Winter in Australia often brings a sharp increase in energy bills, and for renters, the challenge is compounded by limitations on permanent home upgrades. However, significant savings are entirely achievable this winter, with some strategies potentially slashing your bills by hundreds of dollars. This guide provides practical, renter-friendly solutions using current 2026 data, prices, and available support.
Understanding Your Winter Energy Bill in 2026
Before diving into savings, it’s crucial to understand the current energy landscape. As of 1 July 2026, the Australian Energy Regulator (AER) and Victoria’s Essential Services Commission (ESC) have set new Default Market Offer (DMO) and Victorian Default Offer (VDO) prices. These regulated prices act as a safety net for households on standing offers and serve as a reference for competitive market offers.
Electricity Prices: Most households and small businesses on DMOs in New South Wales and South East Queensland will see price decreases this financial year. For residential flat rate standing offers:
- New South Wales: Prices are set to fall between 3.4% (approx. $66) and 5.0% (approx. $137).
- South East Queensland: Prices will decrease by 7.2% (approx. $155).
- South Australia: Households on flat rate offers will experience a modest 1.4% increase (approx. $33).
- Victoria: The Victorian Default Offer (VDO) for 2026-27 indicates an average annual bill reduction of around 5.0% for typical households, making average annual costs roughly $1,591.
For those with smart meters on time-of-use standing offers, savings are generally even larger across DMO regions, ranging from a 1.1% decrease in South Australia to up to 10.7% in South East Queensland.
Gas Prices: In contrast to electricity, gas prices have been on an upward trajectory. Many Australian families have seen their gas bills increase by 20-30% or more over the past few years, driven by global LNG market demand and domestic supply challenges. This significantly impacts heating and hot water costs, making electrification of these services a growing consideration, though often not feasible for renters.
“Heating can account for 20% to 50% of energy use in a home.”
Average Bills: While highly variable, Canstar’s May 2026 Pulse survey data indicates average quarterly electricity bills across states: Queensland ($518), Victoria ($470), New South Wales ($497), South Australia ($477), and Tasmania ($584). Understanding your state’s average can help benchmark your own usage.
For those eligible, state and territory governments continue to offer targeted energy bill relief and concessions for pensioners, concession card holders, and low-income households. While the universal federal Energy Bill Relief Fund ended on 31 December 2025, state programs typically provide between $200 and $400 per year. For a detailed breakdown of what you might be eligible for, consult our guide: Navigating Australia’s Energy Bill Relief and Support in 2026: A Comprehensive Guide.
Tackle Drafts: The Cheapest & Most Effective Fix
Drafts are a major culprit for heat loss, accounting for a significant portion of your winter energy bill. Sealing gaps is often the cheapest and most impactful action a renter can take.
- Door Snakes/Stoppers: Simple fabric tubes filled with sand or rice, placed at the base of doors. Readily available at retailers like Bunnings, Kmart, or Big W for $10-$30 each. The Bunnings ‘Draft Dodger’ range offers various styles and sizes.
- Window and Door Sealing Strips: Self-adhesive foam or rubber strips applied around window and door frames. Products like Raven RP series weather seals (e.g., RP17, RP50) are effective and non-permanent, typically costing $15-$40 per 5-metre roll at hardware stores.
- Window Insulation Film: Transparent plastic film applied to window panes with double-sided tape and shrunk with a hairdryer. This creates a temporary insulating layer, similar to double glazing. A 3M Window Insulator Kit for a standard window costs around $30-$50.
- Removable Gap Fillers: For larger gaps in skirting boards or around architraves, consider removable caulking or gap fillers that won’t damage surfaces. Selleys No More Gaps Multipurpose Filler (non-paintable, easily removable types) can be used carefully, costing around $10-$15 per tube.
These measures can reduce heat loss by up to 25%, directly lowering your heating demand.
Smart Heating: Maximising Warmth, Minimising Cost
Heating accounts for a substantial portion of winter energy use. Choosing and using your heating wisely is critical.
- Reverse Cycle Air Conditioners (RCACs): If your rental has an RCAC, use it. They are significantly more energy-efficient than portable electric heaters, operating on a heat pump principle. Running costs for heating are typically $0.20-$0.40 per hour for a small 2.5kW unit, $0.30-$0.70 for a 3.5kW unit, and $0.70-$0.95 for a 5kW+ unit.
- Optimal Thermostat Settings: Set your thermostat between 18-20°C. Each degree higher can increase energy consumption by 10%. Use the ‘auto’ fan setting for optimal efficiency.
- Targeted Heating: Only heat the rooms you are actively using. Close doors to unheated areas.
- Portable Electric Heaters: While cheap to buy, these are expensive to run. A 1000-2400W fan heater can cost $0.40-$0.80 per hour to operate. Over a winter, a 2400W heater run for eight hours a day could add around $247 to your bill. Use them only for short bursts in small, well-sealed rooms.
- Electric Blankets/Throws: These are a far more economical way to stay warm personally. Running costs are minimal, often just $0.05-$0.15 per hour for a single blanket, directly heating you rather than the entire room.
| Heating Type | Typical Running Cost (per hour) | Efficiency for Renters |
|---|---|---|
| Reverse Cycle AC (2.5kW) | $0.20 - $0.40 | High efficiency, ideal if already installed. |
| Portable Electric Heater | $0.40 - $0.80 | Low efficiency, best for short, targeted use. |
| Electric Blanket/Throw | $0.05 - $0.15 | Very high personal efficiency, lowest running cost. |
Hot Water Habits: An Unseen Energy Drain
Heating water is a major energy consumer, especially with gas prices rising. While replacing hot water systems is typically not a renter’s option, managing your usage is key.
- Shorter Showers: Reduce shower times. Every minute saved reduces the energy needed to heat water.
- Efficient Showerheads: If your landlord permits, installing a water-efficient 4-star showerhead can save around $315 a year on water and heating costs. Remember to keep the original to reinstall when you move.
- Lower Thermostat (if accessible and permitted): If you have safe, accessible control over your hot water system’s thermostat, lowering it slightly (e.g., from 70°C to 60°C) can save energy, but always consult your landlord and ensure it remains above 60°C to prevent Legionella bacteria growth.
Appliance Efficiency: Small Changes, Big Impact
Even small changes in appliance use can add up.
- Standby Power: Appliances left on standby can still draw power. Use smart power boards or make a habit of switching off at the wall. This can save $85-$250 a year if you eliminate a second fridge/freezer or consistently turn off devices.
- Fridge/Freezer Settings: Ensure your fridge is set to 3-4°C and freezer to -18°C. Check door seals for leaks.
- Laundry Habits: Always wash with cold water and only run full loads. Using a clothesline instead of a dryer just once a week can save you around $85 a year.
Leveraging Technology: Smart Plugs & Energy Monitoring
Technology offers accessible, non-permanent ways for renters to gain control over their energy use.
- Smart Plugs: Plug your electric heaters, lamps, or entertainment systems into smart plugs (e.g., TP-Link Kasa Smart Plug KP115, typically $25-$35 each). These allow you to turn devices on/off remotely or set schedules, preventing forgotten heaters from running all day.
- Plug-in Power Meters: These inexpensive devices (e.g., Arlec Power Meter for around $20-$30 from Bunnings) plug into a power point and measure the electricity consumption of any appliance plugged into them. They are excellent for identifying energy-hungry culprits.
- Smart Meters: If your rental property has a smart meter, leverage the data. Many energy retailers offer apps or online portals that provide detailed insights into your daily and hourly consumption, helping you identify peak usage times and adjust habits. For more on this, see our guide: Unlock $800+ Savings: Your Smart Meter Guide for Australia 2026.
Compare Your Energy Plan: The Most Impactful Step
Even with all the energy-saving tips, being on an uncompetitive energy plan can negate your efforts. The DMO and VDO are reference prices, but market offers from retailers are often significantly cheaper.
- Use Government Comparison Websites: Regularly compare plans using official, free government services like EnergyMadeEasy.gov.au (for NSW, QLD, SA, ACT, TAS) or Victorian Energy Compare (for VIC). These platforms show you the best deals available in your postcode.
- Ask About the Solar Sharer Offer: From 1 July 2026, retailers with over 1,000 customers in DMO jurisdictions (NSW, SE QLD, SA) are required to offer a Solar Sharer Offer (SSO). This provides eligible smart meter households with three hours of free daytime electricity (typically 11 am-2 pm in NSW/SE QLD, 12 pm-3 pm in SA), even if you don’t have solar panels. Shifting high-consumption activities like laundry or dishwashing to this period could lead to substantial savings.
Don’t assume your current plan is the best. Switching retailers or plans can save you hundreds of dollars annually.
Bottom Line
Australian renters can achieve substantial energy savings this winter without needing permanent property upgrades. By focusing on draft proofing (costing as little as $10-$30 per door), optimising heating (using reverse cycle AC at 18-20°C instead of portable electric heaters, saving potentially $200-$400 over winter), and actively comparing energy plans (potentially saving hundreds annually by switching from a standing offer), you can significantly reduce your energy bills. Leverage smart plugs and government comparison tools to take control of your consumption and ensure you’re on the best available deal. Don’t leave money on the table – act now to make your rental warmer and your wallet heavier this winter.