On 23 October 2015 it was announced that Palmer would be promoted to full Race Driver for the Renault Sport F1 Team in 2016, and became first driver from FIA Formula Two Championship alumni to progress to the Formula One team. He was joined by ex-McLaren driver Kevin Magnussen for Renault's return to the sport as a constructor, having bought the Lotus F1 Team over the winter. At his debut event in the Australian Grand Prix Palmer outqualified Magnussen to the 14th grid position, and after a good start finished the race 11th ahead of his teammate, just outside the point scoring positions.