RISINGABC Australia, The GuardianFebruary 2026🇦🇺 AUSTRALIAEnergy

Australia Electricity Prices Jump 21.5% as Subsidies Roll Off

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Australian households face electricity price increases of up to 21.5% as federal and state energy subsidies expire in 2026. Queensland and Western Australia are hardest hit. This calculator estimates your new power bill by state, finds remaining rebates, and shows how to minimize the impact through solar, battery storage, or retailer switching.

Concept Fundamentals
21.5%
Price Jump
QLD & WA worst hit
$1,950
Avg Annual Bill
Post-subsidy estimate
$350-700
Subsidy Lost
Per household/year
10M+
Households Hit
Across Australia

Ready to run the numbers?

Why: Australia's electricity market is undergoing a painful transition as pandemic-era and cost-of-living subsidies expire. The federal Energy Bill Relief rebate ($300-350 per household) and various state supplements (up to $700 in QLD) are ending or reducing. For households already paying $1,400-1,600 annually, a 21.5% increase means $300-350 more per year. Understanding your state's specific subsidy situation and available alternatives helps you prepare.

How: The calculator takes your state, household size, current usage (kWh), and whether you have solar. It applies the state-specific subsidy expiry rates, calculates your new estimated annual bill, and compares against your current subsidized bill. It also identifies remaining rebates, concession eligibility, and potential savings from switching retailers or installing solar/battery.

Your estimated electricity bill increase after subsidies endWhich state and federal rebates you're losing and when
Methodology
📊AEMC Price Data
Australian Energy Market Commission residential price trends and forecasts
📋State Rebate Programs
Current and expiring subsidies by state from treasury and energy departments
📐AER Default Market Offer
Australian Energy Regulator reference pricing for comparison
Sources:AEMCAER

Run the calculator when you are ready.

Calculate Your Power Bill ImpactSee how expiring subsidies affect your electricity costs

✅ Subsidy Eligibility Checker — State-by-State Comparison

StatePrice IncreaseAvg BillAvailable RebatesEligibility
Queensland (21.5% increase)21.5%$420Queensland Energy RebateSubsidies ended
Western Australia (21.5% increase)21.5%$380WA Household RebateSubsidies ended
New South Wales (8.5% increase)8.5%$450Low Income Household RebateRebates available
Victoria (7.2% increase)7.2%$380Victoria Energy CompareRebates available
South Australia (12.8% increase)12.8%$520SA Cost of Living ConcessionRebates available
Tasmania (5.5% increase)5.5%$320TAS Energy SupplementRebates available
ACT (6.8% increase)6.8%$350ACT Utilities ConcessionRebates available
Northern Territory (4.2% increase)4.2%$480NT Pensioner ConcessionRebates available

Concession card holders may qualify for additional rebates. Check your state energy department for current programs.

⚡ Common Scenarios

Click any example to auto-fill the calculator:

🏠 Queensland Family (No Solar)

Family of 4 in Brisbane affected by 21.5% price jump

👴 WA Pensioner with Concession

Elderly person in Perth with concession card

☀️ Queensland Home with Solar

Family with 6.6kW solar system offsetting usage

🏢 NSW Apartment (Lower Increase)

Sydney apartment with 8.5% increase (subsidies continue)

⚡ SA High Usage Home

South Australia - highest average bills in Australia

🚗 EV Owner in Victoria

Electric vehicle owner with higher usage

⚡ Enter Your Details

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Electricity Subsidy Analysis
$381.50
New Quarterly Bill
Price Increase
21.5%
Annual Increase
$903.00

ENERGY ANALYSIS

Subsidy calculation summary

RISK: HIGH
SUBSIDIES ENDED
PRICE INCREASE
21.5%

Subsidies ended

NEW QUARTERLY BILL
$425.25

Before rebates

AVAILABLE REBATES
$43.75

Per quarter

ANNUAL IMPACT
+$903.00

Extra per year

🗺️ State Subsidy Comparison

How your state compares to others across Australia

QLD
$175
Queensland
← You
WA
$150
Western Australia
NSW
$285
New South Wales
VIC
$250
Victoria
SA
$243
South Australia
TAS
$156
Tasmania
ACT
$200
ACT
NT
$180
Northern Territory

Quarterly rebate amounts (annual amounts may be higher with concession cards)

📊 Price Increase by State

💰 Available Rebates & Concessions

RebateAnnual AmountQuarterly Saving
Queensland Energy Rebate$175.00$43.75

💡 Money-Saving Recommendations

✓ Consider installing solar panels - typical 6.6kW system saves $80-120/month
✓ Switch to a competitive retailer - could save 10-15% on default tariffs
✓ Check eligibility for concession cards for additional rebates
✓ Use major appliances during off-peak hours (10pm-7am) for lower rates
✓ Compare plans at Energy Made Easy (government comparison site)

📰 Why Did Prices Jump?

February 2026 Price Shock: Electricity prices jumped 21.5% in Queensland and Western Australia as government subsidies rolled off. The $300 federal Energy Bill Relief rebate and $75-$150 state rebates ended, leading to Australia\'s headline inflation rising from 2.4% to 3.8%. The RBA responded by raising interest rates 0.25% on February 3, 2026.

States Most Affected

Queensland: +21.5% (largest subsidy removal)
Western Australia: +21.5% (state subsidy ended)
South Australia: +12.8% (highest base prices)

What You Can Do

1. Compare retailers at energymadeeasy.gov.au
2. Install solar if you own your home
3. Shift usage to off-peak hours
4. Check concession card eligibility

📋 Key Takeaways

  • $300 household rebate — Every Australian household receives $300 Energy Bill Relief rebate in 2026
  • $325 small business — Small businesses receive $325 rebate to offset electricity price increases
  • Electricity prices +25% in 3 years — Prices have risen significantly since 2022, with QLD and WA seeing 21.5% jumps
  • Solar adoption — 33% of Australian homes now have solar panels, providing significant savings
  • Battery incentives — State-specific battery storage incentives vary, with some states offering up to $6,000 rebates

💡 Did You Know?

💰$300 rebate per household — The federal Energy Bill Relief package provides $300 to every Australian household in 2026Source: Australian Government
📈Electricity prices rose 25% since 2022 — Driven by coal plant closures, gas export contracts, and renewable transition costsSource: AEMO
☀️33% of Australian homes have solar — Over 3.5 million households generate their own electricity, reducing grid dependenceSource: Clean Energy Council
🔋Battery storage incentives vary by state — Some states offer up to $6,000 rebates for home battery installationsSource: State Governments
Gas prices doubled in recent years — Gas export contracts and supply constraints pushed domestic gas prices significantly higherSource: AEMO
🏭Coal plant closures accelerating — Multiple coal-fired power stations closed, reducing baseload capacity and increasing pricesSource: AEMO

🎯 Expert Tips

☀️Install solar panels — Typical 6.6kW system saves $1,200-$2,000 per year, paying for itself in 3-5 years with current prices
📝Apply early for rebates — Government rebates are time-limited; apply as soon as eligibility opens to secure your payment
🔍Compare energy retailers — Switching retailers can save 10-15% on default tariffs; use energymadeeasy.gov.au for comparisons
🔋Invest in battery storage — Home batteries can store excess solar for evening use, reducing grid dependence and costs

📊 Comparison Table

CalculatorRebate AmountPrice RiseFeatures
energy.gov.au$30025%Official government info
Manual Calculation$300VariesBasic calculation
This Calculator$30025%State-specific analysis, solar savings, rebate tracking

📈 Infographic Stats

$300
Household Rebate
25%
Price Rise (3 years)
33%
Solar Adoption
2035
Coal Phaseout

Quick Answer

Australian electricity prices rose sharply in February 2026 as federal Energy Bill Relief subsidies ended. QLD and WA saw 21.5% increases. State rebates, concession cards, and solar can reduce your bill. Compare plans at Energy Made Easy.

📚 What Is Australia's Electricity Price Shock?

📐 Formulas Used

New Bill After Price Increase

New Bill = Current Bill × (1 + Price Increase %)

Calculates bill impact from subsidy removal

Solar Savings

Savings = Solar kW × Daily Gen × FIT × 90 days

Quarterly solar feed-in tariff savings

Total Rebates

Total = Federal Rebate + State Rebate + Concession

Sum of all eligible rebates

Final Bill

Final = New Bill - Total Rebates - Solar Savings

Your net electricity bill after all deductions

February 2026: What Happened?

Electricity prices jumped dramatically as government subsidies rolled off at the end of January 2026. The $300 federal Energy Bill Relief rebate and state-specific rebates ended, causing immediate bill increases.

21.5%
QLD & WA Increase
3.8%
Inflation (was 2.4%)
+0.25%
RBA Rate Hike
$300
Lost Federal Rebate

State-by-State Price Increases

StatePrice IncreaseAvg Quarterly BillAnnual Impact
Queensland+21.5%$420+$362/year
Western Australia+21.5%$380+$327/year
South Australia+12.8%$520+$266/year
New South Wales+8.5%$450+$153/year
Victoria+7.2%$380+$109/year
ACT+6.8%$350+$95/year
Tasmania+5.5%$320+$70/year
Northern Territory+4.2%$480+$81/year

Available Rebates & Concessions (2026)

Commonwealth Concessions

  • • Pension Supplement: varies by payment type
  • • Energy Supplement (Centrelink): $14.10-$26.60/fortnight
  • • Veterans' Affairs supplement available

State-Based Rebates

  • • QLD Energy Rebate: up to $175/year
  • • NSW Low Income Rebate: up to $285/year
  • • VIC Energy Compare: up to $250/year
  • • SA Cost of Living: up to $243/year

Note: Eligibility typically requires a Pensioner Concession Card, Health Care Card, or Department of Veterans' Affairs Gold Card.

☀️ Solar: Your Best Defense Against Price Rises

With electricity prices rising, solar power ROI has improved dramatically. A typical 6.6kW system can save $1,200-$2,000 per year, paying for itself in 3-5 years.

$4,500-$7,000
6.6kW System Cost
$1,500/year
Avg Savings
3-5 years
Payback Period
5-12c/kWh
Feed-in Tariff

💡 Energy Saving Tips

Heating & Cooling (40% of bill)

  • ✓ Set AC to 24-25°C in summer, 18-20°C in winter
  • ✓ Use fans before turning on AC
  • ✓ Close curtains on hot/cold days
  • ✓ Seal gaps around doors and windows

Appliances & Usage

  • ✓ Wash clothes in cold water
  • ✓ Run dishwasher/washing machine off-peak
  • ✓ Use energy-efficient LED lighting
  • ✓ Turn off standby power (save 10%)

❓ Frequently Asked Questions

Why did the government end the energy rebates?

The Energy Bill Relief package was always intended as temporary cost-of-living relief during high inflation. With inflation easing (before this price shock), the government decided not to extend the subsidies. This has proved controversial given the resulting price spike.

Will prices come back down?

Unlikely in the short term. Wholesale prices remain elevated due to gas export contracts and coal plant closures. New renewable capacity is coming online, which may moderate prices by 2027-2028.

How do I switch electricity retailers?

Visit energymadeeasy.gov.au to compare offers in your area. Switching is free and takes about 5 minutes online. Your current retailer cannot charge exit fees for standard contracts.

What is a time-of-use tariff?

Electricity costs more during peak times (usually 2-8pm weekdays) and less during off-peak (overnight) and shoulder periods. If you can shift usage to off-peak, you can save significantly.

Should I get a home battery?

Batteries (like Tesla Powerwall) cost $12,000-$18,000 installed. Payback period is 8-12 years currently. Best value for those with solar who use power at night or during peaks. Consider waiting for prices to fall further.

RBA Rate Rise Impact

The electricity price shock pushed inflation to 3.8%, prompting the RBA to raise rates 0.25% on February 3, 2026. This has knock-on effects for mortgage holders and the broader economy.

🏠
+$75/month
Avg Mortgage Impact
📈
4.35%
Cash Rate
💰
+$50/month
Savings Interest Gain

Historical Electricity Prices

YearAvg Quarterly BillChange
2020$320-2%
2021$310-3%
2022$340+10%
2023$380+12%
2024$350 (with rebate)-8%
2025$360 (with rebate)+3%
2026 (Feb)$420 (no rebate)+17%

Action Checklist

Compare retailers at energymadeeasy.gov.au
Check if you qualify for concession card rebates
Get solar quotes (3+ installers)
Review time-of-use tariff options
Conduct home energy audit
Set up bill smoothing (pay same amount monthly)

Understanding Your Electricity Bill

Supply Charge (Fixed)

Daily charge regardless of usage. Typically $1.00-$1.50/day ($90-135/quarter). Covers meter, network access, and admin.

Usage Charge (Variable)

Per kWh of electricity used. Typically 25-40c/kWh depending on retailer and state. This is where you can save most.

Controlled Load

Separate metering for hot water systems. Lower rate (15-20c/kWh) but only operates at set times.

Solar Feed-in

Credit for excess solar exported to grid. Currently 5-12c/kWh depending on retailer. Shows as negative amount.

How to Compare Retailers

1. Get Your Usage Data

Find your daily kWh usage on your bill (e.g., "18.5 kWh/day"). This is essential for accurate comparisons.

2. Compare Reference Prices

Retailers must show how their prices compare to the government reference price (DMO/VDO). Look for offers "X% below reference price."

3. Check Contract Terms

Variable rates can change. Fixed contracts lock in rates but may have exit fees. "No lock-in" offers are best for flexibility.

4. Consider Incentives

Pay-on-time discounts (save 1-4%), direct debit discounts, and sign-up credits can make a difference. Add these to your comparison.

🔌 Electric Vehicles & Electricity Costs

EVs typically add $30-$60/month to electricity bills (10,000-15,000km/year), but save $150-$250/month vs petrol. With higher electricity prices, optimizing EV charging is essential.

3-4 kWh
Per 10km driven
$1.20-$1.60
Per 100km (home)
70% less
Than petrol
Off-peak
Best charging time

Tip: Set your EV to charge between 11pm-6am (off-peak) to minimize costs. Many EVs have scheduling features for this.

State Energy Ombudsmen & Resources

Queensland
ewoq.com.au
NSW
ewon.com.au
Victoria
ewov.com.au
South Australia
ewosa.com.au

Energy ombudsmen provide free dispute resolution. Contact them if you have issues with your retailer.

What is GreenPower and should I get it?

GreenPower is an optional add-on where you pay extra (2-6c/kWh more) to support renewable energy. It's accredited by the government. Consider it if reducing your carbon footprint is a priority.

Can I claim electricity on tax?

If you work from home, you can claim a portion of electricity as a tax deduction. The ATO allows 67c/hour for home office expenses (2023-24 rates) or actual expenses method.

What happens if I can't pay my bill?

Contact your retailer immediately. They must offer hardship programs including payment plans, energy audits, and bill assistance. Disconnection is a last resort with strict rules.

Is it worth getting a smart meter?

Smart meters are required for time-of-use tariffs and solar export. They're generally free to install when switching retailers. They enable better tracking and potential savings through load shifting.

📞 Key Contacts

Energy Made Easy: energymadeeasy.gov.au
Victorian Energy Compare: compare.energy.vic.gov.au
Services Australia (rebates): 132 468
Financial Counselling Hotline: 1800 007 007

💰 Typical Appliance Running Costs (at 32c/kWh)

ApplianceWattsPer HourPer Day (typical use)
Air Conditioner (cooling)2,000W64c$3.84 (6hrs)
Electric Heater2,400W77c$4.62 (6hrs)
Pool Pump1,500W48c$2.88 (6hrs)
Electric Hot Water3,600W$1.15$2.30 (2hrs)
Clothes Dryer3,000W96c$0.96 (1hr)
Washing Machine500W16c$0.16 (1hr)
Refrigerator150W (avg)5c$1.15 (24hrs)
TV (LED 55")100W3c$0.15 (5hrs)
LED Light Bulb10W0.3c$0.02 (6hrs)

* Costs based on 32c/kWh. Your rate may vary.

🔮 Electricity Price Outlook 2026-2028

Q2 2026Prices remain elevated. Solar installations surge.
H2 2026New renewable capacity may moderate wholesale prices.
2027Election year - potential new energy support measures.
2028Large-scale solar/wind projects fully online.

🔋 Home Battery Storage Options

Tesla Powerwall 3

Capacity: 13.5 kWh
Cost: ~$12,000-$15,000
Warranty: 10 years

BYD Battery-Box

Capacity: 5-22 kWh
Cost: ~$8,000-$18,000
Warranty: 10 years

Enphase IQ

Capacity: 3.3-10 kWh
Cost: ~$6,000-$14,000
Warranty: 15 years

Should you get a battery? Best value if you have solar and high evening usage. Current payback is 8-12 years. Battery prices continue to fall annually.

🏛️ Government Support Programs

Home Energy Upgrades

Various state schemes offer rebates for insulation, efficient appliances, and draft sealing. Check your state's energy website.

Solar for Renters

Community battery schemes and virtual power plants allow renters to access renewable energy benefits.

Small Business Programs

Energy efficiency audits and solar grants available for eligible businesses.

Interest-Free Loans

Some states offer no-interest loans for solar and battery installations for eligible households.

⚡ Electricity vs Gas: The Switch Debate

With electricity prices rising, should you switch from gas? Here's the comparison:

Gas (current)

  • • Heating: ~$15-20/GJ
  • • Hot water: Cheaper running cost
  • • Emissions: Higher carbon footprint
  • • Future: Prices rising, phaseout planned

Electric (heat pump)

  • • Heating: 3x more efficient than gas
  • • Hot water: Higher upfront, lower running
  • • Emissions: Zero with solar/renewables
  • • Future: Getting cheaper

Verdict: If replacing gas appliances anyway, consider electric heat pumps. They're 300-400% efficient vs gas at 90%. Payback improves with each electricity price rise.

What's a Virtual Power Plant (VPP)?

A VPP connects home batteries and solar systems across thousands of homes, operating them as one large power station. Participants can earn credits ($10-50/month) for contributing stored energy during peak demand. Programs include SA VPP, AGL Battery Plan, and Origin Loop.

Sources & References

Australian Energy Regulator (AER) • AEMO • Bureau of Statistics • State Government Energy Websites • Energy Made Easy • ACCC Electricity Reports • Clean Energy Council • Solar Quotes Australia

Calculator last updated: February 3, 2026 | Based on February 2026 price changes

Data reflects price increases following end of Energy Bill Relief rebates

Use energymadeeasy.gov.au for personalized comparisons

📚 Official Data Sources

AEMO - Australian Energy Market Operator

Official electricity market data and wholesale prices

Updated: 2026-02-04

AER - Australian Energy Regulator

Energy market regulation and consumer protection

Updated: 2026-02-04

Queensland Government Energy Rebate

QLD energy rebates and subsidies

Updated: 2026-01-31

WA Household Electricity Credit Scheme

Western Australia electricity subsidies

Updated: 2026-01-31

Australian Government Energy Bill Relief

National energy assistance programs

Updated: 2026-01-20

ACCC Electricity Market Monitoring

ACCC electricity market inquiry and reports

Updated: 2026-01-15

⚠️

Important Disclaimer

Australian Disclaimer: This calculator provides estimates based on published electricity price changes and rebate information. Actual bills vary by retailer, usage, and individual circumstances. Visit energymadeeasy.gov.au for official comparison. This is for informational purposes only. Electricity subsidies vary by state and eligibility criteria. Subsidy programs may be time-limited or means-tested. Verify with your state government for current rebate availability. Prices shown are indicative and may not reflect all retailer offers or special rates.

Last verified: February 4, 2026 | Data source: AEMO, AER, State Government Energy Websites

New Quarterly Bill

$381.50\text{\$}381.50

With 21.5% price increase after subsidies ended, your bill rises from $350.00 to $425.25. After applying $43.75 in rebates, your estimated bill is $381.50. Annual increase: $903.00.

For educational and informational purposes only. Verify with a qualified professional.

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