⚡️ Did you know? A better energy rating could save you $350–$1,500 a year on bills ⚡️🏠 Homes with higher NatHERS ratings sell for up to 10% more 🏠🌿 Australia's average home rating is just 2.9 out of 10 stars — find out yours 🌿⚡️ Did you know? A better energy rating could save you $350–$1,500 a year on bills ⚡️🏠 Homes with higher NatHERS ratings sell for up to 10% more 🏠🌿 Australia's average home rating is just 2.9 out of 10 stars — find out yours 🌿
Updated January 2026

Electricity Costs by State in Australia

Compare electricity prices across all states and territories. Understand how rates are set, what affects your bills, and how to reduce your energy costs.

State-by-State Price Comparison

Cheapest

TAS
26.6c/kWh

National Average

30.3c
per kWh

Most Expensive

SA
34.2c/kWh

New South Wales

Climate Zone 5
32.5c/kWh
Price Range
26.4c - 37.3c
Avg. Annual Bill
$1,850

Highest average rates in mainland Australia. Sydney metro areas tend to be at the higher end.

AER Default Market Offer

Victoria

Climate Zone 7
28.7c/kWh
Price Range
25.4c - 31.7c
Avg. Annual Bill
$1,650

Regulated prices through the Victorian Default Offer. Higher heating demands in winter.

Victorian Default Offer

Queensland

Climate Zone 2
29.7c/kWh
Price Range
20c - 33c
Avg. Annual Bill
$1,720

South-East QLD is deregulated. Regional areas (Ergon) have higher regulated rates.

QCA Regional Prices / Market

South Australia

Climate Zone 4
34.2c/kWh
Price Range
28c - 52c
Avg. Annual Bill
$1,980

Historically highest electricity prices in Australia. High solar uptake offsets costs.

AER Default Market Offer

Western Australia

Climate Zone 4
32.4c/kWh
Price Range
32.4c (regulated)
Avg. Annual Bill
$1,890

Regulated market through Synergy. Flat rate structure for most residential customers.

Synergy A1 Tariff

Tasmania

Climate Zone 6
26.6c/kWh
Price Range
26.6c (regulated)
Avg. Annual Bill
$1,420

Lowest mainland rates. Primarily hydro-powered grid. Higher heating costs in winter.

Aurora Energy

Australian Capital Territory

Climate Zone 6
28.5c/kWh
Price Range
27c - 28.5c
Avg. Annual Bill
$1,580

100% renewable electricity target achieved. Cold winters increase heating demand.

ICRC Regulated

Northern Territory

Climate Zone 1
30.1c/kWh
Price Range
30.1c (regulated)
Avg. Annual Bill
$2,100

Regulated market. High cooling demands year-round. Limited grid interconnection.

Jacana Energy

How Electricity Prices Are Calculated

Your electricity bill is made up of several components, not just the per-kWh usage charge. Understanding these can help you find ways to reduce costs:

Usage Charges (c/kWh)

The per-kilowatt-hour rate for electricity you consume. This is typically the largest portion of your bill and varies by state, retailer, and plan type.

Daily Supply Charge

A fixed daily fee (typically 80c-$1.50/day) for being connected to the grid. You pay this regardless of how much electricity you use.

Solar Feed-in Tariff

If you have solar panels, you receive a credit (typically 5-12c/kWh) for excess electricity you export to the grid.

Time-of-Use Rates

Some plans charge different rates based on time of day. Peak rates (3-9pm) can be 40-50c/kWh, while off-peak (10pm-7am) may be only 15-20c/kWh.

Regulated vs Deregulated Markets

Australia has a mix of regulated and competitive electricity markets:

  • Competitive markets (NSW, VIC, SE QLD, SA): Multiple retailers compete for customers. The government sets a reference price (Default Market Offer or Victorian Default Offer) as a benchmark, but retailers can offer discounts.
  • Regulated markets (WA, NT, TAS, Regional QLD): Prices are set by government authorities or regulated utilities. Less choice, but often more stable pricing.

How to Reduce Your Electricity Costs

Improve Home Energy Efficiency

The most effective long-term strategy is improving your home's energy efficiency. A higher-rated home uses less energy for heating and cooling.

  • Upgrade ceiling insulation to R5.0+ to reduce heating/cooling by up to 40%
  • Install double glazing to reduce heat loss through windows by 50%
  • Switch to a heat pump hot water system to cut water heating costs by 60-75%
  • Install solar panels (6kW system typically covers daytime usage)
Estimate Your Rating

Compare Retailers & Plans

If you're in a competitive market, shopping around can save you hundreds per year. Use government comparison tools:

Official Resources:

TM

Taylor M

NatHERS & Home Energy Specialist

Published 12 January 2026
8 min read

Related Articles

Estimate Your Home Energy Rating

Use our free calculator to get an instant estimate of your home's star rating

Cut your next bill — start here

Three practical next steps to lower your electricity costs this quarter.