Renewable electricity is no longer a niche option in Australia. It is now a core part of how the grid is being rebuilt, how businesses are managing costs and risk, and how households are cutting bills with solar. If you are trying to work out what renewable energy is, what counts as renewable in Australia, and how you can actually buy renewable electricity, this guide covers the practical steps.
Australia’s energy market is regulated and it can be confusing: retailers sell electricity plans, networks charge regulated tariffs, and renewable claims are backed by certificates. The good news is that you can usually move to a lower cost plan and increase your renewable share at the same time, if you understand how it is structured.
What renewable energy means in Australia
Renewable energy is energy generated from sources that replenish naturally on a human timescale. In the Australian electricity context, renewable electricity generally means power generated from:
- Solar (rooftop and large scale solar farms)
- Wind (onshore, and in future offshore)
- Hydro (including pumped hydro for storage)
- Bioenergy (biomass, landfill gas, biogas)
- Geothermal (small in Australia, but still a renewable resource)
Most Australians interact with renewable energy in one of three ways:
- Using the grid while renewable generation feeds into it alongside coal and gas
- Installing onsite generation, usually rooftop solar, sometimes batteries
- Choosing an electricity plan or procurement structure that includes renewable claims, such as GreenPower, renewable energy certificates, or a power purchase agreement
How renewable electricity reaches your home or business
Electricity delivered through the grid is physically mixed. Your retailer cannot send a dedicated stream of electrons from a wind farm directly to your site. Instead, renewable electricity claims are made through accounting mechanisms that prove renewable generation occurred and was credited to the system.
In Australia, those claims are commonly supported by the Renewable Energy Target (RET) certificate schemes:
- LGCs (Large scale Generation Certificates): created by accredited renewable power stations, typically wind and solar farms.
- STCs (Small scale Technology Certificates): created when eligible rooftop solar and other small scale systems are installed, which is one reason solar can be cheaper upfront.
When someone buys and surrenders these certificates, it supports renewable generation and enables legitimate reporting claims.
The main types of renewable energy in Australia
Solar energy
Solar is Australia’s most visible renewable source. Rooftop solar can reduce daytime grid consumption, while utility scale solar adds energy to the grid in daylight hours. For businesses, the value of solar depends on operating hours, demand charges, export limits and tariff structure.
Solar is often paired with batteries to increase self consumption, reduce peak demand exposure and improve resilience.
Wind energy
Wind farms typically generate more during evenings and overnight, which can complement solar output. Wind is a major contributor to the grid transition because it can deliver large amounts of low marginal cost energy, but it also increases the need for firming resources like storage and fast start generation.
Hydro and pumped hydro
Hydro is one of Australia’s oldest renewable sources. Pumped hydro is different: it is primarily an energy storage technology that moves water uphill when electricity is cheap and releases it to generate power when electricity is valuable. Pumped hydro supports reliability as coal plants retire.
Bioenergy
Bioenergy includes landfill gas, agricultural waste, and industrial biomass. It can provide dispatchable generation, which is valuable for firming, especially where local fuel sources exist.
Emerging renewables and supporting technologies
Renewable electricity is increasingly supported by:
- Batteries: grid scale and behind the meter
- Demand response: paying large users to reduce load when the system is tight
- Electric vehicles: which may become flexible load and storage over time
- Green hydrogen: a potential energy carrier for hard to abate industries, still developing in Australia
Why renewable energy matters for Australian energy bills
In the wholesale market, renewable generators have very low operating costs once built. When there is plenty of solar and wind available, wholesale prices can fall sharply. However, renewable variability means prices can also spike when output is low and demand is high, especially in the evening peak. This is why storage, flexible demand and firming contracts matter.
For households and small businesses, the biggest bill drivers are often:
- Retail usage rates and daily supply charges
- Network tariffs and demand based charges, where applicable
- How your usage lines up with peak and off peak periods
- Solar export credits and how they interact with your tariff
How to buy renewable electricity in Australia
There are several ways to increase the renewable share of the electricity you purchase. The right option depends on whether you are a household, a small business, or a large energy user.
1) Choose a retailer plan with renewable inclusions
Some retailers offer plans marketed as carbon neutral or renewable backed. The important question is what is actually being purchased on your behalf. Look for details such as certificate surrender and whether claims are independently audited.
2) Add GreenPower
GreenPower is an Australian government accredited program that lets customers pay extra to purchase renewable electricity beyond mandatory requirements. GreenPower involves the surrender of eligible renewable certificates, giving clearer additionality than many generic green claims.
3) Buy and surrender renewable energy certificates
Businesses that report emissions often purchase and surrender LGCs to match electricity consumption. This can be done through a retailer, a broker, or as part of a structured procurement approach.
4) Use a power purchase agreement (PPA)
Larger businesses may use a PPA to lock in pricing and renewable supply attributes over a longer term. PPAs can be physical (linked to an offtake) or virtual (financial hedge). The structure impacts risk, accounting and settlement complexity.
5) Generate renewable electricity onsite
Rooftop solar is the most common onsite option. For larger sites, you might also consider:
- Solar plus battery systems
- Embedded networks and precinct solutions
- Energy efficiency upgrades that reduce load first, which improves the solar business case
What to check before switching to a renewable plan
If your goal is to cut costs and improve sustainability outcomes, make sure you check these items before changing plans or procurement strategy.
Understand your tariff and load profile
Many savings opportunities sit in the network and tariff layer, not just the retailer headline rate. A tariff review can identify whether you are on the best demand or time of use structure for how you actually consume electricity.
Check contract terms and fees
Some market offers include benefit periods, conditional discounts, or early termination fees. For businesses, also check pass through clauses and how environmental products are priced.
Validate renewable claims
Ask for clarity on whether renewable certificates are being surrendered, what type they are, and whether the claim is for 100% of usage or only a portion.
Consider state and network differences
Availability of plans and renewable options varies by state and by meter type. The rules can also differ between the National Electricity Market regions and non NEM markets, and embedded networks may have additional constraints.
Renewable energy and Australian regulation, the essentials
Australia’s electricity markets are shaped by national and state frameworks. While the details are complex, these are the key concepts that affect renewable energy choices:
- Renewable Energy Target (RET): drives certificate creation and surrender through LGCs and STCs.
- AEMO and the National Electricity Market (NEM): manage dispatch and system security in most states and territories.
- Network regulation: distributors set tariff structures and connection requirements that impact solar exports and demand charges.
- Emissions reporting: many businesses align renewable procurement with ESG targets and climate reporting, where certificate backed claims matter.
Practical ways to increase renewables and reduce costs
For many organisations, the best result comes from combining procurement and efficiency, rather than treating renewable energy as a bolt on.
- Start with bill and tariff analysis: identify avoidable charges and tariff mismatch.
- Compare retailer rates regularly: market offers change, and loyalty rarely pays.
- Reduce peak demand: operational changes, controls, batteries and demand response can reduce peak exposure.
- Use solar where it fits the load: strong daytime usage usually improves payback.
- Use certificate backed products for credible claims: especially if you report emissions to customers, investors or supply chains.
How Zembl helps businesses buy renewable electricity with confidence
Zembl helps Australian businesses compare energy offers, run tenders, and improve outcomes beyond signing a contract. That can include understanding renewable options in your contract, reviewing tariffs, and identifying efficiency opportunities that reduce your overall consumption.
If you want to explore renewable supply options alongside competitive commercial pricing, start with Zembl’s commercial services and we can guide you through what is available for your site and state.
Frequently asked questions
Is renewable energy cheaper in Australia?
New renewable generation is often among the lowest cost sources of new electricity. What you pay on your bill depends on your tariff, usage profile, retail margins, network charges and contract structure, not just generation type.
Can I get 100% renewable electricity from the grid?
You can purchase plans or products that match your usage with renewable certificates, meaning renewable generation is credited to the system on your behalf. Physically, grid electricity is mixed.
What is the difference between GreenPower and a green electricity plan?
GreenPower is a government accredited program with defined rules for eligible renewable electricity claims. Retailer green plans vary, so it is important to ask what certificates are purchased and surrendered to support the claim.
Do solar panels mean my home or business is running on renewable energy all the time?
Solar offsets some of your grid consumption during the day. At night or during low generation periods you typically draw from the grid, unless you have battery storage or other onsite generation.
How do renewable energy certificates work?
Certificates are created when eligible renewable electricity is generated (LGCs) or when small scale systems are installed (STCs). When certificates are surrendered, they can support renewable electricity and emissions reporting claims.
.svg)
.svg)
