For Australians grappling with rising household expenses, understanding current energy bill relief options is crucial. While the highly publicised federal Energy Bill Relief Fund concluded on 31 December 2025, direct bill credits are no longer automatically appearing on electricity accounts. However, this does not mean the end of all government support. In 2026, the focus has shifted towards long-term energy independence through federal incentives for energy-efficient upgrades and a range of ongoing state and territory-specific concessions. This guide outlines what’s currently available and how you can proactively reduce your energy bills.
The End of Federal Energy Bill Relief (Direct Credits)
The Australian Government’s Energy Bill Relief Fund, which provided $300 in FY2024-25 and a further $150 (delivered in two $75 quarterly instalments) from 1 July 2025, concluded on 31 December 2025. Treasurer Jim Chalmers confirmed that this temporary cost-of-living measure would not be extended into 2026. This means households are now receiving fully unsubsidised bills, a stark change for many who became accustomed to the automatic credits. The government’s strategy has pivoted from “blanket rebates” to encouraging permanent household energy upgrades to address the root causes of high energy costs.
Ongoing Federal Incentives for Energy Upgrades (2026)
Despite the cessation of direct bill relief, significant federal programs remain active in 2026, offering substantial upfront discounts for energy-efficient home improvements:
1. Small-scale Renewable Energy Scheme (STCs) for Solar Panels
The federal Small-scale Renewable Energy Scheme (SRES) continues to provide an upfront discount on new solar panel installations across Australia. This is delivered through Small-scale Technology Certificates (STCs), which your accredited installer manages on your behalf, reducing the final price you pay. The value of STCs depends on your system size and location, generally equating to approximately $400–$600 per kilowatt (kW) of solar capacity installed. For a common 6.6 kW residential solar system, this can translate to an upfront reduction of around $2,000.
2. Cheaper Home Batteries Program
The federal Cheaper Home Batteries Program (also part of the SRES) makes home battery storage more affordable. This program provides a discount of around 30% on eligible systems (5 kWh to 100 kWh) and is applied directly to your quote by the installer.
Important Changes from 1 May 2026: The rebate structure for home batteries has become tiered and reduced. While the program is not ending, the value of the rebate per kilowatt-hour (kWh) changes:
| Battery Capacity | Rebate Rate (approx. per kWh from May 2026) |
|---|---|
| 0–14 kWh | ~$258 per kWh |
| 15–28 kWh | ~$155 per kWh |
| 29–50 kWh | ~$39 per kWh |
For example, a 10 kWh battery may receive approximately $2,400 in rebate, while a 14 kWh battery could attract around $3,400. The rebate value will continue to decrease every six months until 2030, making earlier installation more financially advantageous.
State and Territory Energy Rebates and Concessions (2026)
Beyond federal programs, various state and territory governments offer targeted rebates, concessions, and incentives. Eligibility often depends on your location, income, and whether you hold an eligible concession card.
New South Wales (NSW)
NSW continues to offer targeted support:
- Family Energy Rebate (2025/2026): $180 for non-concession card holders, $20 for concession card holders. Applications are open via Service NSW.
- Low Income Household Rebate: Provides $285 per year for eligible concession card holders.
- Heat Pump Hot Water Systems: Discounts are available via the NSW Energy Savings Scheme (ESS), applied upfront by accredited installers.
- While there is no broad state-based solar panel rebate for detached homes, NSW supports Virtual Power Plant (VPP) participation and offers Solar for Apartment Residents grants.
Victoria (VIC)
Victoria has robust energy upgrade programs:
- Victorian Energy Upgrades (VEU) Program: Offers upfront discounts on a wide range of energy-saving products, including LED lighting, heating and cooling systems, and insulation. For ceiling insulation, a discount of approximately $1,500 (halving the typical $3,000 cost) is available for eligible households from 1 October 2026.
- Heat Pump Hot Water Rebate: Through the VEU program, eligible households can receive up to $1,000 off the purchase price of a heat pump or solar hot water system (50% of purchase price, capped at $1,000). This can often be stacked with VEU discounts.
- Solar Homes Program: Eligible owner-occupiers with a combined household taxable income under $210,000 can access a rebate of up to $1,400 for solar panel installation. Solar Victoria also offers a separate hot water rebate of up to $1,400.
- Mandatory Electric Hot Water: From March 2027, Victorian homes must replace failed gas hot water systems with electric alternatives.
Queensland (QLD)
Queensland offers various incentives, with heat pump hot water systems being particularly cost-effective due to installer density and active state rebates.
South Australia (SA)
SA is a leader in energy productivity and VPP integration:
- Retailer Energy Productivity Scheme (REPS): This scheme obligates energy retailers to fund or discount approved energy-saving upgrades, from insulation to EV and battery demand response. Priority Group households (concession card holders) often receive free upgrades.
- SA Concessions Energy Discount Offer (SACEDO): Eligible concession card holders can receive 20% off electricity usage and supply and 15% off gas usage and supply with Origin Energy, running until at least 2029.
- Joining an approved Virtual Power Plant (VPP) can provide additional cash rebates or significant ongoing tariff discounts.
Western Australia (WA)
WA focuses on smart energy management:
- Distributed Energy Buyback Scheme (DEBS): Rewards households for exporting solar energy during late-afternoon peak periods.
- Active rebates for heat pump hot water systems are also available.
Tasmania (TAS)
Tasmania provides several concessions and loan schemes:
- Annual Electricity Concession: Provides a bill discount of $1.76866 per day (approximately $645.56 per year) for eligible low-income concession card holders from 1 July 2025.
- Heating Allowance: $56 per year ($28 paid twice) for Pensioner Concession Card holders.
- Energy Saver Loan Scheme: Offers interest-free loans up to $10,000 for energy efficiency upgrades.
Australian Capital Territory (ACT)
- Sustainable Household Scheme: Offers low-interest loans up to $15,000 for products like EV chargers, induction cooktops, and ceiling insulation.
- An Electricity, Gas and Water Rebate is also available.
Northern Territory (NT)
- NT Concession Scheme – electricity: Provides up to $1,200 per year (capped at 8,000 kWh) for eligible concession card holders.
- The NT Home and Business Battery Scheme is currently closed to new grants, but residents can still access the federal Cheaper Home Batteries Program (STCs).
Practical Strategies to Reduce Your Energy Bills in 2026
With direct federal bill relief gone, focusing on long-term energy efficiency and smarter consumption is paramount.
1. Compare Energy Retailers Regularly
Electricity prices vary significantly by state and retailer. South Australians typically face the highest rates, averaging around 43.4 cents per kWh with SA Power Networks, while Victorians and Tasmanians generally see lower rates, with CitiPower at 26.1 cents per kWh and TasNetworks at 28.0 cents per kWh respectively.
“The average cost of electricity, measured in kilowatt hours (kWh), varies between each state and territory in Australia. You can expect to pay around 33 cents per kWh on average, with South Australians facing the highest rates.”
Tools like Energy Made Easy (for NSW, QLD, SA, TAS, ACT) and Victorian Energy Compare are free government services that allow you to compare plans and potentially save hundreds of dollars annually by switching. Don’t assume loyalty pays; actively compare at least once a year.
2. Invest in Energy-Efficient Upgrades
Government incentives are designed to make these upgrades more accessible. Prioritise improvements that offer significant, ongoing savings:
- Heat Pump Hot Water Systems: These are 3-4 times more efficient than traditional electric storage systems. The national average installed cost in April 2026 is $4,527 (including federal STCs), but can drop to $2,667 - $4,073 after state rebates in Victoria or NSW. Annual running costs are typically $150-$300, compared to $600-$900 for electric storage. Consider models like the Rheem 270L Heat Pump or Reclaim Energy 315L Heat Pump.
- For a detailed analysis, see our guide: Best Heat Pump Hot Water Systems in Australia 2026: Costs, Rebates & Buyer’s Guide
- Solar Panels and Home Batteries: Generating your own electricity and storing it for evening use drastically reduces reliance on grid power. Even with the adjusted battery rebate from May 2026, the long-term savings are substantial. For a 6.6kW solar system, the federal STC discount is approximately $1,400 in Melbourne.
- Insulation and Draught Sealing: Proper insulation can cut heating and cooling costs by a significant margin. Victorian households can benefit from the VEU discount on ceiling insulation, reducing the typical $3,000 cost to around $1,500 from October 2026.
- Energy-Efficient Appliances: Replace old, inefficient appliances with new, high-star-rated models. Look for refrigerators, washing machines, and air conditioners with strong energy ratings.
3. Optimise Your Energy Consumption
- Understand Time-of-Use (TOU) Tariffs: Many retailers offer cheaper electricity during off-peak hours (e.g., overnight or during the “solar sponge” in the middle of the day). Shift high-energy activities like running dishwashers, washing machines, or charging EVs to these periods.
- Monitor Usage: Smart meters and energy monitoring apps can provide real-time data, helping you identify energy vampires and adjust habits.
- Heating and Cooling Management: Set thermostats efficiently (e.g., 20°C in winter, 24°C in summer), use ceiling fans, and ensure your home is well-sealed.
Bottom Line
While the direct federal Energy Bill Relief Fund has concluded for 2026, Australian households are not without options to manage and reduce their utility costs. The shift in government policy encourages long-term solutions through energy-efficient upgrades, supported by significant federal and state-level incentives. Proactively comparing energy plans, investing in technologies like solar, batteries, and heat pump hot water systems, and adopting smarter consumption habits are the most effective strategies for securing genuine, lasting relief from high energy bills in 2026 and beyond. Evaluate your household’s needs, research the specific state and federal rebates you qualify for, and consult with accredited installers to make informed decisions that will positively impact your budget for years to come.