How much was the federal energy bill relief that ended in 2026?

The federal Energy Bill Relief Fund provided a total of $150 to eligible households in the second half of 2025, paid in two quarterly instalments of $75. This program ended on 31 December 2025.

Are electricity prices going up or down in Australia in 2026?

It's mixed. While the government rebates have ended, causing out-of-pocket costs to rise, the underlying wholesale electricity prices are forecast to decrease from mid-2026. The Australian Energy Regulator (AER) has proposed modest price reductions for customers on default offers in NSW, SE QLD, and SA.

What is the single best way to lower my power bill in 2026?

The quickest and easiest way to lower your bill is to compare energy plans on the government's Energy Made Easy website and switch to a cheaper market offer. This can often save you over $200 a year without changing your energy usage.

Is a solar battery worth it in Australia in 2026?

With the federal Cheaper Home Batteries Program providing a rebate of around $4,350 on a typical 14kWh battery, 2026 is a very attractive time to invest. A battery allows you to store your own solar power and use it during peak evening hours, significantly reducing your reliance on the grid and protecting you from high prices.

Energy Bill Relief is Ending: How to Prepare for Higher Power Bills in Australia in 2026

The final round of Federal Government energy bill relief ended on 31 December 2025, meaning households will no longer receive the automatic $150 to $300 annual credits that have been softening the blow of high electricity costs. While wholesale electricity prices are showing signs of falling in mid-2026 due to the influx of renewables, the removal of these subsidies means your out-of-pocket expenses will rise. For the average family, this means finding an extra $200 to $500 a year to cover the same power usage. This guide will walk you through exactly what’s changing, how much you can expect to pay, and the practical steps you can take right now to get ahead of the price shock.

Why Your Bills Are Going Up (Even as Wholesale Prices Fall)

For the past couple of years, government rebates have acted as a shock absorber, shielding consumers from the full impact of volatile energy markets. The Australian Bureau of Statistics reported a sharp 37% rise in the out-of-pocket cost of electricity in the 12 months to February 2026, primarily because the rebates that were artificially lowering bills have been removed.

At the same time, the Australian Energy Regulator (AER) has forecast that default electricity prices in NSW, SE QLD, and SA could fall by between 1.3% and 10.1% from July 2026. Similarly, Victoria’s Essential Services Commission (ESC) has proposed an average bill reduction of $46 for customers on the Victorian Default Offer (VDO). This is welcome news, but it won’t be enough to offset the loss of the rebate for most households.

The key takeaway: The price you pay per unit of energy might be slightly decreasing, but the total on your bill is increasing because the government credit is gone.

What You’ll Actually Pay: A State-by-State Look at 2026 Bills

Your actual bill depends heavily on your usage, retailer, and where you live. Based on the latest 2026 data, here’s a snapshot of what an average household using around 4,900 kWh per year can expect to pay annually, keeping in mind these figures no longer include the federal rebate.

South Australia: Remains the most expensive state, with an average annual bill of $1,580.
New South Wales: Average bills are around $1,450, having seen a significant 4.2% price rise year-on-year.
Queensland: Queenslanders can expect to pay approximately $1,420 annually.
Victoria: Average annual bills are estimated at $1,380.
Tasmania: The average yearly cost is around $1,340.
ACT: The cheapest territory, with an average annual bill of $1,310.

These figures are based on the Default Market Offer (DMO) or VDO, which act as a price cap. It is crucial to remember that around 90% of competitive market offers are cheaper than the DMO, so you can and should be paying less than this.

Your 5-Step Action Plan to Combat Higher Bills

Don’t just accept higher bills. Take control with these actionable steps.

Step 1: Switch and Save: Find a Cheaper Energy Plan

If you haven’t switched energy retailers in the last 12 months, you are almost certainly paying too much. The DMO and VDO are designed as safety nets, not competitive prices.

Action: Use the government’s official comparison site, Energy Made Easy, or a trusted commercial comparator to find a better deal. The ACCC estimates you could save an average of $221 a year just by switching from a standing offer to a competitive market one.

Step 2: Upgrade for Efficiency: High-Impact Appliances

Heating, cooling, and refrigeration are the biggest energy hogs in most homes. Upgrading old, inefficient appliances makes a huge dent in your daily consumption.

Heating/Cooling: Ditch the old electric heater. A modern reverse-cycle air conditioner is far more efficient for both heating and cooling. Look for models with high energy star ratings and inverter technology, like the Daikin Alira X Series or Mitsubishi Electric MSZ-AP Series. The Victorian Energy Upgrades (VEU) program offers significant rebates for making this switch.
Clothes Dryer: A heat pump dryer is the new standard for energy efficiency. A model like the Samsung AI Dry 9-Star Heat Pump Dryer uses up to 60% less energy than a conventional vented dryer, saving you money with every load.
Refrigerator: Your fridge runs 24/7. An efficient model like the Haier 433L Refrigerator, which has an 8-star energy rating, can consume 60% less energy than older 3.5-star models.

Step 3: Go Solar and Add a Battery

Generating your own electricity is the ultimate way to slash your bills. Australia’s solar incentives remain strong in 2026.

Solar Panels: The federal Small-scale Renewable Energy Scheme (SRES) can still reduce the upfront cost of a typical 6.6kW system by $1,500 - $2,000.
Home Batteries: To truly gain energy independence, add a battery. The Federal Government’s Cheaper Home Batteries Program offers a substantial discount. For installations before 1 May 2026, the rebate is worth about $311 per kWh of battery capacity. For a standard 14kWh battery, that’s a saving of approximately $4,350 off the upfront cost. This allows you to store cheap solar power generated during the day for use during expensive evening peak hours.

Step 4: Low-Cost, High-Impact Habits

Small changes to your daily routine can add up to big savings.

Switch off at the wall: Appliances on standby can cost you up to 10% on your bills. Turn off gaming consoles, computers, and televisions at the wall when not in use.
Wash clothes in cold water: This simple switch can save the average household around $115 per year.
Optimise your thermostat: In summer, set your air conditioner to 26°C or higher. In winter, set your heater to 18-20°C. Every degree can alter your energy use by up to 10%.
Seal the gaps: Use weather strips to block draughts around doors and windows. Use curtains and blinds to keep heat in during winter and out during summer.

Step 5: Check for State-Based Concessions

While the broad federal relief has ended, every state and territory still offers energy concessions and rebates for eligible cardholders, such as pensioners, veterans, and low-income families. These are separate from the expired federal program and are still active. Check your state government’s energy website to see if you qualify.

Bottom Line

The era of automatic, universal energy bill relief is over. While underlying electricity prices are showing some signs of improvement, the removal of government rebates will lead to higher bills for almost every Australian household in 2026.

The single most effective first step is to visit the Energy Made Easy website right now and compare your current plan. Switching to a competitive market offer can immediately save you hundreds of dollars. For long-term protection against price volatility, investing in energy-efficient appliances and a solar PV system with a battery offers the best return, allowing you to generate and control your own power.