Contents
With recent legislation aiming to reduce Australia’s carbon emissions by 43% in the next 8 years, there’s no better time for renewable energy solutions. Launching a startup in the renewable energy sector is more than just an opportunity to earn a profit – it’s also a sustainable and ethical contribution to our nation’s future.
In this article, we’ll take a look at what it means to launch a startup in Australia’s renewable energy sector in 2025, as well as some legal requirements you may need to consider. Keep reading to learn more!
Renewable Energy Startups Australia
Clean energy solutions in Australia continue to evolve rapidly in 2025, with public awareness and demand for greener options now at an all-time high.
According to the Clean Energy Council, nearly 40% of the energy generated in Australia this year comes from renewable sources – a notable improvement that provides an optimistic outlook for the future of clean energy Down Under.
Furthermore, the Australian Renewable Energy Agency (ARENA) has ramped up its support in 2025, investing millions of dollars in promising renewable energy startups. This significant financial boost not only accelerates innovation but also underscores the essential role that renewable solutions will play in our nation’s sustainable progress.
There is a clear and growing interest in renewable energy. Established companies such as Brighte, Redback Technologies and Amber Electric have successfully carved out their niche, demonstrating the rewarding potential of this industry. For further guidance on setting up your business for long-term success, check out our insights in Does Business Structure Matter?
It’s a common misconception that renewable energy is solely about solar panels and wind turbines dotting the horizon. While these technologies are vital, the renewable energy sector is multifaceted – offering opportunities in diverse areas ranging from energy storage and hydrogen production to cutting-edge clean technology innovations.
Renewable energy careers can span architecture, marketing, engineering, consulting, farming, mechanics, and much more. If you’re considering entering this field, it pays to assess your own strengths and determine where you can make the most meaningful impact.
The diversity within renewable energy is reflected in the range of specialised startups emerging across Australia.
Types Of Energy Startups Australia
Renewable energy solutions are not one-size-fits-all. Different methods are more effective in varying contexts, which is why it’s important to have a range of specialisations within the sector.
We’ve listed a few classes of renewable energy startups that are thriving in Australia today.
Hydrogen Startups Australia
Hydrogen startups utilise advanced water splitting technologies and catalysts to generate energy. In 2025, Australia has reinforced international collaborations – teaming up with partners like Germany – to fund next-generation hydrogen projects that are set to transform our energy landscape.
Solar Energy Startups
Solar energy startups capture the sun’s heat and convert it into power. It’s common to see solar panels on homes and businesses alike, helping residents reduce their electricity bills while contributing to a cleaner environment.
Many electricity providers now integrate solar solutions into their service offerings, further demonstrating how mainstream and accessible solar energy has become.
Green Energy Startups
Green energy harnesses natural resources such as sunlight, wind, and water to produce energy without polluting the environment. In addition to hydrogen and solar, wind energy startups – which deploy state-of-the-art wind turbines – are an integral part of Australia’s green revolution.
Clean Energy Startups
Clean energy startups focus on generating power with minimal or zero greenhouse gas emissions. Although the concept overlaps with green energy, clean energy can also comprise technologies that do not solely rely on natural resources – for instance, nuclear power is considered a form of clean energy. Thus, while all green energy is clean, not every clean energy solution is categorised as green.
By diversifying into various clean energy technologies, startups are ensuring that Australia’s transition to a low-carbon future remains robust and resilient.
Energy Storage Startups
Energy storage startups capture excess energy produced during peak generation times, storing it efficiently for use when demand is high. This not only prevents valuable energy from going to waste but also stabilises supply during periods of fluctuating generation.
Utilising advanced battery technologies, chemical processes, or pumped hydro storage systems, these startups are becoming increasingly essential as renewable energy adoption expands across Australia in 2025.
How To Start A Renewable Energy Startup
Now that we’ve provided an overview of renewable energy in Australia, it’s time to consider launching your own renewable energy startup.
We’ve compiled a list of key factors you need to assess when setting up your renewable energy business.
Choose A Business Structure For Your Renewable Energy Startup
Deciding on a business structure is one of the most foundational decisions you will make. Your chosen structure will affect everything from registration and operations to taxation and regulatory compliance.
Carefully choose a structure that aligns with your business goals and personal circumstances. The most common structures include:
- Sole Trader
- Company
- Trust
Each structure carries its own requirements and liability considerations. For instance, a sole trader operates with unlimited liability, while a company structure offers the benefit of limited liability and a greater shield of protection. Knowing how to change your business structure later on can also be valuable as your startup grows.
If you’re unsure about which structure is best for your venture, it’s a good idea to consult with a legal professional who specialises in small business law.
Register Your Renewable Energy Startup
Once you’ve selected a business structure, the next step is to register your business. Every Australian business needs an Australian Business Number (ABN), which you can obtain online after submitting your details and paying the required fee. Once approved, you will receive your unique 11-digit ABN.
If your startup is established as a company, you will also need an Australian Company Number (ACN). Remember that the types of taxes and other statutory obligations you encounter will vary according to your business structure, industry, and organisational setup.
Get Funding For Your Startup
You’ve likely heard the famous adage, “you must spend money to earn money.” While this isn’t universally true, it is certainly applicable in the business world. To help your startup grow, securing adequate funding is essential.
There are several avenues available for funding your startup, and the best option depends on your individual situation:
- Bootstrapping: Using your personal funds to launch the business can be attractive since it avoids debt, but it might also put your personal finances at risk.
- Getting a loan: Approaching a bank or private lender for a loan may provide the capital you need, though you must carefully consider terms and interest rates.
- Capital raising: Attracting investors in exchange for equity is a common strategy for startups to secure funds.
- Crowdfunding: Pitch your idea to the public and gain support through donations or pre-orders.
- Grants: While competitive, both government and corporate grants can provide valuable financial assistance if you qualify.
Also, if you’re keen to learn more about managing your startup’s finances effectively, check out our guide on paying yourself as a startup founder to ensure your remuneration aligns with your business growth.
Legal Documents For A Renewable Energy Startup
There are several legal documents you will need to secure for your startup. Having the right legal documents in place can help protect your venture, so it is essential to have them drafted by a legal professional.
Below is a list of key documents to consider:
Employment Contracts
If you plan on hiring staff, it is crucial to have an Employment Agreement to clearly define roles, responsibilities, and resolve any disputes.
Employment contracts typically cover details such as:
- Pay
- Leave
- Entitlements
- A clear role description
- Duties and responsibilities
- Conflict resolution procedures
- Termination conditions
These contracts can also incorporate clauses such as Non-Compete Clauses to safeguard your business practices and trade secrets.
Terms and Conditions
Terms and Conditions outline the rules and behaviours expected from users when interacting with your business. These agreements help manage customer expectations and can limit your liability in case of disputes.
Clear, comprehensive terms ensure that everyone knows their obligations, and provide you with the authority to take action if those terms are breached.
They also play a key role in limiting your liability for issues that may arise during business transactions.
Privacy Policy
If your startup operates online, you may be required to have a Privacy Policy. In many cases, businesses with an annual turnover exceeding $3 million—or those collecting personal information regardless of size—must comply with the Privacy Act 1988 and the Australian Privacy Principles.
Your Privacy Policy should inform users about what personal information is collected, why it is collected, how it is stored, and whether it will be shared with third parties. It should also explain how users can access their data and exercise their rights.
For more guidance on privacy matters, our Privacy Policy guide offers practical advice for ensuring compliance.
Protect My Startup’s IP
It’s crucial to secure your business’ intellectual property (IP), from logos and designs to trade secrets, as these intangible assets form the backbone of your brand identity. One of your first steps should be to protect your business’ IP by including confidentiality clauses or entering into Non-Disclosure Agreements where necessary.
Additionally, consider registering your brand’s logo or name as a trademark with IP Australia – a step that can provide further legal protection. You can find out more about the trademark registration process here.
Beware Of Greenwashing
Greenwashing occurs when businesses exaggerate or falsely claim their environmental credentials. Not only is this practice misleading and unethical, but it also violates the principles of the Australian Consumer Law (ACL).
Businesses advertising to individuals and small enterprises have several obligations under the ACL. To ensure your startup remains compliant, it’s crucial to be clear and truthful in all representations of your environmental impact – as detailed in our ACL for Businesses article.
An accusation of greenwashing can trigger an investigation by the Australian Competition and Consumer Commission (ACCC), potentially resulting in significant legal consequences. Therefore, maintain transparency regarding your products’ environmental attributes and ensure your claims are fully supported by evidence.
Avoid misleading consumers about the origins of your materials or the true nature of your production processes; honesty not only builds customer trust but also helps you steer clear of legal pitfalls associated with unfair marketing practices.
It’s also important to ensure that your legal documents do not contain unfair contract terms that could further expose your startup to compliance risks.
Need A Startup Lawyer?
Running a startup is a unique challenge, and sometimes it’s easier to speak with someone who specialises exclusively in startups rather than navigating all the complexities on your own.
At Sprintlaw, our legal team works with startups every day. From registering your business to ensuring ongoing compliance with ever-evolving regulations, we’re here to help.
If you would like a consultation on launching a renewable energy startup or need assistance with any legal matters relating to your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
In 2025, with evolving energy policies and an increasingly competitive market, staying updated on both legal obligations and technological advancements is vital. Regularly review regulatory updates and leverage resources like our Business Structure Guide to ensure your startup remains competitive and compliant.
Key Takeaways
Renewable energy is a rapidly expanding field full of potential. Establishing a startup in this sector can be incredibly rewarding, but it’s imperative to build your business on a solid legal foundation to ensure compliance and long-term protection.
To summarise what we’ve discussed:
- Renewable energy is a growing industry in Australia with a wide range of specialisations.
- Choose an appropriate business structure and register your business promptly.
- Secure funding from sources that align with your financial and business goals.
- Obtain the necessary legal documents to safeguard your operations.
- Protect your intellectual property by considering trademark registration and NDAs.
- Avoid greenwashing by being transparent and honest in your marketing.
Need Further Legal Guidance?
Whether you’re setting up your renewable energy startup or exploring innovative funding options, comprehensive legal support is crucial to navigate the complexities of the modern business landscape. Our extensive legal guides and experienced team are on hand to help every step of the way.
Get in touch now!
We'll get back to you within 1 business day.
Top 3 Legal Mistakes
Book in a free consultation with us to discuss your legal needs.