The ACT is set to be powered by 100 per cent renewable electricity within the next four years, but the move comes at a $300-per-year hike to Canberra residents.

The ACT Government had already committed to a 90 per cent target by 2020 and an 100 per cent target by 2025.

But Environment Minister Simon Corbell announced the Government would cut that wait almost in half and lead the country in the use of 100 per cent green electricity by 2020.

The move comes at a cost, with the Government estimating that households will pay an extra $5.50 per week or around $300 extra per year on their electricity bill when compared with using no renewable energy.

It would mean an increase for households of 50 cents per week when compared with the old 90 per cent target.

Mr Corbell said the cost to households could be largely offset by energy efficiency measures.

"The evidence is very clear that these costs are manageable for households," he said.

He said the increased target for the ACT would take advantage of the current competitive prices for green energy and create jobs in the local economy.

"As leaders in the renewable energy field, the ACT is reaping the environmental and economic benefits of decarbonisation," he said.

"So far through our 90 per cent renewable energy target the Government has secured over $400 million worth of investment into the ACT economy.

"Being powered by 100 per cent renewables by 2020 places Canberra at the lead, both in Australia and internationally, of cities taking effective action on climate change."