Soaring electricity prices in 2026 mean that upgrading to energy-efficient home appliances is no longer a luxury, but a strategic move to significantly reduce your annual household expenses. Australians can save hundreds, potentially over $1,000 annually, by choosing models with high Energy Star Ratings and leveraging available state rebates.
From July 1, 2026, Default Market Offer (DMO) electricity prices are set to decrease in New South Wales (by 3.4% to 5.0%) and South East Queensland (by 7.2%), offering some relief. However, South Australia will see a modest increase of 1.4%. In Victoria, the Default Offer (VDO) rates for 2025-26 show typical flat rates ranging from $0.2733/kWh to $0.3009/kWh depending on the distribution zone, with peak rates considerably higher. Given these figures, an average electricity cost of $0.30 to $0.35 per kilowatt-hour (kWh) remains a realistic benchmark for calculating running costs across much of Australia.
Choosing appliances with higher Energy Star Ratings is crucial. Australia’s Energy Rating Label is mandatory, with super-efficient models now reaching up to 10 stars, beyond the traditional 6-star system. Each additional star can reduce an appliance’s energy consumption by 10-30%. Always compare star ratings between appliances of similar size and capacity for an accurate assessment.
Appliances That Deliver the Biggest Savings
Certain appliances are notorious energy guzzlers, making them prime candidates for an energy-efficient upgrade. These typically include hot water systems, heating and cooling, refrigerators, and clothes dryers.
1. Clothes Dryers: The Heat Pump Revolution
Traditional vented and condenser dryers are among the most energy-hungry appliances. Heat pump dryers, however, represent a significant leap in efficiency by recycling hot air in a closed loop, operating at lower temperatures, and being much gentler on fabrics.
“Heat pump dryers use 75% less electricity than vented models—saving the average Aussie household $150+ per year in running costs.”
While heat pump dryers have a higher upfront cost, their long-term savings are substantial. A vented dryer can consume 3-5 kWh per cycle, costing $1-$2 per load, while a heat pump dryer uses only 1.0-2.5 kWh per cycle, potentially halving your drying costs. Over a year, this can translate to annual savings of $120 to $150 or more.
| Model (2026) | Capacity | Energy Rating | Approx. Price (AUD) | Est. Annual Running Cost (AUD)* | Key Feature |
|---|---|---|---|---|---|
| Haier 8kg Heat Pump Dryer | 8kg | 7-8 Stars | $708 - $899 | $70 - $120 | Budget-friendly |
| Electrolux 700 Series 8kg Heat Pump Dryer | 8kg | 7-8 Stars | $1,199 | $70 - $120 | Best overall |
| Bosch 9kg Heat Pump Dryer | 9kg | 8-9 Stars | $1,399 | $60 - $100 | All-rounder, popular |
| Samsung Bespoke 9kg Smart Heat Pump Dryer | 9kg | 9 Stars | $1,431 - $1,999 | $50 - $90 | Smart features, highest rating |
*Estimated annual running costs are based on 200 cycles/year at an average electricity rate of $0.30/kWh.
2. Refrigerators and Freezers: Always-On Savings
Refrigerators run 24/7, making their efficiency critical. They can account for a significant portion of your energy bill, with average annual usage ranging from 100-800 kWh. Upgrading from an older, inefficient model can save you around $50 per year for a 400-litre fridge.
Look for models with inverter technology for consistent temperature maintenance and lower energy spikes.
| Model (2026) | Capacity | Energy Rating | Approx. Price (AUD) | Est. Annual Running Cost (AUD)* |
|---|---|---|---|---|
| Haier 433L Refrigerator Freezer | 433L | 8 Stars | ~$1,000 - $1,500 | $50 - $80 |
| Hisense Eco Vision Bottom Mount Refrigerator | 417L | 8 Stars | ~$900 - $1,300 | $50 - $80 |
*Estimated annual running costs based on typical usage for highly efficient models at $0.30/kWh.
3. Hot Water Systems: Heat Pump Efficiency
Water heating typically accounts for around 25% of household energy use, making it the second-largest energy drain. Heat pump hot water systems are significantly more efficient than traditional electric storage or gas systems.
Rebates are a major incentive here. In Victoria, the Victorian Energy Upgrades (VEU) program offers upfront rebates for heat pump hot water systems, which can be stacked with Solar Victoria rebates (up to $1,400 for Victorian-made units) and Federal STCs (up to $3,000), potentially leading to a $0 upfront cost in many cases. NSW also includes heat pump hot water systems in its Home Energy Saver Program, offering zero-interest loans up to $15,000 and a $4,000 discount for lower-income households.
For more details on available support, consult our guide: Australian Energy Rebates in 2026: Your State-by-State Guide After Federal Relief Ends.
4. Air Conditioners: Smart Inverter Systems
Heating and cooling can consume up to 40% of an Australian home’s total energy. Investing in a high-efficiency reverse-cycle inverter air conditioner is paramount. Inverter technology allows the unit to adjust its output to maintain a consistent temperature, rather than constantly cycling on and off, which saves considerable energy.
Look for models with high MEPS (Minimum Energy Performance Standards) star ratings, ideally 5 stars or more. Smart features like integrated Wi-Fi and programmable timers also help manage usage during off-peak hours.
| Model (2026) | Capacity (kW) | Energy Rating (Cool/Heat) | Approx. Price (AUD) | Est. Annual Running Cost (AUD)* |
|---|---|---|---|---|
| Daikin Alira X Series | 2.5 - 7.1 kW | High Stars | $1,500 - $3,500+ | $200 - $700+ |
| Mitsubishi Heavy Industries Avanti PLUS | 2.5 kW | 5.5 Cool / 6.0 Heat | ~$1,200 - $1,800 | $180 - $300 |
*Estimated annual running costs vary widely based on usage, climate, and system size. A 2.5 kW split system running 8 hours/day could cost $1.50-$2.50/day.
5. Washing Machines and Dishwashers: Water & Energy Combined
While not the absolute biggest energy users, washing machines and dishwashers offer opportunities for savings, especially with frequent use. Focus on both Energy Star Ratings and WELS (Water Efficiency Labelling and Standards) ratings.
- Washing Machines: Prioritise models with high energy and water ratings. Using cold water cycles significantly reduces energy consumption. Average usage is 200-400 kWh/year, costing $40-$80 annually.
- Dishwashers: A 3.5-star model can cost around $44 annually (using four times a week), compared to $74 for a 2-star model. Look for models with an Eco mode and consider skipping the heated dry cycle, which can easily halve your cost per load.
Maximising Your Savings with Rebates and Smart Habits
Beyond purchasing efficient appliances, several state and federal programs can further reduce your costs. The NSW Home Energy Saver Program offers zero-interest loans up to $15,000 for a range of upgrades, including efficient air conditioning and hot water, with a separate $4,000 discount for eligible lower-income households. In Victoria, the VEU program provides immediate discounts on eligible upgrades at the point of sale.
For a comprehensive overview of all available support, read our guide: Australia’s Energy Bill Relief Fund 2026: Your Guide to Current Support and Savings.
Smart Usage Habits:
- Switch Off at the Wall: Appliances on standby can still draw power, costing up to $100 annually.
- Run Full Loads: For washing machines and dishwashers, always run full loads.
- Optimise Temperatures: Set air conditioners to 25°C-27°C in summer. Each degree lower can increase energy use by 5-10%.
- Regular Maintenance: Clean filters in air conditioners and dryers, and check fridge door seals.
- Time-of-Use Tariffs: If you have solar panels or a time-of-use electricity plan, run high-draw appliances during the day or off-peak periods.
Bottom Line
Investing in energy-efficient appliances in 2026 is a proven strategy to combat rising electricity costs and reduce your household’s environmental footprint. Prioritise upgrading heat pump dryers, heat pump hot water systems, and inverter reverse-cycle air conditioners as these offer the most significant long-term savings. Combine these purchases with available state rebates and smart usage habits to unlock annual savings of hundreds, potentially over $1,000, making your home more comfortable and affordable to run. Always check the latest Energy Star and WELS ratings, and research specific state government programs for maximum benefit.