Electricity Bills to Fall Across Most Australian States
Australian households and small businesses will see electricity prices fall from July 1, 2026, with the Australian Energy Regulator (AER) confirming its final Default Market Offer (DMO) cuts residential prices by up to 7.2% in Queensland and 3.4%-5% in New South Wales, while South Australia sees a slight 1.4% increase.
For the first time, retailers will be required to offer a default Solar Sharer Offer, announced earlier this year as a way for more households, including those without rooftop solar, to make better use of Australia’s abundant solar generation.
“This is a positive outcome with prices coming down for the majority of households and all small businesses across the three regions where the DMO safety net applies,” AER Chair Clare Savage said.
What’s Driving Electricity Prices Down?
Federal Energy Minister Chris Bowen credited the decline to Australia’s grids surpassing 50% renewable generation, pushing wholesale prices down. AER Chair Clare Savage noted lower wholesale energy costs, reduced spot price volatility and increased output from renewable sources, including wind and batteries, drove the declines.
Wholesale energy costs had eased “despite uncertainty created by conflict in the Middle East,” Savage said. While network charges have increased across much of the National Electricity Market, wholesale electricity costs have fallen enough to more than offset that rise in most regions.
New Solar Sharer Offer: 3 Hours of Free Power Daily
The opt-in energy plan for customers with smart meters provides three hours of free electricity in the middle of the day, allowing those who can shift their usage to this period to potentially reduce their bills.
The free usage periods are set to be 11am to 2pm in New South Wales and South East Queensland, and 12pm to 3pm in South Australia. Customers will be able to access up to 24 kWh of free electricity during this daily free window.
The free power will be available to homes even if they don’t have solar panels. It will be available to both homeowners and renters.
Who Benefits Most From the Solar Sharer Offer?
The new Solar Sharer Offer is an opportunity to make further savings if households can shift some of their electricity usage, such as washing machines, air conditioning, or electric vehicle charging, into the middle of the day.
Work-from-home households running appliances during the free window, EV owners charging during midday instead of overnight, and households with battery storage charging batteries for evening use are best positioned to benefit.
The Solar Sharer Offer has the same annual cost as the DMO Time of Use tariff but with free energy in the middle of the day and slightly higher prices (1 to 4 cents/kWh) in other parts of the day. That is why the offer is likely to work best for households that can actually shift usage into the free window.
State-by-State Price Changes
| State/Region | Flat Rate Change | Time-of-Use Change | Annual Savings |
|---|---|---|---|
| NSW (Flat Rate) | -3.4% to -5% | Up to -7.7% | Up to $137 (flat) / $211 (TOU) |
| QLD South-East | -7.2% | -10.7% | $229/year (TOU) |
| South Australia | +1.4% | -1.1% | +$33/year (flat) |
Small businesses see even bigger reductions, with NSW’s Essential Energy zone offering time-of-use small business price drops of 20.9% — saving up to $1,303 per year. Flat rate small business prices fall between 6.8% and 11.3% across all regions.
How to Access These Savings
The AER stresses the DMO is not intended to be a competitive market offer — market offers from retailers are typically up to 20% below the DMO reference price. For maximum savings, Australian households should:
- Compare electricity plans using the Best Electricity Plans in Australia 2026: A Comprehensive Guide for Households to Cut Costs
- Consider the Solar Sharer Offer if you have flexible loads or work from home
- Optimize EV charging with our guide on Slash Your EV Home Charging Costs by 70% in Australia 2026: A Smart Guide
With the Solar Sharer Offer now part of the DMO, there’s the added safety of it being a regulated price, which means consumers can feel confident they are not being overcharged outside the free power period.
Retailers with more than 1,000 customers are required to offer the Solar Sharer Offer from 1 July 2026. The new pricing takes effect exactly one month from today, providing immediate relief for millions of Australian households facing cost-of-living pressures.