According to a year-in-review release issued by the Federal Government, the pace of renewable energy approvals increased through 2025, with changes felt across the National Electricity Market (NEM). In the year to 30 November, 54 renewable energy projects were approved nationally, taking the total to 123 projects approved since 2022 across all states and territories.
Once operational, these projects are expected to generate enough electricity to supply more than five million households and cut carbon dioxide emissions by more than 30 million tonnes a year. The Clean Energy Regulator estimates that close to seven gigawatts of new renewable capacity was added to the grid in 2025 across large-scale and smaller installations, equivalent to powering about 2.4 million homes.
The Australian Energy Market Operator’s latest Connections Scorecard shows the main grid development pipeline has expanded to 275 projects, representing 56.6 gigawatts of generation and storage capacity. Of these, 23.2 gigawatts of earlier-stage projects are finalising contracts or under construction, a year-on-year increase of 43 per cent.
Price signals emerge in the NEM
Wholesale electricity prices across the NEM were lower in 2025, with the average price between January and November sitting 14 per cent below the same period in 2024. The Federal Government said it wants to see this reduction flow through to retail bills.
Minister for Climate Change and Energy Chris Bowen said the direction of travel was clear.
“We are on track to bring down energy bills and meet our climate targets if we stay the course and continue to lift our efforts.”
Household uptake grows through targeted programs
At the household level, uptake of clean energy technology accelerated through a mix of incentives and finance programs.
More than 185,000 batteries were installed nationally through the Cheaper Home Batteries program in its first six months. Over the same period, more than 140,000 households installed rooftop solar for the first time, adding to the one-in-three Australian households that already have solar panels.
The Home Energy Upgrades Fund delivered 6,000 upgrades using technologies such as rooftop solar, batteries, heat-pump hot water systems, insulation and double-glazed windows. In social housing, 20,000 homes were upgraded under the Social Housing Energy Performance Initiative, aimed at reducing energy use and tenant bills.
Transport electrification also expanded, with around 320,000 motorists purchasing a new hybrid, electric or plug-in hybrid vehicle between January and November. The number of fast and ultra-fast public EV charging locations tripled since mid-2022, reaching 1,475 sites.
Councils and communities see on-the-ground changes
Local governments were direct participants in community-scale upgrades. Through the Community Energy Upgrades Fund, 128 councils received support for works that reduce energy use and operating costs. These included projects such as replacing gas-fired pool heating systems with electric alternatives.
Minister for the Environment and Water Murray Watt linked these outcomes to broader reform.
“We are setting Australia up for a future powered by renewables, which is the cheapest and cleanest energy available.”
Investment mechanisms back large projects
Large-scale generation and storage projects were supported through several national mechanisms that shape investment decisions.
Four tenders under the Capacity Investment Scheme opened during the year, covering 6.6 gigawatts of generation and 18.4 gigawatt hours of dispatchable capacity. Forty successful projects were announced across three further tenders, with combined output expected to power more than three million households.
Through the Australian Renewable Energy Agency, $1.2 billion was committed under Hydrogen Headstart, alongside funding for 34 additional projects to support more than $420 million across the innovation pipeline. The Clean Energy Finance Corporation injected more than $6.6 billion across over 30 transactions, supporting land use change, clean energy technology and major transmission projects.
