Australia’s lowest cost energy pathway is through renewables and storage, which are helping shield us from the global volatility of fossil fuels like coal, oil and gas.
These findings from the CSIRO’s latest GenCost 2025-26 report, welcomed today by the Smart Energy Council, demonstrate once again that solar, wind and battery storage are providing Australians with the cheapest source of energy independence now and into the future.
The report further notes that battery costs are projected to continue falling, in stark contrast to increasing costs of coal, gas and nuclear, largely due to global demand from data centres.
As is consistent with modelling by the Australian Energy Market Operators (AEMO) Integrated System Plan (ISP), the GenCost report finds that gas fired power generation is, and will continue to, play a small role in the nation’s electricity market, of around 3-7%.
“Batteries storing solar and wind power are radically reshaping our electricity markets, pushing out unreliable and expensive coal and gas and lowering our energy costs in the process,” Smart Energy Council Chief Executive David McElrea said.
“The trend is undeniable, solar and wind – backed by storage – is making our grid cheaper and more secure. Even more so when it comes to household solar and storage.”
“We should fill every rooftop in the country with solar panels and attach a grid supporting battery, on the remaining homes, warehouses, farm sheds and industrial estates.”
The GenCost 2025-26 report is consistent with recent findings from the Australian Energy Regulator, Australian Energy Market Operator, Australian Competition and Consumer Commission, whose landmark reports highlight the decreasing cost of energy being delivered through solar, wind and storage.
“Australia’s leading science, energy and consumer agencies are all saying the same thing, renewables are the lowest cost pathway for homes and businesses,” Mr McElrea said.
“The engineering, economic and environmental case for renewable energy is crystal clear: it’s delivering cheaper, more reliable energy and reducing dangerous emissions from coal, gas and other fossil fuels. Exactly as intended.”
“The CSIRO is sending clear warnings to households and industry with its latest report, fossil fuel costs are increasing, and with that carbon pollution and global warming.”
“Australia can and must meet its 82% renewable energy target, and 70% emission reduction target, but we have to move faster.”
“Along with the consequences of climate change on the planet, losses in Australian property value are forecast to increase to $770 billion, and spending on disaster recovery to increase six-fold.’’
“The current federal budget also shows Australia’s yearly spend on climate events sits at $1.6 billion, with over $5 billion earmarked for Pacific neighbours to become climate resilient and navigate immediate impacts of climate events. This will only increase if we don’t act.”
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Media Contact:
Tim Lamacraft – tim@smartenergy.org.au – 0448 972 192
