If your electricity bill feels brutal, you're not imagining it — prices climbed hard between 2022 and 2025. But here's what most people don't realise heading into 2026: regulated prices are actually easing in most of the country this year.
This guide breaks down what's really on your bill, where prices are heading in 2026, and the levers that actually bring the number down.
Are Electricity Prices Going Up or Down in 2026?
Both, depending on where you look. After several years of steep rises, the regulated benchmark prices for 2026–27 (from 1 July 2026) are falling in most regions — down roughly 3.4–5% in NSW and around 7.2% in South East Queensland. South Australia is the exception, with flat-rate prices up a little (about $33 a year), though time-of-use prices fall there too. Victoria's regulated offer is also easing.
So the trend has turned — but bills are still high in absolute terms, because the falls come off several years of big increases. Usage rates still sit around 28–45 cents per kWh, plus a fixed daily supply charge.
What's Actually on Your Bill
Three things drive what you pay:
- Usage charge — cents per kWh for the power you use. The big one.
- Supply charge — a fixed daily fee just for being connected, regardless of usage.
- Tariff type — flat rate, time-of-use (peak/shoulder/off-peak), or demand. If you're on time-of-use and use a lot in the evening peak, you pay premium rates.
Not sure how to read yours? Our guide on reading your electricity bill walks through every line.
Why Yours Might Be Especially High
Beyond general usage, the most common culprits are being on an expensive standing offer and a peak-heavy usage pattern. The regulator's safety-net price (the Default Market Offer) is not the cheapest deal available — yet around 37% of customers, nearly 2.5 million households, are paying at or above it, and hundreds of thousands are paying more than 10% over. Big loads like ducted air conditioning, a pool pump, or an EV charging in the evening also push the number up fast.
What Actually Lowers the Bill
- Switch plans. Market offers are often up to 20% below the default. Compare free at Energy Made Easy (or Victorian Energy Compare in VIC).
- Shift usage to off-peak or daytime if you're on time-of-use.
- Use the new Solar Sharer offer. From 1 July 2026, eligible smart-meter households in NSW, SE QLD and SA - including renters, no solar needed - get three hours of free electricity during the midday solar peak.
- Add solar. Power you generate and use yourself is worth the full retail rate you'd otherwise pay - the single biggest lever for most homes.
That last point is the key one. With usage at 28–45c/kWh and feed-in tariffs low, the value of solar in 2026 is in self-consumption — using your own power during the day instead of buying it. For most households that's worth far more than any plan switch.
See what solar would knock off your bill
Upload your electricity bill and SolarBill reads your actual usage, then estimates how much a right-sized system would save you. Free, 60 seconds, no account.
Scan My Bill ☀️The Bottom Line
Prices are finally easing in most regions in 2026, but bills are still high — and the levers you control matter more than the headline. Make sure you're on a competitive plan, shift what you can into daylight hours, and look hard at solar, because using your own power is the biggest saving available to most homes.
Start by understanding your own numbers: upload your bill to SolarBill and see your usage and your solar savings potential in about a minute. To dig into the savings side, see how much solar can save you.
Find your biggest saving
Personalised system size and estimated savings from your real electricity bill. Free, no account required.
Try the Free Calculator ☀️SolarBill is a free solar calculator for Australian homeowners. Price figures are indicative for 2026 and vary by region, retailer and plan - always compare current offers for your address.