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The average energy bill in Australia is on the rise.
The ACCCs most recent Inquiry into the National Electricity Market published in June 2024 found that the average electricity price for residential customers increased by 14% between September 2022 and September 2023. The average quarterly household bill in Sydney is now around $590.
In a bid to combat rising electricity rates, we’ve compiled a list of ten actionable things that Australians can do to reduce their environmental footprint and save on their energy bills in 2025 and beyond.
1. Check your energy plan & compare rates
Before you do anything else, review your energy plan and compare rates with different providers based on your unique energy usage patterns.
When it comes to choosing the best energy provider, don’t just compare rates and estimates. Yes, some providers are (in general) cheaper than others, but comparing different energy plans it’s important to consider your household usage patterns.
Knowing when you use electricity, can help you to select the right plan – typically either a single rate plan or a Time of Use (TOU) plan. Once you’ve lived in your home for a period of 12+ months, you’ll have a good ‘baseline’ of your energy consumption patterns to start comparing rates and plans.
For residents of South Australia, Victoria, New South Wales and the ACT, winter is generally the most expensive time of year for energy bills due to heating costs. Conversely, for residents of Queensland, Northern Territory, and Western Australia, summer tends to be the most expensive season due to high cooling costs.
There is an abundance of comparison websites online which can run the numbers for you. And while these are a useful starting point, we would recommend looking outside of these sites as they are limited to their “partner” providers and will not include all options.
2. Switch off appliances when not in use
Switching off appliances when they are not in use can save up to 10% on your electricity bills according to the Australian Consumers’ Association (Choice).
In the same way that we don’t leave a car idling in the garage waiting for its next outing, leaving your appliances in a perpetual state of “on” drains power and costs money. Unplugging large appliances like your washing machine, dryer, television, and computers can reduce your energy bill by up to 10% each month.
By switching appliances off, you eliminate the potential for appliances to run “hot”. That means that even when they’re not in use, they can contribute heat to the room.
3. Insulate your home
Insulating your home may not be the cheapest way to save on your energy bills, but it is one of the most effective.
Heating and cooling homes is the single biggest contributor to energy usage in Australia. Home insulation minimises heat transfer which effectively keeps the households warmer in winter and cooler in summer.
Research from the CSIRO found that homes with ceiling, wall, and floor insulation can save as much as 45% on their energy bills when compared to a home with poor insulation.
The Nationwide House Energy Rating Scheme (NatHERS) introduced back in 1993 and adopted nationwide in 2004, requires that new homes meet a minimum level of energy efficiency. NatHERS underscored the importance of proper home insulation and provides a benchmark for all new homes built in Australia.
If you live in a home constructed prior to 2004, it is unlikely to have proper insulation and is therefore likely to be less energy efficient than a home constructed after the adoption of NatHERS.
4. Optimise your home lighting
Lighting can account for up to 10% – 15% of household electricity bills. Making the switch to energy efficient lighting can see a big reduction in your bills.
LEDs are the gold standard for energy efficient lighting in the home. Compared to halogen light bulb, LEDs use around 75% less power and last anywhere from 5 to 10 times longer. LEDs can payback the cost of their installation in as little as one year.
When comparing lighting options and potential savings, it’s useful to understand the following terminology:
Wattage:
Wattage refers to the energy consumption of a bulb measured in watts. Lower wattage bulbs use less energy – so look for bulbs that have a lower wattage rating than your current bulbs.
Lumens:
Lumens or lumen output is the brightness of the bulb. When comparing bulbs, it’s important to look at lumens as a baseline for how much light is being emitted by each bulb. Lumens divided by wattage gives you an idea of how efficiently a bulb converts energy into light.
Lifespan:
Lifespan has less to do with energy consumption and more to do with total savings. While wattage and lumens are key indicators of efficiency, a longer lifespan means long-term savings through less frequent replacements and reduced maintenance costs.
5. Invest in energy efficient appliances
Appliances can account for as much as 25% of home energy use.
Opting for energy efficient appliances like fridges, washing machines, dryers, televisions, and other appliances can lead to significant savings on your energy bills.
For Australian consumers, the Australian Government regulated Energy Rating Label system provides a straightforward way to shop for energy efficient appliances. The mandatory labels are displayed on the following new products:
- Non-ducted household air conditioners
- Clothes dryers
- Clothes washers
- Computer monitors
- Dishwashers
- Household refrigerators and freezers
- Pool pumps
- Televisions
It is only mandatory to display the Energy Rating Label in physical retail outlets, so be wary when shopping online and do your own due diligence.
6. Insulate with blinds and curtains
Doors, curtains and blinds are fixtures that can serve as barriers to keep your home warm in winter and cool in summer. Curtains help to keep warm air in during winter and hot air out during summer. External blinds are particularly effective in the summer months.
Keeping doors closed within the house helps to create buffer zones and stop warm air escaping in cooler months.
7. Run appliances during off-peak electricity times
If you are on a Time Of Use (TOU) electricity plan, or if you have solar panels, you are best to try and run your appliances between the hours of 9am – 3pm. As CEO Helen Oakey of not-for-profit organisation Renew explains, “Check your appliances. Run them as efficiently as you can – off peak or when your own solar is generating.”
You will pay less for electricity during these hours on a TOU plan, or if you have solar panels, you can self-consume your solar energy to power these appliances.
Dishwashers, washing machines and pool filters are all appliances that can save you money if you use them during off-peak times.
8. Use economy mode on your appliances
Using eco-mode, energy saving mode or low power mode – whatever the manufacturer calls it – can lead to reductions in your energy use and savings on your electricity bills.
Eco-mode is especially important on high-energy use appliances like fridges, dryers, and dishwashers where the Australian Consumers’ Association (Choice) suggests consumers can save as much as 30% on their energy usage by opting for eco-mode.
For washing machines where up to 90% of total energy consumption is used to heat the water, opting for eco-mode can make a significant difference to the cost.
9. Audit your fridge and freezer temperatures
The humble refrigerator is one of the most energy sapping and expensive appliances to run. Danielle King, Director and Sustainability Advisor at Green Moves recommends checking your fridge is running at 4°C and the freezer at -18°C and, not over or under cooling.
King adds “For those with fridges in the garage, during low use times (i.e. over winter), move any remaining contents to the main fridge and turn it off. It can then be turned on again at the start of summer ready for BBQ season. Remember to leave the door slightly ajar to ensure it doesn’t get smelly.”
10. Install Solar Panels
Every which way you look at it, solar panels are a good investment. Not only do they reduce your electricity bills, but they will also reduce your carbon emissions. Payback times vary between states and really depend on how much electricity you use, but typically can be between 4 – 7 years.
For a popular 6.6kW system size, savings can range between $1,100 – $1,800 per year. For accurate results, we recommend using our solar panel savings calculator.
Final thoughts
Consider your energy usage and think of ways that you can reduce it. Many of the action items on our list require zero or, very little, initial outlay and can be achieved by simply marking smarter, more thoughtful decisions about how you use electricity in the home.
Reducing your energy usage will lead to savings that lower your electricity bills and help contribute to a more sustainable future.
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