The lack of a nationally consistent renewable energy policy set by the federal government is damaging investor confidence in the sector, the Climate Council says.
It has also accused the federal government of attacking states supporting renewable energy.
In a report released on Monday, the council ranked South Australia the best jurisdiction in the country in relation to using renewable energy, with the Northern Territory in last place.
The Climate Council's Greg Bourne said the best way to get energy prices down was through renewable energy.
"Without a consistent and stable policy environment the federal government is undermining the future pipeline of Australian projects," Mr Bourne said on Monday.
South Australia generates more than half of its electricity from wind and solar energy, aiming for 100 per cent in the 2030s.
The Climate Council ranked the ACT as the second-best jurisdiction, with the bush capital on track to offset 100 per cent of emissions with renewable energy by 2020.
Tasmania took out third place.
Victoria and Queensland, ranked fourth and fifth respectively, and would still need to work hard to catch up to the top three, the Climate Council argued.
But NSW, WA and the NT ranked last in that order, with the report saying they were still at the starting blocks.
State and territory energy ministers agreed to adopt a national hydrogen energy strategy at a meeting in Perth on Friday, with the federal government to pump $370 million into a fund aimed at building the industry.
Australian Associated Press