For Australian households and small businesses seeking clarity on energy bill support in 2026, the Australian Government’s Energy Bill Relief Fund provides up to $150 in direct electricity bill rebates. This federal support, an extension of the substantial 2024-25 program, is primarily delivered automatically as two $75 credits on electricity bills between 1 July 2025 and 31 December 2025. While federal relief provides a baseline, significant additional concessions and energy efficiency incentives are available through state and territory governments.
Federal Energy Bill Relief Fund 2026: What You Need to Know
The Australian Government has extended its Energy Bill Relief Fund with an additional $1.8 billion for the 2025-26 financial year, building on the $3.5 billion delivered in 2024-25. This initiative is designed to alleviate cost-of-living pressures by directly reducing electricity bills.
For Households:
Eligible Australian households connected to the grid will receive up to $150 in energy bill rebates. This relief is typically applied automatically to electricity accounts in two $75 quarterly instalments from 1 July 2025 to the end of 2025. Most residential customers do not need to take any action to receive these credits. The credit will appear on your bill, often labelled as ‘Australian Government Energy Bill Relief’.
For Small Businesses:
Eligible small businesses can also receive up to $150 in electricity bill rebates, applied as two $75 credits from 1 July 2025. To qualify, businesses generally need an active ABN, a separately metered business electricity account, and annual electricity consumption below specific state thresholds:
| State | Annual Electricity Consumption Threshold |
|---|---|
| New South Wales | 100 MWh |
| Queensland | 100 MWh |
| South Australia | 160 MWh |
| Victoria | 40 MWh |
Most eligible small businesses will receive these rebates automatically.
Embedded Network Customers:
If you reside in an embedded network (e.g., an apartment building, caravan park, or retirement village where electricity is supplied by an owner or operator rather than a retailer), you may need to apply manually for your federal energy bill relief through your relevant state or territory government portal. Ensure you check your state’s specific application process.
State and Territory Energy Concessions & Rebates 2026
Beyond the federal scheme, each state and territory offers its own suite of concessions, rebates, and grants. These are primarily targeted at concession card holders, low-income households, and those with specific medical needs.
New South Wales (NSW)
NSW residents can access several ongoing schemes:
- Low Income Household Rebate: Up to $285 per year for retail customers, or $313.50 for embedded network customers, credited quarterly.
- Seniors Energy Rebate: A $200 per household, per financial year, for self-funded retirees holding a valid Commonwealth Seniors Health Care Card.
- Medical Energy Rebate & Life Support Rebate: For eligible concession card holders with specific medical needs or approved life support equipment.
- NSW Gas Rebate: Up to $110 per year for concession card holders with natural gas accounts.
- Energy Savings Scheme (ESS) & Peak Demand Reduction Scheme (PDRS): These programs provide discounts on energy efficiency retrofits. From 1 April 2026, the PDRS has streamlined Virtual Power Plant (VPP) incentives, offering up to six years of incentives upfront for connecting an eligible battery to a VPP.
It’s important to note that NSW does not offer a broad, standalone state rebate for standard rooftop solar on detached homes; the primary upfront incentive for solar panels comes from the federal Small-scale Renewable Energy Scheme (STCs).
Victoria (VIC)
Victoria offers a comprehensive range of concessions and energy efficiency incentives:
- Annual Electricity Concession: A 17.5% discount on electricity usage and supply charges (after retailer discounts/solar credits) for eligible Pensioner Concession Card, Health Care Card, or DVA Gold Card holders.
- Winter Gas Concession: A 17.5% discount on gas usage and supply charges during May to October each year.
- Medical Cooling Concession: Provides a 17.5% discount off summer electricity bills (November to April) for concession households with eligible medical conditions.
- Life Support Concession: Offers a daily discount based on the type of life support equipment used.
- Excess Electricity/Gas Concessions: Continue the 17.5% discount for concession households with very high annual electricity costs (over $3,895.13) or gas costs (over $2,499.14) during the winter period.
- Utility Relief Grant Scheme (URGS): Up to $650 per utility every two years for households experiencing temporary financial hardship.
- Non-Mains Energy Concession: An annual rebate of between $57-$650 for eligible concession card holders relying on non-mains energy sources like firewood or LPG.
- Victorian Energy Upgrades (VEU) Program: Offers point-of-sale discounts on a wide array of energy-saving products. From 1 October 2026, ceiling insulation rebates will expand to all eligible residential homes, potentially offering a discount of approximately $1,500 (halving the typical $3,000 cost).
- Solar Victoria Rebates: For eligible owner-occupiers, rebates are available for solar panels (up to $1,400) and heat pump or solar hot water systems (up to $1,000, or $1,400 for Australian-made products).
The Victorian Government anticipates providing around $566 million in concessions in 2026-27, saving eligible households an average of around $629 annually.
Queensland (QLD)
Beyond the federal Energy Bill Relief Fund, Queensland’s primary focus for energy support in 2026 includes ongoing initiatives for battery support and solar for rentals. While specific new state-level electricity bill relief beyond the federal scheme for 2026 has not been broadly announced, existing concessions for eligible cardholders typically remain. Queensland’s competitive retail market helps keep rates among the lowest nationally.
South Australia (SA)
South Australians have access to several targeted programs:
- Energy Bill Concession: Up to $281.78 per year, indexed annually, for eligible low-income households.
- Medical Heating and Cooling Concession: For eligible low-income households with medical conditions requiring heating or cooling.
- South Australian Concessions Energy Discount Offer (SACEDO): A new agreement with Origin Energy, available until at least 2029, provides eligible concession card holders with 20% off electricity usage and supply charges, 15% off gas usage and supply charges, and 40% off a 45kg LPG cylinder for 12 months.
- Retailer Energy Productivity Scheme (REPS): This scheme provides free or discounted energy efficiency upgrades (e.g., insulation, hot water systems, EV and battery demand response) to help reduce long-term energy consumption. Priority households may receive these at no cost.
Western Australia (WA)
Western Australia primarily relies on the federal Energy Bill Relief Fund. Due to the state’s regulated energy market, with Synergy as the monopoly supplier for most residential customers, there is limited retail choice and fewer state-specific rebates compared to the NEM states. The renewable share of generation in the Wholesale Electricity Market (WEM) increased to 46.1% in Q1 2026.
Tasmania (TAS)
Tasmanian households and small businesses can access:
- National Energy Bill Relief: The federal $150 (2 x $75 credits) in 2025-26.
- Annual Electricity Concession: Provides a bill discount of $1.76866 per day for retail customers (approximately $645.56 annually) for eligible low-income concession card holders.
- Heating Allowance: $56 per year, paid in two $28 instalments, for Pensioner Concession Card holders.
- Medical Cooling or Heating Concession: Approximately $513.70 per year for concession households with medical needs.
- Electric Vehicle Rebates: Tasmania offers a $2,000 rebate for eligible new battery electric vehicles or second-hand EVs that are new to Tasmania.
Australian Capital Territory (ACT)
The ACT focuses on sustainability and long-term energy savings:
- Home Energy Support Rebate: Up to $2,500 off the installation cost of a new solar system, reverse cycle heating and cooling, hot water heat pump, electric stove/oven, or ceiling insulation.
- Sustainable Household Scheme Loans: Provides low-interest (3%) loans of up to $15,000 for a range of sustainable upgrades, including household battery storage, home energy upgrades, and electric vehicles.
- Energy Efficiency Improvement Scheme: Can provide up to $300 in rebates for energy efficiency improvements from participating retailers.
Northern Territory (NT)
Territorians can benefit from:
- NT Concession Scheme: Provides up to $1,200 per year in electricity concessions (covering up to 8,000 kWh) for eligible concession card holders.
- Federal STC Rebate: The NT falls in STC Zone 1, attracting the highest federal solar rebate in Australia, around $2,800-$3,200 for a 6.6kW system.
- NT Home and Business Battery Scheme: This scheme has reached its funding allocation and is currently closed to new grants. However, federal battery rebates (through STCs) are still available for eligible home batteries.
Beyond Rebates: Strategies for Long-Term Savings in 2026
While government relief provides a welcome buffer, average electricity prices in Australia continue to be a concern. South Australia remains the most expensive state for electricity, averaging $1,580/year, while the ACT is the cheapest at $1,310/year for a typical household. The national average annual bill is approximately $1,424. Wholesale electricity prices saw a 12% year-on-year drop in Q1 2026, averaging $73/MWh across the NEM, with Victoria experiencing the steepest fall. However, South Australia saw an increase to $88/MWh.
To effectively manage your energy bills in the long term, consider these strategies:
1. Energy Efficiency Upgrades
Investing in energy-efficient appliances and home improvements can significantly reduce consumption. Look for products covered by state-based schemes like Victoria’s VEU program, which provides point-of-sale discounts on items such as LED lighting and efficient heating/cooling systems. Upgrading insulation is also a highly effective measure, with Victoria’s ceiling insulation rebate expanding in October 2026. For more detailed strategies, read our guide on How to Cut Your Electricity Bill This Winter in Australia 2026: Strategies After Federal Rebates End.
2. Solar Panels and Batteries
Solar remains a powerful tool for reducing electricity bills. A standard 6.6kW solar system in Australia costs between $5,000 - $8,500 for quality components and installation after federal rebates. A larger 10kW system typically ranges from $8,000 - $10,500.
The federal Small-scale Technology Certificate (STC) rebate, which acts as an upfront discount, saw a 15-20% reduction in value on 1 January 2026 due to a shorter deeming period. It will decrease again in 2027. Therefore, acting sooner rather than later can maximise your savings. When considering solar, it’s crucial to choose a reputable installer. Refer to our guide: How to Choose a Solar Installer in Australia 2026: Accreditation, Warranties & Avoiding Scams.
Adding a home battery can further enhance savings by allowing you to store excess solar generation for use during peak times or at night. The federal “Cheaper Home Batteries” program shifted to a tiered rebate system from 1 May 2026, offering rebates potentially around $370 per kilowatt-hour (kWh) for eligible systems. By the end of March 2026, cumulative residential battery capacity in Australia reached 6,716 MWh.
3. Heat Pump Hot Water Systems
Heat pump hot water systems are up to three times more efficient than traditional electric or gas systems. Several state rebates support their installation, such as Victoria’s Solar Victoria rebate (up to $1,000 or $1,400 for Australian-made systems) and NSW’s ESS discounts. For more information, see our guide on Best Heat Pump Hot Water Systems in Australia 2026: Costs, Rebates & Buyer’s Guide.
4. Review Your Energy Plan
Regularly compare electricity and gas plans from different retailers. Even with concessions, a competitive market offer can significantly reduce your overall costs. The Australian Energy Regulator (AER) and state-specific comparison websites like Victorian Energy Compare are valuable tools.
Accessing Your Energy Bill Relief
For most eligible households and small businesses, the federal $150 energy bill relief will be automatically applied to your electricity account by your retailer. You should see this credit on your bill. If you believe you are eligible but have not received it, contact your electricity retailer in the first instance. For state-specific concessions, you typically need to hold an eligible concession card and may need to apply directly through your state government’s energy or human services department. For comprehensive information on concession card eligibility, refer to our guide: Centrelink Energy Rebates Australia 2026: Your Guide to Expanded Eligibility & Automatic Bill Relief.
Bottom Line
While the federal Energy Bill Relief Fund offers a welcome $150 credit to most Australian households and eligible small businesses in the latter half of 2025, it is crucial to understand that this is a temporary measure. The real long-term savings come from actively engaging with state-specific concessions and investing in energy efficiency upgrades and renewable energy technologies. Take advantage of every available rebate and concession, and critically evaluate your energy consumption and existing contracts to build a sustainable strategy for managing your energy costs in 2026 and beyond.