Despite their success, investments in renewable energy projects have plummeted over the past year, with on-shore wind farms hit the hardest, a study has found.
The Clean Energy Council released the findings on Tuesday in a report that recommended policy changes to accelerate project approvals and reduce regulations to avoid slowing the energy transition.
The report comes one day after a senate estimates committee heard renewable energy projects were taking more than two years to approve — an issue that could be addressed by upcoming changes to environmental laws.
The Clean Energy Australia 2026 report analysed the nation's energy mix over the past year and found renewable projects generated 42.7 per cent of electricity, up from 38.9 per cent in 2024.
Wind farms and rooftop solar panels made the biggest contributions to Australia's renewable energy, at 15.7 and 13.9 per cent respectively, followed by solar farms and hydro projects.
Batteries also boomed during the year, the report found, with more than triple the number of home batteries installed at 268,675, and large-scale battery capacity tripling to reach two gigawatts.
The growth made Australia the world's third biggest adopter of utility-scale batteries, and Clean Energy Council chief executive Jackie Trad called the trend encouraging.
"2025 was a year of new records: more renewable energy, more batteries, more households generating their own power," she said.
But the report also identified a significant fall in financial commitments for renewable energy, with investments halving to $4.4 billion during 2025.
Backing for on-shore wind projects fell by 57 per cent, while utility-scale solar dropped by five per cent.
The reversal demanded immediate attention, Ms Trad said, and should be addressed to avoid losing momentum.
"Our sector's highest priority in 2026 must be to remove the barriers slowing investment in new large-scale wind and solar projects that will ultimately replace unreliable coal generators," she said.
"We cannot afford to let planning bottlenecks, connection queues and contract economics stall the good progress already made."
The study recommended a series of changes to address investment hurdles, including faster approvals, regulatory changes, and better communication to address misinformation campaigns.
The findings come a day after the federal government revealed renewable energy projects took 131 weeks to approve on average, while coal, gas and oil projects took 163 weeks.
The process would be hastened by upcoming changes to approval laws, Environment Minister Murray Watt said, that would streamline the assessment process.
"It takes too long and that's one of the reasons we reformed laws," he said.
"We need more renewable projects faster."
