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.
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.
Run the calculator when you are ready.
✅ Subsidy Eligibility Checker — State-by-State Comparison
| State | Price Increase | Avg Bill | Available Rebates | Eligibility |
|---|---|---|---|---|
| Queensland (21.5% increase) | 21.5% | $420 | Queensland Energy Rebate | Subsidies ended |
| Western Australia (21.5% increase) | 21.5% | $380 | WA Household Rebate | Subsidies ended |
| New South Wales (8.5% increase) | 8.5% | $450 | Low Income Household Rebate | Rebates available |
| Victoria (7.2% increase) | 7.2% | $380 | Victoria Energy Compare | Rebates available |
| South Australia (12.8% increase) | 12.8% | $520 | SA Cost of Living Concession | Rebates available |
| Tasmania (5.5% increase) | 5.5% | $320 | TAS Energy Supplement | Rebates available |
| ACT (6.8% increase) | 6.8% | $350 | ACT Utilities Concession | Rebates available |
| Northern Territory (4.2% increase) | 4.2% | $480 | NT Pensioner Concession | Rebates 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
ENERGY ANALYSIS
Subsidy calculation summary
Subsidies ended
Before rebates
Per quarter
Extra per year
🗺️ State Subsidy Comparison
How your state compares to others across Australia
Quarterly rebate amounts (annual amounts may be higher with concession cards)
📊 Price Increase by State
💰 Available Rebates & Concessions
| Rebate | Annual Amount | Quarterly Saving |
|---|---|---|
| Queensland Energy Rebate | $175.00 | $43.75 |
💡 Money-Saving Recommendations
📰 Why Did Prices Jump?
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?
🎯 Expert Tips
📊 Comparison Table
| Calculator | Rebate Amount | Price Rise | Features |
|---|---|---|---|
| energy.gov.au | $300 | 25% | Official government info |
| Manual Calculation | $300 | Varies | Basic calculation |
| This Calculator | $300 | 25% | State-specific analysis, solar savings, rebate tracking |
📈 Infographic Stats
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 daysQuarterly solar feed-in tariff savings
Total Rebates
Total = Federal Rebate + State Rebate + ConcessionSum of all eligible rebates
Final Bill
Final = New Bill - Total Rebates - Solar SavingsYour 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.
State-by-State Price Increases
| State | Price Increase | Avg Quarterly Bill | Annual 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.
💡 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.
Historical Electricity Prices
| Year | Avg Quarterly Bill | Change |
|---|---|---|
| 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
🔗 Related Australian Calculators
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.
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
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
💰 Typical Appliance Running Costs (at 32c/kWh)
| Appliance | Watts | Per Hour | Per Day (typical use) |
|---|---|---|---|
| Air Conditioner (cooling) | 2,000W | 64c | $3.84 (6hrs) |
| Electric Heater | 2,400W | 77c | $4.62 (6hrs) |
| Pool Pump | 1,500W | 48c | $2.88 (6hrs) |
| Electric Hot Water | 3,600W | $1.15 | $2.30 (2hrs) |
| Clothes Dryer | 3,000W | 96c | $0.96 (1hr) |
| Washing Machine | 500W | 16c | $0.16 (1hr) |
| Refrigerator | 150W (avg) | 5c | $1.15 (24hrs) |
| TV (LED 55") | 100W | 3c | $0.15 (5hrs) |
| LED Light Bulb | 10W | 0.3c | $0.02 (6hrs) |
* Costs based on 32c/kWh. Your rate may vary.
🔮 Electricity Price Outlook 2026-2028
🔋 Home Battery Storage Options
Tesla Powerwall 3
BYD Battery-Box
Enphase IQ
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
Official electricity market data and wholesale prices
Updated: 2026-02-04
Energy market regulation and consumer protection
Updated: 2026-02-04
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
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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