Minister for Energy and Resources Lily D’Ambrosio said more than 42 per cent of Victoria’s electricity was produced by cheap renewable energy, making the state well on track to hit its legislated target of 40 per cent by the end of 2025.

The record level of renewable energy generation has also resulted in Victorians paying the lowest wholesale power prices in the country.

In Victoria, the average wholesale price for energy was $107 per megawatt hour last year, compared to $151 for NSW, $138 for South Australia, $127 for Queensland and $115 for Tasmania.

“Our focus is on delivering cheaper power bills for Victorian families – helping to cut the cost of living and put more money back in the pockets of Victorian families,” D’Ambrosio said.

“Our record investment in renewable energy is paying off – Victoria consistently has the lowest wholesale power prices in the country, helping to slash energy bills for families and businesses.”

Victoria hosts more than 90 renewable energy projects which the government said has added close to seven gigawatts of renewable energy capacity to the grid.

There are another 50 gigawatts of proposed or committed projects too.

Once completed, the government predicts these projects will collectively power 574,000 households anually.

Meanwhile, solar panels contributed to 11 per cent of the state’s energy last financial year.