For Australian households and small businesses grappling with persistently high utility costs in 2026, understanding the available support is crucial. The broad-based federal Energy Bills Relief Fund, which provided universal direct credits to electricity bills, largely concluded on 31 December 2025 for most households. This means that from January 2026 onwards, the automatic federal credits are no longer applied to electricity accounts, leading to an estimated 37 per cent rise in electricity costs in the 12 months to February 2026, according to the Australian Bureau of Statistics.

The government’s strategy has decisively pivoted from universal rebates to encouraging permanent household energy upgrades and targeted state and territory concessions. While the federal universal payments have ceased, significant opportunities remain for managing and reducing utility costs through state-specific programs and long-term energy efficiency investments.

The End of Universal Federal Energy Bill Relief

The National Energy Bill Relief Fund provided a total of AUD $300 to households in the 2024-25 financial year, followed by an additional AUD $150 (issued in two $75 instalments) for the first half of the 2025-26 financial year, ending on 31 December 2025. This means there is no new universal federal energy rebate confirmed for the 2026 calendar year for standard households.

Small businesses, however, saw some specific federal support continue, with a $150 rebate (two $75 quarterly instalments) for eligible businesses during the 2025-26 financial year. For most, this was applied automatically, but those in embedded networks may need to apply manually by 30 June 2026.

Understanding Your Current Energy Costs in 2026

Energy prices have continued to trend upward modestly across most states in 2026, with year-on-year increases ranging from 2.9% to 5.1%. The average quarterly electricity bill in Australia is approximately AUD $399, with gas bills near AUD $229. The average cost of electricity per kilowatt-hour (kWh) across Australia is around 33 cents per kWh.

The Australian Bureau of Statistics reported that electricity costs rose an estimated 37 per cent in the 12 months to February 2026, reflecting the removal of federal offsets.

Average quarterly electricity bills vary significantly by state:

State/TerritoryAverage Quarterly Electricity Bill (AUD)Average Annual Electricity Bill (AUD)
New South Wales$452$1,808 (est.)
Victoria$368$1,472 (est.)
Queensland$432$1,728 (est.)
South Australia$433$1,732 (est.)
Western Australia$274$1,096 (est.)
ACT$382.51$1,530 (est.)
Tasmania$446$1,784 (est.)

Note: Annual estimates are based on quarterly averages and typical household consumption, individual bills will vary.

State and Territory Energy Rebates & Concessions (2026)

While federal universal relief has ceased, all Australian states and territories continue to offer targeted energy concessions and rebates for eligible households, typically for concession card holders.

New South Wales (NSW)

  • Low Income Household Rebate: Eligible concession card holders can receive $285 per year off their electricity bill.
  • Family Energy Rebate: For those who received Family Tax Benefit in the 2024-25 financial year, applications are open until 15 June 2026. This offers $180 for non-concession card holders and $20 for concession card holders.
  • Energy Savings Scheme (ESS) & Peak Demand Reduction Scheme (PDRS): Provides discounts on energy efficiency retrofits. From 1 April 2026, PDRS offers streamlined Virtual Power Plant (VPP) incentives, with up to six years of incentives upfront for connecting an eligible battery to a VPP.

Victoria (VIC)

Victoria boasts robust energy efficiency and renewable energy incentives:

  • Victorian Energy Upgrades (VEU) Program: Offers point-of-sale discounts on a wide range of energy-saving products, including LED lighting, efficient heating/cooling systems, and insulation. From 1 October 2026, ceiling insulation rebates will expand to all eligible residential homes, offering a discount of approximately $1,500 (halving the typical $3,000 cost). For more on Victorian concessions, see our guide: Victorian Energy Concessions for Pensioners 2025 2026 in Australia: Complete Guide
  • Solar Victoria Rebates: For eligible owner-occupiers, rebates are available for solar panels (up to A$1,400) and heat pump or solar hot water systems (up to $1,000, or $1,400 for Australian-made products). These can be stacked with federal STCs and VEU discounts.

Queensland (QLD)

  • Electricity Rebate: Eligible concession card holders can receive up to $386.34 per year off their annual electricity bill.
  • Reticulated Natural Gas Rebate: A rebate of up to $89.70 is available for eligible natural gas customers.
  • Home Energy Emergency Assistance Scheme: Provides one-off assistance for households in short-term financial crisis.
  • Supercharged Solar for Renters rebate: Landlords in QLD can receive up to $3,500 for installing new solar systems at rental properties.

South Australia (SA)

South Australians receiving the State Government energy concession can access the South Australian Concessions Energy Discount Offer (SACEDO) with Origin Energy. This deal, running until at least 2029, provides eligible customers with:

  • 20 per cent off electricity usage and supply charges.
  • 15 per cent off gas usage and supply charges.
  • 40 per cent off the local price of a 45kg LPG cylinder for 12 months.

Western Australia (WA)

  • Energy Concession Extension Scheme (ECES): Includes an Energy Assistance Payment for concession card holders, a Dependent Child Rebate, and an Air Conditioning Rebate for specific regional towns.
  • WA Residential Battery Scheme: Provides a rebate of up to $1,300 for Synergy customers or $3,800 for Horizon Power customers (for a 10 kWh battery), plus interest-free loans up to $10,000 for eligible households. Mandatory VPP enrolment is required.
  • Distributed Energy Buyback Scheme (DEBS): Rewards households for exporting solar energy to the grid, with a peak rate of 10c/kWh (3pm–9pm) for Synergy customers.

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.
  • Home Energy Support rebate: Get up to $2,500 off the installation cost of a new solar system, reverse cycle heating and cooling, hot water heat pump, electric stove and oven, or ceiling insulation.

Northern Territory (NT)

  • NT Concession Scheme – Electricity: Eligible concession card holders can receive up to $1,200 per year in electricity concessions (capped at 8,000 kWh).
  • Medical Support Allowance: A $154 allowance for those exceeding the concession cap due to medical criteria.

Tasmania (TAS)

  • The Energy Saver Loan Scheme has now closed.
  • Feed-in tariffs are locked in at 8.782c/kWh until June 2026.

Federal Incentives for Energy-Efficient Upgrades (Ongoing)

Beyond direct bill relief, federal programs continue to support long-term energy savings through renewable energy and efficiency upgrades:

  • Small-scale Renewable Energy Scheme (STCs): This scheme provides an upfront discount on eligible rooftop solar PV systems. However, as of 1 January 2026, the deeming period for STCs reduced from 6 to 5 years, resulting in a 15-20% reduction in the upfront discount for new solar panels. It is advisable to act early in the year to maximise remaining certificate value.
  • Cheaper Home Batteries Program (Federal Battery Rebate): This federal program provides an upfront discount on eligible home battery systems. As of 1 May 2026, the rebate structure has shifted to a tiered model with reduced values. Rebates can be around $370 per kilowatt-hour (kWh) for eligible battery installations, potentially saving thousands. For example, CEC-approved systems like the EcoFlow PowerOcean are eligible. For more detailed information, refer to: Australian Home Battery Rebates Before May 1st 2026: Your State-by-State Eligibility & Value Guide
  • Household Energy Upgrades Fund: This fund offers low-interest loans to assist with energy efficiency upgrades.

Practical Strategies to Reduce Your Utility Bills in 2026

With the cessation of universal federal relief, proactive measures are more important than ever.

  1. Compare Energy Retailers: Use official, non-commercial comparison sites to find the best deal. These sites reflect current post-rebate pricing:

    • EnergyMadeEasy.gov.au: Covers NSW, Queensland, SA, ACT, and Tasmania.
    • Victorian Energy Compare: Specifically for Victoria. Switching retailers can save hundreds of dollars annually, and it does not interrupt your supply.

  2. Invest in Energy-Efficient Upgrades: Government incentives are designed to make these upgrades more accessible and 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. Learn more: Best Heat Pump Hot Water Systems in Australia 2026: Costs, Rebates & Buyer’s Guide
    • Insulation: Improving your home’s insulation can significantly reduce heating and cooling needs, which often account for 40% of an average bill. In Victoria, ceiling insulation rebates expanding from October 2026 can halve installation costs, saving approximately $1,500 upfront and over $400 a year on energy.
    • LED Lighting: Upgrading to LED lighting is a low-cost, high-impact change that uses less power and lasts longer.
    • Efficient Heating and Cooling: Replacing old gas heaters with reverse-cycle air conditioning can save thousands in upfront costs and reduce heating/cooling expenses by 30-40%.

  3. Harness Solar Power and Battery Storage: With the reduction in STC values and the shift in federal battery rebates, it’s still a sound long-term investment. Solar penetration and battery storage are beginning to moderate costs for households with these technologies installed. A home battery allows you to store solar energy for use during peak pricing periods, reducing reliance on the grid.

  4. Practice Load Shifting: Utilise energy-intensive appliances during off-peak hours or when your solar panels are generating power. Many states offer “Solar Sharer” windows with ultra-low or even free electricity during the day.

Bottom Line

The landscape of energy bill relief in Australia has fundamentally shifted in 2026. The era of universal federal rebates has concluded, placing a greater emphasis on targeted state-level concessions and proactive household investments in energy efficiency and renewable energy. While initial bills without the federal offset may feel higher, the long-term solution lies in leveraging available state and federal incentives for upgrades like solar, batteries, and heat pumps, alongside diligent energy retailer comparison. Australians must actively engage with the various programs available in their state and consider strategic home improvements to achieve sustainable reductions in their utility costs.