Can you make money investing in energy? In short—yes. But like every profitable play, the devil’s in the detail. With Australia’s energy market undergoing rapid transformation—from renewables expansion to volatile wholesale pricing—investors are waking up to the fact that the sector isn’t just about big power stations anymore. It’s also about smart strategy, behavioural trends, and picking the right entry point.

Let’s unpack where the real opportunities lie, and whether energy deserves a spot in your investment portfolio.

Why is energy an attractive investment right now?

Energy has always been a backbone sector—essential, inescapable, and in constant demand. But 2025 has made it dynamic in ways we haven’t seen before.

Here’s what’s changed:

• Transition to renewables: Over 35% of Australia’s electricity now comes from renewable sources, with rooftop solar leading the charge.

• Volatile pricing: Wholesale electricity prices have seen record highs and sudden dips, making timing and hedging critical.

• Policy incentives: Federal and state governments are backing clean energy with subsidies, creating tailwinds for certain sub-sectors.

Put simply, energy investment is no longer about long-term yield alone. It’s become part timing, part technology, part behavioural trend-watching. That makes it ripe for returns—if you know where to look.

What types of energy investments are available?

Investors now have a buffet of options, ranging from the old guard to the green frontier. Some come with consistent yield, others with high risk/high reward profiles.

You can invest in:

• ASX-listed energy companies: Traditional players like AGL, Origin, and Santos, or renewable-focused firms like Genex and Tilt Renewables.

• Energy ETFs: Broader exposure without needing to pick winners.

• Battery storage and grid tech: This is where things get interesting—companies building the “pipes and brains” of the new energy grid.

• Retail and wholesale energy trading: Brokers and aggregators who profit off market inefficiencies (more on that later).

• Infrastructure projects: Direct stakes in solar farms, wind farms, or transmission upgrades—often via private funds or partnerships.

A diversified mix across these buckets helps balance volatility and potential upside.

Is the energy market too volatile for beginners?

It depends on what part of the market you enter. Investing in fossil fuel majors is still relatively “blue-chip”. But the renewables sector, particularly start-ups and tech enablers, can be more like surfing—thrilling but occasionally face-planty.

Here’s where behavioural economics comes into play. Loss aversion—our tendency to feel losses more than gains—can make energy investing feel riskier than it is. But long-term trendlines show a clear upward trajectory for clean energy.

The trick? Don’t get spooked by one bad quarter. That’s where commitment and consistency pay off—staying the course in a growing sector often trumps reactive sell-offs.

What role do energy brokers play in investment opportunities?

Energy brokers often fly under the radar. But they’re increasingly central to how money moves in this space. Why? Because they understand both retail and wholesale pricing mechanics—and profit from the gap between them.

For example, a savvy broker might secure a cheaper commercial supply deal in a region hit by a pricing spike, then leverage demand-side flexibility to lock in profit.

Smart investors are watching these players closely—not just for returns, but as a signal of where the market is heating up.

An in-depth breakdown of Australia’s broker landscape—including who’s winning in 2025—can be found here.

How are Australians investing in energy?

Anecdotally, the interest is booming. Platforms like CommSec report a 20% year-on-year increase in energy-sector holdings, particularly among millennial and Gen Z investors. But it’s not just shares—there’s been a rise in:

• Co-investing in solar farms via crowd-sourced investment vehicles.

• Green bonds offered by state governments to fund renewables infrastructure.

• Residential solar and battery installations framed as long-term ROI plays.

One Newcastle-based tradie we spoke to put it simply:

“I installed a 10kW system last year. My bills went negative. That’s the best return I’ve ever had.”

Sometimes the smartest energy investment is sitting on your own roof.

What are the risks of energy investing?

No market is without risk—and energy carries its fair share.

Watch out for:

• Policy backflips: A change in government can mean sudden shifts in subsidies or pricing structures.

• Tech uncertainty: Betting on the “wrong” battery or grid tech can feel like buying a Betamax in 1985.

• Overexposure: Don’t load your whole portfolio with energy just because it’s hot right now.

But the bigger risk? Inaction. As behavioural science shows, the cost of doing nothing often feels invisible—but it adds up over time.

Is energy investing ethical?

For many Aussies, investing is no longer just about returns—it’s about values. The energy sector offers a rare alignment of both.

Investing in solar, wind, and grid tech supports climate action. Even better, it’s starting to outperform legacy fuel sources.

If you’re looking for impact + income, energy ticks both boxes.

FAQ

Q: Is energy a short-term or long-term investment?
Both. Some plays (like trading volatility or broker aggregation) offer short-term returns. Others (like renewables infrastructure or green bonds) are better held long-term.

Q: How much should I invest in energy?
A good rule of thumb is 10–20% of your portfolio, depending on your risk appetite and investment horizon.

Q: Can I invest in energy without buying shares?
Absolutely. Consider green bonds, solar co-ops, or even battery leasing schemes.

Final thoughts

Energy isn’t just the next big thing—it’s the current big thing. And unlike meme stocks or crypto hype, it’s underpinned by something real: demand. Always-on, always-needed demand.

While you don’t need to throw your entire portfolio at it, ignoring the sector entirely could mean missing one of the defining economic shifts of our generation. And if you’re curious how the broker landscape is shaping that shift, this detailed energy broker analysis paints a clearer picture of who’s helping businesses save—and investors earn.