewable Energy Market Revenues & Volume By Residential for the Period 2021-2031
• Australia Renewable Energy Import Export Trade Statistics
• Market Opportunity Assessment By Technology
• Market Opportunity Assessment By End-User
• Australia Renewable Energy Top Companies Market Share
• Australia Renewable Energy Competitive Benchmarking By Technical and Operational Parameters
• Australia Renewable Energy Company Profiles
• Australia Renewable Energy Key Strategic Recommendations

Market Covered

The report subsequently covers the market by following segments and subsegments:

By Technology

• Wind
• Solar

By End-User

• Utilities
• Captive Industrial
• Commercial
• Residential