You’ve no doubt heard about it on the news, and perhaps you’ve felt the sting yourself, but energy costs in Australia are on the rise. In May 2025, the Australian Energy Regulator reported that default electricity prices for residential consumers would see increases ranging from 0.5% to 9.7% depending on their usage and location.
Since the price hike rollout on July 1st of this year, some household electricity costs have already grown by 23.6% over the past 12 months, and the price rises for small businesses have ranged from 0.8% to 8.5%, depending on the same factors. All this is to say that the recent spikes in energy costs do not appear to be disappearing or letting up any time soon.
These price increases can be attributed to many factors, but Aussie home and business owners ought to know as much as they can about the situation to protect themselves. If you are a residential or commercial property owner, here’s what you should know about energy rates increasing moving into the new year, along with what you can do to safeguard your household or business from energy price pressures.
What is Driving Energy Cost Increases in Australia?
There isn’t one singular factor affecting Australian energy prices. Global fuel price increases can influence the Australian market, and supply constraints will always apply pressure to demand. Seasonal demand peaks can also lead to price increases, and the more extreme seasons like summer and winter are only growing more severe due to climate change.
The looming issue of climate change has also placed considerable strain on many of the nation’s aging energy infrastructure, exacerbated by the growing demand by state and federal governments for a transition to more renewable and sustainable options. Inflation has also increased globally, so many national and international energy suppliers are charging even more for services.
Understanding these trends can help Aussie home and business owners make informed decisions about what they can realistically do to address rising energy costs on their end. Knowing what is and is not in their control can help consumers assess their current energy usage and develop a smarter battle plan with renewable, energy-saving installations.
Assess Your Current Energy Usage
Consumers can prepare for increased energy prices by first assessing their current usage. Getting a full, clear picture of your current consumption can help you identify which areas are costing you the most money each bill cycle, as well as needing the earliest improvement.
When reading your latest energy bill, try to identify high-consumption appliances, like refrigerators, space heaters, or room lights. Scrutinise any high-cost habits, as well, like over dependence on central heating in the home or shower times beyond seven minutes.
Setting a baseline is important before making any big changes to your home or business. There are various tools and apps available that can track and monitor your building’s energy use, and you can always reach out to a professional service like Solargain, an electrician, or the Default Market Offer for expert advice about where you can save the most money.
Implement Energy-Saving Solutions
Once you’ve established where you stand to lose the most money due to energy price increases, then you can formulate a plan to address them. Here are some easy energy-saving solutions you can implement to reduce your next energy bill.
Home Efficiency Upgrades
If your property struggles to stay at a comfortable temperature in the summer and winter months, then you could invest in insulating your property. By installing insulation and sealing windows and doors, you can reduce wasted heating and cooling while relying less on expensive central heating and cooling.
Installing smart, automated thermostats and energy-efficient lighting can also help minimise sneaky energy costs from your next bill. Check out some of our official partners for assistance with upgrading your home or business to be more energy-efficient.
Sustainable Appliance Choices
Perhaps the biggest culprit hiking up your energy bill is your electrical network. You could save money by switching to solar solutions and more sustainable appliances, as well as even make some money back at the same time. You could see substantial energy price reductions over time by installing solar panels, solar batteries, and solar water heaters on your property.
Just by switching to solar and without doing any load shifting, you can expect to save about 25% on your power bills. However, depending on your usage, you may save even more. Selling back reserve energy to the grid can also generate extra revenue for you, helping you earn while saving money at the same time — a win-win!
Explore solar panel solutions for your home or business today, or learn more about how much you could save by switching to solar today.
Pro tip: Switching to energy-efficient appliances can also help reduce energy costs in your day-to-day; look at the Energy Star label when buying appliances to optimise your kitchen, laundry, and bathrooms.
Behavioural Changes
You can save money by adopting some new habits and being energy-conscious. Be vigilant at the end of the day and turn off power points and appliances that drain standby power, such as overhead lighting, fans, computers, and TVs.
Adjusting your heating and cooling habits can also help save money. In the summer, open windows and doors to create a draft and allow a cool breeze to blow through, and in the winter, open curtains and blinds to allow sunlight to heat a room naturally in the afternoon.
Small changes like these can make a big impact and help property owners save money at home and at work while preparing for greater energy price increases in the future.
Take Control of Your Energy Future
Energy efficiency is about more than just saving money; instead, it’s about future-proofing your home or business. It’s clear that energy costs in Australia are continuing to climb, and waiting for them to drop is simply not a sustainable strategy. The good news is that you have the power to make meaningful changes today.
By understanding the forces driving these increases, assessing your current usage, and adopting smarter, more efficient systems, you can take greater control of your energy consumption and reduce your exposure to future price hikes while potentially earning payback money in return. Investing in solar solutions and energy-efficient appliances can help you lower your bills and reduce your carbon footprint while making small behavioural changes can have a lasting impact on your bottom line.
As Australia continues its transition toward renewable energy, households and businesses that act now will benefit most from long-term stability and independence. Start by exploring how solar and energy-efficient upgrades can work for you.
Get a quote from Solargain for expert advice and tailored solutions that help you save more, live sustainably, and stay ahead of the next energy price rise. You don’t have to be at the mercy of rising prices; take charge of your energy future today by finding a Solargain solar installation specialist near you!
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