Renewable energy could generate an additional 2 billion Australian dollars (1.3 billion US dollars) in revenue and 8,000 jobs in Australia's Northern Territory (NT), research has found.

A report by climate solutions research institute Beyond Zero Emissions (BZE) has found that Territorians could save money on electricity and transport if the government set an "ambitious" renewable energy target.

It called for a target of 10 gigawatts (GW) of renewable electricity generation by 2030 - 20 times higher than its current target.

The report recommended that the NT, which is also known as the Outback, become a recycling hub and that an undersea cable be built so that solar power could be exported to nearby Indonesia.

"The NT could establish itself as Australia's renewable energy-powered recycler, reusing the country's waste and saving it from landfill," it said.

Eytan Lenko, the chairman of BZE, told the Australian Broadcasting Corporation (ABC) that the NT government has overlooked the region's solar resources while focusing on drilling for gas.

"Our solution provides Territorians more than 8,000 new jobs in safer, healthier workplaces, and over two billion AUD in annual revenue," the report said.

"This means more affordable and secure places to live and work, with household bills dropping 80 per cent for transport and 30 per cent on electricity bills."

Of Australia's six states and two territories the NT is the biggest contributor per capita to emissions.