Why renewable energy makes sense - and why it doesn’t
Why Renewable Energy Makes Sense – and Why It’s More Than Just a Trend
Australia and many nations are aiming to achieve net zero carbon emissions by 2050, and renewable energy will play a central role in making that a reality (Kaplan, 2022). For households wondering whether renewables are worth the effort and investment, the answer is increasingly yes — but with a few caveats. Here’s why renewable energy makes sense and what to be aware of.
The Case for Renewables
1. Reducing Carbon Emissions and Meeting Global Goals
As countries shift from fossil fuels to clean energy sources, households can play their part by adopting solar, wind, and other renewables. The Australian government had set a target for 23.5% renewable energy by 2020 — a target reached early in 2019 (Freigedo, 2021). The current goal is 82% of electricity from zero-emission sources by 2030. Globally, energy transition investment exceeded US$2 trillion in 2024 (BloombergNEF, 2025).
2. Falling Costs Make Renewables Attractive
Renewables are no longer just about being environmentally friendly — they are economically competitive. The cost of residential and utility solar photovoltaic has dropped by 64% and 84% respectively since 2010 (The Conference Board, 2024). Wind and solar are now cheaper than coal and natural gas in many markets. Households that invest in solar are not only cutting their emissions but also cutting long-term energy costs. With lower maintenance and no raw material expenses, renewables are a smart long-term bet.
3. Energy Independence and Security
By generating their own electricity, households can reduce reliance on traditional power grids. As Australia and other nations face volatile fossil fuel prices, having rooftop solar or home batteries makes households more resilient and less exposed to energy price shocks.
4. Growth in Renewable Energy and Storage
As more households and businesses adopt renewables, investment in energy storage solutions like batteries and pumped hydro is also growing. Storage solves one of the biggest issues with renewables — variability. It ensures that homes can use solar power even when the sun isn't shining.
But What About the Challenges?
While the case for renewables is strong, there are some real-world issues to consider:
1. High Upfront Costs
Although prices have come down, installing solar panels and home batteries still requires significant upfront investment. The long-term savings are real, but not everyone can afford to make that leap today.
2. Storage Still Evolving
Battery prices have fallen — from US$1,200 per kilowatt-hour in 2010 to US$115 in 2024 — but for many, storage remains expensive. Without storage, homes may still need to draw power from the grid during peak times or when solar generation is low.
3. Grid Limitations and Infrastructure Needs
Australia’s energy grid was designed for centralised fossil fuel generation, not distributed solar and wind. Upgrades are urgently needed to handle the influx of rooftop solar and large-scale renewables. Without them, homes may face export limitations — meaning they can’t always sell their excess solar power back to the grid (Kaplan, 2022).
4. Variability and Weather Dependence
Solar and wind are weather-dependent. Without sunshine or wind, generation drops. Storage helps, but current infrastructure isn't yet fully capable of handling these fluctuations. New investments in pumped hydro, hydrogen, and other storage tech will be essential to smooth out supply (Kaplan, 2022).
The Growth Opportunity
The shift to renewables is also an opportunity. As traditional energy exports like coal and gas decline, Australia is exploring green hydrogen and other renewable exports. Projects like exporting solar energy from northern Australia to Singapore are under serious consideration (Net Zero Australia, 2022). For households, this suggests future-proofing — joining the shift early to benefit from incentives and technological advancements.
Why the Economics Make Sense
In addition to the environmental benefits, the economic argument for renewables is now overwhelming. As solar and wind undercut coal and gas, the cost advantage grows. Companies looking to cut their Scope 2 emissions (from purchased electricity) are also demanding clean power, pushing utilities and markets toward renewables (Kaplan, 2022).
The Bottom Line
Renewable energy is no longer a niche idea — it's the future of Australia's energy system, and households are a key part of that transition. Yes, upfront costs and storage are hurdles, but cost declines, government targets, and technological progress are making solar and batteries more accessible every year.
With government incentives, falling prices, and increasing demand for clean energy, now is the time for households to consider how renewables can work for them. The shift to net zero by 2050 requires everyone to play a part, and homes powered by solar and wind will be central to reaching that goal.
So, if you’re thinking about making the switch, you’re not just investing in your own future — you’re investing in the planet’s future, too.
References:
Kaplan Education, 2022, Renewable Energy Module
BloombergNEF, 2025, “Report: Solar Power is Cheaper Than Ever—but Overreliance Risks Destabilizing US Electricity Markets and Undermining Energy Investments”
The Conference Board, 2024, “Types of energy ranked by cost per megawatt hour”
Net Zero Australia, 2022
Freigedo, S., 2021, “Clean Energy Investing: How to Invest in Renewable Energy in Australia”
Packham, C., 2022, “Global giant Equinor to develop NSW offshore wind projects”
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