2025 Australia Electricity Prices Are Rising: How to Cut Your Energy Bill Fast (State-by-State Guide)

TL;DR Summary

• Electricity prices in Australia 2025 are rising due to higher wholesale costs and network upgrades.
• You can still cut your bill quickly by switching plans, shifting usage to off-peak, and improving efficiency.
• Each state and territory has different tariffs, rebates and levels of retailer competition.
• Comparing electricity plans once a year can save many households $150–$400 annually.
• Solar, heat pump hot water and better insulation give the biggest long-term savings for owners.

Why Electricity Prices Matter in Australia 2025

Power bills remain one of the biggest ongoing costs for Australian households. In 2025, electricity prices are under pressure from:

• Higher wholesale generation prices and fuel costs
• Network upgrades and reliability investments
• The transition from coal to renewable energy and storage

The impact is not the same everywhere. Prices vary by state, by network area and even by street. That is why it is important to:

• Know your local rates and charges
• Compare plans regularly
• Use any state or federal rebates you are eligible for

2025 State-by-State Electricity Comparison

Indicative residential rates only (single rate or general usage). Actual prices depend on your retailer, plan and network area.

Who Each Option Is Best For (Decision Guide)

1. Switching Electricity Retailer / Plan

Best for:

• NSW, VIC, QLD and SA customers with multiple retailers available
• Renters who cannot install solar
• Anyone who has not checked their plan in the last 12 months

Pros:

• Fast savings – often within the next billing cycle
• No physical changes to your home
• Usually no connection fee for switching retailers

Cons:

• Can be confusing to compare different tariff structures
• Some “discounts” depend on conditions (e.g. direct debit, e-billing)

2. Solar Panels (With or Without Battery)

Best for:

• Homeowners planning to stay in the property for at least 5–7 years
• Households with high daytime usage (work from home, retirees, families)
• Sunny locations: QLD, NSW, SA, parts of WA

Pros:

• Large long-term bill reductions
• Can protect against future price rises

Cons:

• High upfront cost, even after rebates
• Batteries usually take longer to pay back than panels alone

3. Load Shifting and Time-of-Use Tariffs

Best for:

• Homes on time-of-use tariffs with cheaper off-peak periods
• Households with flexible routines or smart appliances
• Homes with EVs, dishwashers, or electric hot water

Pros:

• No hardware cost if you already have a smart meter
• Good for renters and apartments

Cons:

• Requires behaviour change and routine adjustment
• Using too much in peak times can cancel out savings

4. Energy-Efficient Appliances

Best for:

• Homes with old fridges, electric hot water, or resistive heaters
• Households with high heating/cooling or hot water costs

High-impact upgrades include:

• Heat pump hot water system
• High-efficiency reverse-cycle air conditioner (for heating and cooling)
• Modern fridge/freezer with good energy rating
• Induction cooktop instead of old electric

5. Government Rebates and Concessions

Best for:

• Concession card holders
• Pensioners and seniors
• Low-income households and families under financial stress

These can provide ongoing bill discounts or one-off energy relief payments, depending on the state.

Step-by-Step: How to Cut Your Electricity Bill Fast

Step 1: Find Your Current Rates

• Open your latest power bill.
• Note the daily supply charge (c/day) and usage rate (c/kWh).
• Check if you are on single rate, time-of-use, controlled load, or demand tariff.

Step 2: Compare Plans (10–15 Minutes)

• For NSW, QLD, SA, TAS, ACT and some regional areas: use the Energy Made Easy government comparison website.
• For Victoria: use Victorian Energy Compare.
• Enter your bill details or upload a PDF if the site allows.
• Compare:
  • Total estimated yearly cost, not just discounts
  • Fixed supply charge vs usage charge
  • Any conditional discounts or lock-in contracts
• Choose a plan with:
  • Lower estimated annual cost
  • No exit fees if possible
  • Simple, easy-to-understand tariff structure

Step 3: Shift Heavy Usage to Cheaper Times

If you have a time-of-use meter:

• Run dishwasher and washing machine after 10pm or on weekends if off-peak is cheaper.
• Charge EVs overnight, not in the evening peak.
• Use delay timers on appliances where possible.

Step 4: Quick Low-Cost Efficiency Wins

• Set heating to around 20°C in winter and cooling to around 25–26°C in summer.
• Close curtains at night in winter and during hot afternoons in summer.
• Use fans before air-conditioning where possible.
• Seal obvious drafts around doors and windows.
• Switch off unused devices at the wall (standby power still costs money).

Step 5: Optimise Solar If You Have It

• Run high-usage appliances during the middle of the day while the sun is out.
• Set pool pumps and hot water timers to operate mainly in daylight hours.
• Review your solar feed-in tariff – sometimes a slightly lower FiT but cheaper usage rate is better overall.

Step 6: Plan Larger Upgrades

• Get quotes for solar panels if you own your home and plan to stay long term.
• Check eligibility for heat pump hot water and appliance upgrade rebates.
• Consider ceiling insulation upgrades if your home is poorly insulated.

Cost, Fees and Tax Considerations

• Plan switching fees: Most modern residential plans have no exit fees, but always check your existing contract.
• Solar system cost: Roughly $3,000–$7,000 after federal incentives for a typical home system (actual costs vary by size and installer).
• Battery cost: Often $6,000–$12,000 or more. Payback can be long; it suits some households but not others.
• Heat pump hot water: Commonly $1,000–$3,000 after rebates, depending on brand and installation complexity.
• Annual savings examples (rough guide only):
  • Switching retailer or plan: about $150–$400 per year for many households.
  • Off-peak shifting: possibly $100–$250 per year if you move major loads.
  • Well-sized solar system: can reduce grid usage significantly, depending on system size and usage patterns.
• Tax considerations: For most households, electricity costs are private living expenses and not tax-deductible. A portion may be deductible if you legitimately work from home; check ATO guidance or get advice from a tax professional.

FAQ – Australia 2025 Electricity Bills

Why are electricity prices rising in Australia in 2025?

Prices are rising due to higher wholesale costs, investment in networks and the energy transition from older coal plants to renewables and storage. The impact varies by state and region.

How much can I save by switching electricity provider in Australia?

Many households can save roughly $150–$400 per year by switching from a high-priced standing offer to a competitive market offer, depending on usage and location.

Is it worth getting solar panels in Australia in 2025?

For many homeowners who use a fair amount of daytime power and plan to stay in the property, solar can still provide good long-term savings, even with lower feed-in tariffs.

How do I compare electricity plans in Australia 2025?

Use government comparison sites (Energy Made Easy or Victorian Energy Compare), enter your bill details, and focus on the total estimated annual cost rather than just discounts.

What is the cheapest time of day to use electricity in Australia?

On time-of-use tariffs, off-peak periods are usually late at night and early morning. The exact times and prices depend on your retailer and network. Check your plan’s fact sheet.

What rebates are available for energy bills and solar in Australia?

Each state and territory offers different concessions, rebates and solar or appliance incentives. Common support includes energy bill concessions, one-off relief payments and upgrade rebates.

Do I need a battery with my solar to save money?

A battery is not essential for savings. Many households find panels alone provide strong bill reductions. Batteries can help further, but payback periods are often longer and depend on your usage.

Can I get a tax deduction for my home electricity bill in Australia?

Normally, home electricity is not deductible. However, if you legitimately work from home, a portion of energy costs may be claimable under ATO rules. Check official guidance or speak to a tax adviser.

Sources and Official References (Australia)

• Australian Energy Regulator – Energy Made Easy (plan comparison and fact sheets)
• Victorian Government – Victorian Energy Compare
• State and Territory Government energy rebate and concession pages
• Clean Energy Regulator – information on solar incentives and STCs
• Australian Taxation Office (ATO) – work from home and deduction rules

Important Disclaimer

This article is for general information only and is not financial advice, energy advice or tax advice. It does not take into account your personal circumstances. Electricity prices, rebates and rules change regularly. Before making decisions, please check official government resources, your plan documents, and consider speaking to a licensed financial adviser, energy consultant or tax professional.