For offshore wind, Australian homeowners need to understand what is happening now, what it could mean for electricity prices, and why projects such as the Star of the South wind development are attracting attention.
The key point is that offshore wind will not suddenly change your electricity bill when the first wind turbines start. Its impact will unfold through wholesale electricity markets, network investment, generation reliability and the evolving mix of energy sources.
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Quick answer
- Offshore wind is emerging as a new source of large-scale renewable electricity in Australia, with Victoria currently leading development and the first 2 GW auction underway in Gippsland.
- Homeowners will not have offshore wind turbines on their roofs or properties. Its main household impact will come through the electricity grid, wholesale prices, reliability and the broader transition away from ageing fossil-fuel generation.
- Rooftop solar and batteries remain directly relevant to household energy costs. Offshore wind is a grid-scale technology, while home solar and battery systems give households more control over when and how they use electricity.
What is offshore wind in Australia and why should Australian homeowners care?
Offshore wind uses large turbines installed in the ocean to capture stronger and more consistent wind resources. Electricity generated by the turbines travels through subsea cables to an onshore connection point before entering the electricity network.
Australia has identified six priority areas for offshore renewable energy development: Gippsland in Victoria; the Hunter and Illawarra in New South Wales; the Southern Ocean off Victoria; Bass Strait off northern Tasmania; and the Indian Ocean off Bunbury in Western Australia.
That does not mean every declared area will become an operating offshore wind farm. A declared area is an early planning step, followed by feasibility investigations, environmental assessment, licensing, approvals, financing and construction.
The key facts
Some of the most important facts for homeowners are:
- Offshore wind is a grid-scale generation technology, not a residential energy product.
- Australia’s first major offshore wind development is expected to emerge from Victoria’s Gippsland region.
- Victoria has legislated targets of at least 2 GW by 2032, 4 GW by 2035 and 9 GW by 2040.
- The Gippsland offshore wind area has nine active feasibility licences.
- Australia’s first offshore wind auction opened in Victoria in August 2026 for the first 2 GW.
- Successful Victorian projects are expected to receive contracts in 2028.
- Offshore wind remains more expensive and technically complex to develop than established onshore wind and solar in Australia.
- Homeowners are unlikely to see a direct offshore wind charge on their electricity bill. Costs and benefits flow through the broader electricity market and network.
The scale is significant. The Gippsland declared area covers about 15,000 square kilometres and has potential generation capacity estimated at up to 25 GW.
Why this matters right now in Australia
The timing is closely connected to Australia’s changing electricity system. Ageing coal-fired generators are retiring, electricity demand is changing, and governments and market bodies are planning for a much larger role for renewable generation, batteries, transmission and other flexible technologies.
Victoria is furthest along. Its first offshore wind auction opened in August 2026, with projects bidding to deliver 2 GW of capacity, enough to generate electricity equivalent to the annual consumption of about 1.5 million homes.
For offshore wind Australia homeowners, this means the subject has moved beyond a purely conceptual discussion. However, it remains a long-term infrastructure story rather than an immediate household technology.
How offshore wind works and the current state in Australia
Offshore wind works on the same basic principle as onshore wind, but the equipment is designed to operate in a much harsher marine environment.
Wind turns the turbine blades, which rotate a generator. Electricity is then transmitted through cables beneath the seabed towards an onshore connection point.
Technical explanation
A typical offshore wind project involves several major components:
- Wind turbines: Large machines convert wind energy into electricity.
- Foundations: Fixed-bottom turbines are anchored into the seabed in shallower waters.
- Floating platforms: Floating turbines can operate in deeper water where fixed foundations become impractical.
- Array cables: These connect individual turbines within the wind farm.
- Export cables: Larger cables transport electricity towards the coast.
- Onshore infrastructure: Electricity is connected to the transmission network through substations and high-voltage equipment.
Australian examples and data
The Star of the South wind project off Gippsland is Australia’s most advanced proposed offshore wind development. Its developer says the project could have up to 2.2 GW of installed capacity and generate enough electricity to power around 1.2 million homes.
The project is planned for waters off Victoria’s Gippsland coast and remains subject to the relevant environmental, regulatory, commercial and project approvals.
The broader Gippsland offshore wind area is considerably larger. Commonwealth authorities estimate potential generation of up to 25 GW and significant employment opportunities if the wider area is developed.
Elsewhere, progress is less advanced. The Hunter offshore wind area in NSW covers 1,854 square kilometres, but the sole feasibility licence offer made in 2025 was not accepted. In the Illawarra, no feasibility licences had been granted as of early 2026.
Western Australia is also progressing. Three feasibility licences have been granted for proposed projects in the Bunbury offshore wind area, which covers nearly 4,000 square kilometres and sits at least 30 kilometres from shore at its closest point.
This uneven progress is important. Offshore wind farm projects in Australia are not all at the same stage, and a declared zone should not be confused with an approved wind farm.
What does offshore wind mean for your electricity bills?
This is one of the most important questions for offshore wind Australia homeowners.
The short answer is that there is no simple one-for-one relationship between an offshore wind project and the retail electricity price a household pays.
Your electricity bill contains several components, including wholesale energy costs, network charges, environmental and policy costs, retailer costs and other regulated components.
Short-term impact
In the short term, offshore wind projects can require substantial investment before they generate their first kilowatt-hour. Development involves:
- Environmental assessments
- Marine surveys
- Port upgrades
- Specialist construction equipment
- Subsea cables
- Transmission infrastructure
- Financing costs
- Workforce development
- Grid connection infrastructure
These costs need to be recovered over the life of the project. CSIRO’s current GenCost analysis also highlights rising construction costs and supply-chain constraints as challenges for Australia’s electricity transition.
That means it would be misleading to promise that offshore wind will automatically reduce household electricity bills as soon as projects are approved.
The first projects also need financial support and revenue certainty. Victoria’s first offshore wind auction is designed to provide a pathway for investment in the initial 2 GW.
Long-term implications
Over the longer term, the economics can look different. Once an offshore wind farm is operating, its fuel source is free. Unlike coal or gas, wind does not need to be purchased, transported, or extracted.
Offshore wind can also diversify the generation mix. This matters because Australia’s future electricity system will need generation that complements solar, onshore wind, batteries, hydro and other technologies.
Victoria’s experience with renewable generation provides useful context. The Victorian Government reported an average wholesale electricity price of $78 per MWh over the previous year, compared with $103/MWh in NSW, $96/MWh in Tasmania, $87/MWh in South Australia and $85/MWh in Queensland.
Those figures should not be interpreted as proof that offshore wind alone caused price differences. Wholesale prices reflect many factors, including generation availability, weather, transmission constraints, demand and fuel costs.
For homeowners, the practical lesson is simple: offshore wind electricity prices are only one piece of the household energy-cost puzzle.
A well-sized rooftop solar system and battery can still give homeowners more direct control over electricity use by reducing how much electricity a home needs to buy from the grid.
What Australian homeowners can do right now?
The arrival of offshore wind does not mean homeowners need to change their solar or battery plans.
In fact, households can focus on technologies they can control today while monitoring how the wider electricity system develops.
Actionable steps
1. Check your current electricity consumption
Review your annual electricity use and identify when your household uses the most energy. Heating, cooling, hot water, pool pumps, EV charging and cooking can all influence demand.
Powering up your EV with solar
If you’re thinking of buying an EV, adding an EV charger to your solar system is a smart way to “fuel” your car with clean, renewable energy.
2. Review your solar performance
If you already have rooftop solar, check whether the system is producing as expected.
Shade, inverter issues, panel degradation, poor system design or changing household consumption can affect performance.
3. Consider solar battery storage
A solar battery storage system can store excess solar electricity during the day and make it available later. This can increase self-consumption and reduce reliance on grid electricity in the evening.
Use Energy Matters’ easy-to-use solar power and solar battery storage system calculator to determine the right size for your solar system with storage. Our solar calculator will generate performance information and potential savings.
We can send this information to 3 pre-vetted, trusted local installers in your area so they can provide obligation-free solar quotes and help you take the first step toward true energy independence!
4. Compare electricity retailers
Retail plans change regularly. Look beyond the headline electricity rate and examine daily supply charges, usage rates, solar feed-in tariffs, battery compatibility and time-of-use pricing.
5. Plan for electrification
If you are replacing gas appliances, buying an EV or installing a heat-pump hot-water system, consider how those loads can work with your solar and battery system.
Energy Matters recommends switching to energy-efficient appliances now for smarter savings and a more environmentally friendly lifestyle.
6. Monitor policy changes
Energy policies, tariffs, rebates and network arrangements can change. Use official state and federal sources when checking current eligibility.
Questions to ask your installer or retailer
Before investing in solar or batteries, ask:
- What is my current annual electricity consumption?
- How much electricity does my household use after sunset?
- What battery capacity would be appropriate?
- Will the battery work with my existing inverter?
- What happens during a blackout?
- Can the system provide backup power?
- What are the ongoing warranties?
- What electricity tariff is the system designed around?
- How much solar generation is likely to be exported?
- What happens if wholesale electricity prices change as Australia’s generation mix evolves?
The important distinction is that offshore wind is a grid-level investment, while rooftop solar and batteries are household-level investments.
Expert insight: Energy Matters’ perspective is that households should not wait for large-scale energy projects to improve energy efficiency or consider solar and battery storage. Homeowners can make decisions based on their own consumption, property and electricity tariff today.
State-by-State Considerations
- Victoria (VIC): Leads the race with aggressive targets (2GW by 2032, 9GW by 2040) and active development in the Gippsland and Southern Ocean zones.
- New South Wales (NSW): Actively assessing the Hunter and Illawarra regions, leveraging existing coastal transmission and industrial demand.
- Queensland (QLD): Primarily focused on onshore solar, wind, and pumped hydro, but keeping an eye on offshore potential.
- South Australia (SA): Strong focus on onshore solar and wind, with some involvement in Southern Ocean project assessments.
- Western Australia (WA): Significant future potential, but current policy primarily supports onshore development.
Frequently asked questions
Will offshore wind reduce Australian electricity bills?
Offshore wind could put downward pressure on wholesale electricity prices if projects deliver competitively priced generation and increase supply when electricity is needed. However, household bills also include network, retailer and other costs, so offshore wind alone cannot guarantee lower retail prices.
What is Australia’s first offshore wind farm?
The Star of the South project off Victoria’s Gippsland coast is Australia’s most advanced proposed offshore wind project. It has a proposed capacity of up to 2.2 GW and is being developed alongside other projects in the Gippsland offshore wind area. It still requires relevant approvals and project development milestones before construction.
Will offshore wind affect my rooftop solar?
Offshore wind should not directly reduce the electricity your rooftop solar system produces. It can, however, change the broader electricity market by adding large-scale renewable generation. Your solar and battery system will continue to operate at household level, subject to network and market rules.
Is offshore wind more expensive than solar?
Offshore wind generally has higher construction and development complexity than large-scale solar and onshore wind in Australia. CSIRO’s latest GenCost analysis indicates that some low-cost offshore wind resources could become competitive with future generation prices, but Australian projects still need to demonstrate commercial-scale costs.
Where will offshore wind farms be built in Australia?
Commonwealth priority areas include Gippsland and the Southern Ocean in Victoria, Hunter and Illawarra in NSW, Bass Strait off northern Tasmania and the Indian Ocean off Bunbury in WA. A declared area does not automatically mean a wind farm will be built, because projects must pass feasibility, environmental, licensing and commercial stages.
Key takeaways
- Offshore wind: Australian homeowners should see the technology as a future grid-scale source of electricity, not a replacement for rooftop solar.
- Victoria is currently furthest ahead, with Australia’s first offshore wind auction open for the first 2 GW of Gippsland projects.
- Offshore wind could contribute to energy security and wholesale market competition, but it will not automatically translate into lower household bills.
- Solar and batteries remain practical technologies homeowners can use now to reduce grid dependence and manage household energy costs.
- Watch project approvals, transmission development, auction outcomes and real-world costs from 2027 onwards before drawing conclusions about the long-term household impact.
Get a free solar + battery quote from accredited Australian installers
Offshore wind is becoming a real part of Australia’s energy planning, but the transition will take years. For homeowners, the biggest changes will occur indirectly through the electricity grid, wholesale markets, generation mix and transmission investment.
The good news is that households do not need to wait for offshore wind to take control of their energy future. Energy Matters can help you assess your solar and battery options today, compare your household energy needs and connect you with SAA-accredited installers.
Sources and References
- Australian Government DCCEEW: Australia’s six offshore wind priority areas, including Gippsland, Hunter, Illawarra, Southern Ocean, Bass Strait and Bunbury. DCCEEW offshore wind areas
- DCCEEW: Gippsland declared offshore wind area, including its 15,000 km² area, potential 25 GW capacity and nine active feasibility licences. DCCEEW Gippsland offshore wind area
- Victorian Government: Australia’s first offshore wind auction opened in August 2026, targeting the first 2 GW, with contracts expected in 2028. Victoria offshore wind auction and current status
- Victorian Government: Legislated offshore wind targets of at least 2 GW by 2032, 4 GW by 2035 and 9 GW by 2040. Victoria renewable energy and storage targets
- AEMO: The 2026 Integrated System Plan and its treatment of Gippsland offshore wind transmission. AEMO 2026 Integrated System Plan, AEMO 2026 ISP consultation material
- CSIRO: 2025-26 GenCost assessment of generation costs and offshore wind’s economic position. CSIRO GenCost FAQs
- Star of the South: Current project information, including proposed 2.2 GW capacity and potential to supply around 1.2 million homes. Star of the South project overview
- DCCEEW: Current Bunbury offshore wind status and the three feasibility licences granted in WA. DCCEEW Bunbury offshore wind area
- ABC News: Current reporting on Star of the South’s environmental assessment and project timeline. ABC News, Star of the South environmental assessment
- ABC News: Reporting on the potential transmission implications of Gippsland offshore wind.
- The Guardian Australia: Reporting on the challenges facing Australia’s emerging offshore wind sector, including project costs and investor uncertainty.
- Australian Government: 2025-26 Default Market Offer information for understanding how wholesale and network costs contribute to household electricity prices. Australian Government, 2025-26 Default Market Offer
