New South Wales is again ranked as the worst performing state for the supply of renewable electricity in the Climate Council's latest report card.

The report — Game on: The Australian Renewable Energy Race Heats Up — shows the state's proportion of renewable electricity fell from 7 per cent in 2013 to just 6 per cent in 2014.

Tasmania and South Australia were the best performing states.

The Climate Council's CEO Amanda McKenzie said NSW got a grade D because it failed to capitalise on renewable energy opportunities.

"At the moment the wind-planning laws have been hanging around for about five years and hasn't actually been resolved," she said.

"It's also about the Government providing funding for large-scale projects, which is happening say in Queensland and from the ACT, and then making sure the policy goals are right so that it indicates to the market that the state is stable and certain for investors."

Intention for NSW 'to be more like California'

Ms McKenzie however remained hopeful that NSW could lift its game.

"The Government has indicated there is an intention for NSW to be the answer to California, which is one of the places in the world that's doing the absolute best in renewable energy with the huge amount of innovation and new resources and that would capitalise on the potential that NSW has," she said.

"It's really about getting the policy settings right, updating those planning laws."

The Nyngan Solar Plant in western NSW is the largest in Australia. ( Supplied: AGL )

The Opposition's energy spokesman, Adam Searle, said the report showed the Baird Government had fallen out of the renewable energy race.

"The Baird Government claims it has a target of 20 per cent of our energy coming from renewable sources by 2020," Mr Searle said.

"We're a long way short of that. Even the Government's own claims today of having achieved a target of 14 per cent show that we are so far short. But it has no road map to get to 20 per cent."

The NSW Government issued a statement saying the state's share of renewables was 10.8 per cent in 2014 and 13.9 per cent in 2015, including all renewables.

It said the Government was strongly committed to growing its share of renewable energy and more than 35 per cent of renewable energy businesses had located their Australian headquarters in NSW, with the sector now supporting about 14,800 jobs across the state.

"NSW leads Australia in large-scale solar with three large-scale solar plants (totalling over 100 MW), including the Nyngan Solar Plant which is the largest in Australia," the statement said.

Possible for Australia to run on renewable energy: report

But Mr Searle believes NSW is falling behind in the solar sector.

"The Baird Government simply has no plan for solar in New South Wales with people with rooftop solar getting short-changed," he said.

"With the closure of the solar bonus scheme at end of this year, the Baird Government has taken no action to make sure that people with rooftop solar get a fair feed-in tariff."

It would be possible for Australia to generate all its electricity from renewable energy, according to the Climate Council's report.

"Computer simulation modelling of the hourly operation of the National Electricity Market by the University of New South Wales and independently by the Australian Energy Market Operator has shown that it would be technically and economically feasible to operate the electricity supply system reliably

on 100 per cent renewable energy technologies", it said.