What Is The Average Electricity Bill in Australia [2024 Guide]

What Is The Average Electric Bill in Australia?

Most electricity suppliers in Australia charge between 25 and 45 cents per kilowatt hour, but this rate can vary depending on where you live. Based on AER (Australian Energy Regulator) benchmark prices, the average monthly electricity bill for a resident across Australia will be around $125 ($1,500 per year) as of April 2024.

While the averages provide a general idea of the cost of electricity, only some electricity bills will match (or come close to) that number. Electricity bills in Australia can vary depending on factors such as how much electricity you use, which electricity supplier you choose and where you live.

In Australia, electricity prices vary from state to state, so average electricity bills also vary. Many factors contribute to these differences, including local energy sources, government policies, and competition in regional markets. The following content presents data and information about the average electricity bill in Australia by state.

Average Electricity Costs in Each Australian State 

The table below shows the average electricity price for each state in Australia. After comparison, Western Australia has the lowest electric price, whereas Tasmania has the highest.

(Data Source: Finder)

Australian Capital Territory

The Australian Capital Territory is leading the new energy transition, offering a range of incentives for solar installations and energy conservation efforts and targeting 100% renewable energy, affecting local electricity prices.

Despite this, the average level of electricity is still relatively high, with households paying about $1,284 per year for electricity. However, some families in the Australian Capital Territory will benefit from lower electric costs as the government promotes green energy policies.

New South Wales

New South Wales residents pay about $1380 in electricity bills each year. The state's electricity comes from various sources, including coal, gas, and renewable energy, contributing to competition in the electricity market.

New South Wales' energy policy is designed to support renewable energy, affecting pricing and availability. Thus, it is even more important for New South Wales households to compare plans to decide which electricity supplier and electricity plan best suits their budget.

North Territory

The cost of electricity in the Northern Territory is affected by distance and sparse population, which increase distribution costs. Despite this, the Northern Territory Government continues to provide grants and subsidies to help residents with high electricity bills. People in the Northern Territory are increasingly interested in solar power to save money for their families.

Queensland

Queensland residents are likely to spend around $1,260 on electricity each year. Queensland will benefit from several solar energy systems, which affect the cost of electricity. Queensland also encourages households to look into solar options and energy-efficient appliances to save on electricity bills.

South Australia

South Australian residents can pay high bills of around $1408 a year for their electricity bills. South Australian residents can use various solar and battery storage incentives to offset higher electricity costs.

Tasmania

Tasmania's reliance on hydropower has significant implications for energy costs and sustainability. Due to abundant renewable energy, electricity costs per kilowatt-hour can be lower in Tasmanian households using the latest technology than in some mainland states. However, Tasmania's climate may result in higher overall electricity usage. As a result, the average electricity bill paid per year is also about $1,488.

Victoria

Victoria households can expect to pay about $1,280 per year for electricity. Victoria's electricity market is highly competitive, with various discounts and offers that can significantly affect the cost of electricity and your electricity bill. The Victorian Government encourages residents to compare options to decide on the right electric plan option for their home.

Western Australia

The average cost of electricity in Western Australia is high at around $1,184 per year. The state's size affects electricity distribution, transportation, and supply costs. Western Australian residents may benefit from government subsidies and rebates to reduce energy costs. Given the abundance of sunshine in the state, solar systems are an excellent option for many households.

See the table below for more detailed data on each Australian state's monthly and annual electricity costs.

(Data Source: Canstar Blue Research)

Why is the Electric Bill So High in Australia?

The cost of living in Australia has never been lower, but rising electricity prices worry many people. New data from the Australian Energy Regulator shows wholesale electricity prices in Australia are three times lower than two years ago, but electricity supplier prices are still rising. 

There are multiple reasons Australia's average electricity bill is so high, including aging infrastructure, transmission costs and environmental sustainability policies.

1. Reliance on Traditional Fuels

Australia's electricity system relies heavily on expensive fossil fuels. Most of Australia's electricity is still produced by coal and wind power stations. However, with coal and gas prices rising in international markets in recent years, Australia will continue to experience spikes in electricity prices.

2. Ageing Infrastructure

Infrastructure aging across the country is crucial to rising electricity prices. Coal-fired generators currently provide most of Australia's electricity, which is old, unsafe and inefficient. Australia's electricity infrastructure, including power stations, transmission lines and distribution networks, requires significant investment to maintain reliability and meet growing demand. The costs of upgrading and maintaining this electrical infrastructure are passed on to consumers, resulting in higher electricity prices.

3. Transmission Costs

Transmission is a cost of electricity that most people don't think about. However, electricity delivery costs account for 40% of a typical household's electricity bill because the delivery of electricity requires various infrastructures, including poles and wires. (Houses need conduits such as poles and wires to receive electricity from the network.)

4. Climate and Environmental Policy

Australia has committed to reducing carbon emissions due to bushfires and drought and has implemented various climate and environmental policies. While these climate and ecological policies help expand renewable energy, they can also affect electricity prices.

Australia's extreme weather conditions can affect household electricity bills. In the colder months, heating demand surges, leading to increased electric consumption, while high temperatures in the summer cause air conditioners to run overloaded, increasing electricity consumption.

5. Electricity Plans and Suppliers

Electricity providers can set their electricity prices and plans. Therefore, electricity providers have different prices and plans, resulting in other bills.

Due to Australia's reliance on coal-fired power generation, electricity prices are higher than in many countries, leading to higher electricity bills for residents. Electricity markets vary across Australia so that electricity prices can vary.  

For example, Melbourne's electricity prices differ from those in Sydney, Brisbane or Adelaide. Some electricity suppliers in Australia may charge higher prices during periods of high electricity demand. Using more electricity during these peak times can result in higher electricity bills.

6. Electricity Usage

Generally, a household's electricity usage will affect the total bill. Everything from the number of people to the types of appliances and frequency of use can affect a household's electricity. Small families of two or three people are less potent than large families of four or five.

The energy efficiency of appliances and how often they are used can also affect how much electricity is consumed, which can increase your electricity bills, especially since older appliances and electronic devices tend to be less efficient.

7. Government Taxes and Fees

Australia's electricity industry is highly regulated, so government taxes and fees are added to your electricity bill.

Other factors outside the home's control affect energy bills, such as the cost of producing electricity, transporting electricity, and supplier management fees.

How Do I Lower My Electricity Bill?

After knowing the average electricity bill in Australia, you may wonder how to reduce your energy costs. You have the potential to get more savings on your electricity cost.  

Suppose you've received an electricity bill higher than expected and want to cut your electricity costs. In that case, some tips will help you save money by reducing your electricity usage.

Tip 1: Select The Electricity Provider Smartly

Picking the right energy source can be challenging and take more time and effort than needed.

The price is the most critical factor in your choice of broadband service. So, take as much time as you need to find a price that works for you (and remember to keep sign-up bonuses and sales in mind).

This is where how much energy you use and the plan you choose to use electricity play a vital role. Your suitable solar feed-in tariff tells you how much you have to pay for the energy you use according to your contract. The catch is that it could be set (single rate tariff) or variable (flexible tariff).

Sometimes, what an energy company says it is and what it is are different. That difference is noticeable once you experience their customer service, which is something you should take advantage of. 

Tip 2: Wisely Choose Electric Plans

One of the easiest ways to save money on your energy bill is to choose the right electricity provider and plan. The variety of electricity providers and plans in the electricity market gives consumers more choices and better services.

The difference in price between the most affordable and highest-priced power plans might amount to hundreds of dollars annually, based on your geographical location and typical energy consumption. However, the cheapest energy plan might not always be the best for you, especially if other things are more important.

Sometimes, it's worth paying a little more for excellent customer service or cool extras. This could mean picking an energy company with a call centre in Australia, but consider what else is included.

One store might give you extra benefits, like free movie tickets, and another might give you frequent flyer points. Even if one energy company costs more, you should look at how much better they are before choosing.

The following are some of the cheapest electric plans in each state of Australia in 2024.

(Data Source: Canstar Blue)

Tip 3: Replace Inefficient Appliances

Up to 30% of the energy you use goes to your appliances. You waste energy leaving appliances on standby (with the light on). This can raise your power bill by up to 7%, or $170. Turn computers and game systems off at the wall when not in use.

By replacing an inefficient old model with a new energy-efficient one, you might save a significant amount of money, ranging from thousands of dollars, throughout the appliance's lifespan.

You can use the Energy Rating calculator to find out how much energy an appliance uses and how much it costs to run, or you can subscribe to Choice to get reviews of products written by experts.

Need help with money? The No Interest Loan Scheme (NILS) lets people borrow money to pay for things like fridges and washing machines that they need.

Tip 4: Invest in Solar Energy

Installing and using solar energy systems can provide long-term savings and environmental benefits for households looking to reduce their energy bills. With a solar energy system, most homes can better manage seasonal energy bill fluctuations and enjoy comfort without undue financial burdens.

Reducing your electricity price can be very easy if you use solar power. Buying energy from stores will be less necessary if you can make enough solar energy.

You could meet your lighting and heating needs by setting solar panels on the roof of your home or office. This will cost you a lot upfront but save you a lot of money in the long run. However, if you think installing a solar panel system is costly, you may consider investing in a solar generator to use renewable energy at a reasonable price.

Solar generators, like Jackery Solar Generator, can be an environmentally friendly energy source to reduce energy consumption and lower household electricity bills. Solar investments in electricity can benefit from various incentives, rebates, and feed-in tariffs, increasing home value while saving energy.

Tip 5: Insulate Your Home

Insulation makes your home more energy-efficient. It helps you save money on cooling and heating costs while keeping your home at a comfortable temperature in the summer and winter. Insulation can save you 45% of your yearly power bill.

Tip 6: Change Personal Habits

Think about any habits or preferences that might affect how much energy your home uses - plan for these personal things to help you save money on your energy bills. You can make it a habit at home to turn off the lights when no one is in the room. In the long run, something this easy can make a huge difference.

Jackery Solar Generators for Reducing Electric Bills

Implementing a solar energy system in your residence provides numerous advantages. Jackery is a renowned manufacturer in the solar industry, focusing on producing top-notch solar equipment like solar generators, solar panels, and portable power stations.

Jackery Solar Generators offer a reliable and uninterrupted power supply for your household appliances to reduce your electric bills in Australia.  

In conjunction with Jackery Solar Panels, a Portable Power Station facilitates the efficient conversion and storage of more sunlight for future use. By having numerous output ports, you can charge multiple appliances at the same time.

Additionally, a Portable Power Station offers several options for recharging, such as Jackery Solar Panels, carports, wall outlets, or other electric generators.

Jackery Solar Generator 1000 Plus

The Jackery Solar Generator 1000 Plus is the best alternative for comparable portable power stations due to its exceptional output. It can aid in camping, off-road driving, home emergencies, and other circumstances. It is the all-in-one solar generator for your life due to its versatility and size. 

Supports up to three additional battery packs, bringing the total capacity to 5kWh and providing 1-3 days of home backup power. Enjoy the outdoors while camping. A solar generator can power your phone, projector, and speakers in the great outdoors, bringing both comfort and convenience. Stay connected and keep critical devices running with reliable backup power, assuring safety and convenience in an emergency.

The Jackery Explorer 1000 Plus portable power station, with a 10-year lifespan and a Lithium Iron Phosphate (LiFePO4) battery, provides a consistent voltage and pure sine wave to ensure the safety of all your electrical gadgets. Additionally, the innovative ChargeShield technology and consistent power delivery avoid equipment damage.

Jackery Solar Generator 2000 Plus

Jackery has unveiled the Solar Generator 2000 Plus, a cutting-edge portable power solution with exceptional performance. Thanks to its substantial capacity and formidable power output, this device can sustain the operation of standard domestic appliances for several weeks and fulfil all the power needs associated with outdoor adventure or professional activity.

The Jackery Solar Generator 2000 Plus allows adding extra battery packs, which boosts the capacity from 2 kWh to a remarkable 12 kWh, thus enhancing the solar charging capabilities significantly. With the ability to be expanded to 3000W, this solar product offers a 30% higher rated power than other 2 kWh solar products available in the market. Practically all essential household equipment is energised.

The Explorer 2000 Plus is an industry's pioneering add-on battery pack that can be recharged using solar panels. This feature enhances versatility, improves charging efficiency, and reduces charging time. The LiFePO4 battery, with its sophisticated technology, guarantees a lifespan of 10 years, even with daily usage limited to once per day. Jackery solar panels generate more energy over their lifespan due to their exceptional solar conversion efficiency, reaching up to 25%.

Average Electric Bill in Australia FAQs

The following are the frequently asked questions about the average electric bill in Australia.

1. What does a typical electricity bill consist of?

A typical electricity bill reflects the various costs and profit components incurred by electricity suppliers when supplying electricity to customers.

• Energy costs (including purchasing electricity from the wholesale market, etc.)
• Network costs (including transmitting electricity through the grid, etc.)
• Retail costs (including customer service costs, etc.)
• Other costs

2. Which household appliances use the most electricity?

Some appliances in your home use more energy than others, which can increase your monthly electricity bills.

3. Does household size have an impact on electricity bills?

The effect of home size on electricity bills must be considered, mainly due to high energy consumption due to the high use of heating, cooling, lighting and appliances.

Larger households tend to require more space, resulting in higher heating and cooling costs for larger areas. At the same time, the increased use of appliances and electronic devices also improves the overall electricity bill.

The figure below shows the cost of electricity for each household size in Australia.

(Data Source: Canstar Blue Research)

4. Are electricity costs related to the age of the user?

Average electricity costs usually vary by customer age. The data in the chart is an overall average and is for reference only.

(Data Source: Canstar Blue Research)

So, do your electricity bills get cheaper as you get older? Yes, some electricity suppliers offer additional rates to senior cardholders. However, your electricity bill may vary depending on several factors. For example, younger people may live in larger homes with more significant electricity needs, while older energy consumers are more likely to install solar systems.

Final Thoughts

Knowing the average electricity bill can help Australians see if they are in line with others in their state. If not, there may be other reasons why the electricity bill may increase. Electricity bills in Australia vary from state to state and are influenced by consumption habits, household size and the type of electricity used.

Understanding the average electricity bill in Australia is an excellent start if you've been exploring how to save money on your electricity bill. Also, we recommend Jackery Solar Generator to save costs using solar energy.