The sun, wind and other renewable sources will generate one-fifth of Australians' electricity by 2020 after the Federal Government and Opposition struck a deal to set this target.
The parties hope the agreement will also serve as a launch pad for fresh negotiations over plans for an emissions trading scheme to tackle climate change.
The Senate will pass legislation to set the renewable energy target that will also increase household power bills by about 80c a week, with the vote scheduled today.
It will also deliver a new rebate worth up to $7750 to install solar panels and see the proliferation of wind farms.
Climate Change Minister Penny Wong hailed the deal.
''The Renewable Energy Target will ensure that 20 per cent of Australia's electricity comes from renewable sources by 2020,'' Senator Wong said.
''In 10 years' time the amount of electricity coming from sources like solar, wind and geothermal will be around the same as all of Australia's current household electricity use."
Opposition spokesman on climate change Greg Hunt said the deal was a ''victory'' for common sense, the environment and renewable energy.
The deal included concessions on waste coal seam gas and the treatment of trade-exposed sectors such as aluminium.
Full coverage in today's Canberra Times
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