What the Australian Energy Update 2026 means for your power bill
The Department of Climate Change, Energy, the Environment and Water (DCCEEW) has just released its Australian Energy Update 2026, the official yearly snapshot of how Australia makes and uses energy.
The report analyses trends and gives some shape to the Australian Energy Statistics, which is a collation of the data used to inform and support government and corporate decision making.
A new, interactive dashboard featuring electricity generation information has been added for the 2026 publication (you can view that here). Meanwhile, the state and territory infographics break the data down into a format that’s more visual and easier to digest for many of us.
The report itself contains a lot of tables and charts, so if you’re an energy “nerd”, you could spend hours looking through all the detail (you can access it via the DCCEEW website here).
For those who might not want to do a deep dive themselves, we’ve had a look at the update so we can give you a simple overview of what it says, minus the jargon.
Renewables hit a new high
In 2025, 39.6% of Australia’s total electricity generation came from renewable sources, the highest share on record. On the main grids, renewables reached 42.0%, up 3.9 percentage points on 2024. Renewable generation has more than doubled over the past decade.
Solar is doing the heavy lifting
Solar provided 19.7% of generation, wind 14.0% and hydro 4.7%. Rooftop solar accounted for 12.2% of Australia’s total generation, and large-scale solar for 7.5%. In other words, the panels on Aussie homes and businesses generate more than all of our utility-scale solar farms combined.
About 21.5% of Australia’s electricity in 2024-25 was generated by households and businesses themselves, outside the electricity sector.
Coal keeps shrinking, but it isn’t gone
Fossil fuels still supplied 60.4% of electricity in 2025, made up of coal (42.7%), gas (16.2%) and oil (1.6%). But coal’s share fell from 45.2% in 2024, and generation from every type of fossil fuel dropped in 2025.
Demand is rising
Total generation rose 1.3% in 2024-25 to around 282 terawatt hours. The department points to cooling demand, the electrification of heating and population growth as drivers.
Australians are switching to reverse-cycle air conditioning, induction cooktops and electric vehicles, and the grid has to keep up.
Electricity is only part of the picture
Renewables made up 10.1% of Australia’s total energy consumption in 2024-25, and nearly a third of that still comes from burning biomass such as firewood and bagasse. That covers transport, industry and heating, not just electricity. Cleaning up the power grid is the big early win, but there’s more to do.
What it means for you
Daytime power is where the abundance is. With this much solar on the grid, midday is often when energy is plentiful. Running the dishwasher, washing machine or EV charger in those hours can make good use of it, especially on a plan that rewards you for doing so.
Home batteries are worth a look. They store surplus solar for the evening peak. Home battery installations jumped 260% year on year in 2025, according to the Clean Energy Council.
Your plan matters. As the grid changes, so do the ways retailers price energy. Time-of-use pricing, solar feed-in rates and battery-friendly plans reflect this new mix. It’s worth checking that yours still suits how you use energy.
How GloBird can help
At GloBird Energy, we’ve been helping households and businesses get more from the energy transition for a decade, and we’ve been recognised for it by WeMoney, Finder, Canstar and Mozo.
Our ZEROHERO plan, named Most Innovative Plan 2026 by WeMoney, was built for people who want to make the most of the shift to cheaper, cleaner energy, by setting their battery’s charge and discharge times.
Our FOUR 4 FREE plan offers four full hours of zero-cost power when the sun’s at its peak between 11am and 3pm.
You can quickly and easily find out if GloBird Energy has an electricity or gas plan that suits you better than the one you’re on by comparing your bill or getting an instant quote online.
Then you can enjoy our low-cost energy for as long as you like, because our electricity and gas plans come with no lock-in contracts and no termination fees.