How to Lower Your Power Bill in Australia: Tips That Work

Opening the power bill shouldn't feel like bracing for bad news, but for a lot of Australian households, it does. The good news is that you have more control than you might think. Some of the biggest savings come from a five-minute phone call or a change to how you use a couple of appliances, not from buying anything at all.

This guide walks through practical ways to lower your power bill, starting with free changes you can make today and moving through to bigger upgrades that keep paying you back for years. Pick the ones that suit your home and budget, and you could knock a real chunk off your next bill.

First, know where your power actually goes

It's hard to cut costs if you don't know what's using the energy. In a typical home, the split looks roughly like this:

• Heating and cooling: around 40%
• Appliances (fridges, washing machines, TVs and so on): around 25%
• Hot water: around 20%
• Cooking and lighting: around 10%

That tells you where to focus. Heating, cooling and hot water together make up well over half of most bills, so small changes there go a long way. Turning off a light helps, but turning the air con down a couple of degrees helps a lot more.

Step 1: Lower your power bill by checking your energy plan

This is the single easiest way to lower your power bill, and it costs nothing. Many people stay on the same plan for years without checking, and loyalty rarely pays in the energy market.

1. Grab your latest bill and note your usage rate (cents per kWh), daily supply charge and any solar feed-in tariff.
2. Compare plans on the free government comparison site Energy Made Easy (energymadeeasy.gov.au), or Victorian Energy Compare if you live in Victoria. Neither charges a fee or earns commission.
3. Call your current retailer and ask if they can match a cheaper offer. Sometimes they will, saving you the hassle of switching.
4. Check discounts and concessions. If you hold a pension, health care or concession card, you may be eligible for state energy rebates.

Time-of-use plans and free midday power

If you have a smart meter, a time-of-use plan can save money if you shift heavy power use away from the evening peak. From July 2026, retailers in NSW, South East Queensland and South Australia must also offer a Solar Sharer plan, which includes three hours of free electricity in the middle of the day. Victoria has its own similar scheme. These plans suit households that can run the dishwasher, washing machine, pool pump or hot water during those hours. They're opt-in, and they don't suit everyone, so compare the full price of the plan before switching.

Step 2: Heating and cooling (the biggest win)

• Set sensible temperatures. Around 18 to 20°C in winter and 24 to 26°C in summer. Each degree warmer in winter or cooler in summer can add roughly 5 to 10% to heating or cooling costs.
• Heat and cool only the rooms you use. Close doors to empty rooms and use zoning if you have a ducted system.
• Use fans first. A ceiling fan costs a few cents an hour to run and can make a room feel several degrees cooler.
• Block draughts. Door snakes and weather strips around doors and windows are cheap and make a big difference.
• Use curtains smartly. Close them on summer afternoons to block the sun, and close them at dusk in winter to hold in warmth.
• Swap old heaters. Portable bar and fan heaters are expensive to run. A reverse cycle air conditioner is usually far cheaper for the same warmth. Our heat pump guide explains why.

Step 3: Hot water

• Take shorter showers. Cutting a few minutes off each shower adds up fast across a household.
• Fit a water-efficient showerhead. It's cheap, quick to install and cuts both water and energy use.
• Wash clothes in cold water. Most of a warm wash cycle's energy goes into heating the water.
• Fix dripping hot taps.
• Check your hot water tariff. If you have an electric storage system, make sure it's on a cheaper off-peak or controlled load tariff, or set it to heat during free or solar hours.

If your hot water system is old, our gas vs electric hot water guide shows how much a heat pump or solar system could save.

Step 4: Appliances and everyday habits

• Switch off at the wall. TVs, game consoles, microwaves and chargers draw standby power around the clock. A power board with a switch makes this easy.
• Get rid of the second fridge. An old beer fridge in the garage can quietly cost a surprising amount each year.
• Keep your fridge at the right temperature. Around 3 to 5°C for the fridge and around -15 to -18°C for the freezer.
• Run full loads in the dishwasher and washing machine, and use eco settings.
• Dry clothes on the line instead of the dryer whenever the weather allows.
• Use the right cooking tool. Microwaves, air fryers and slow cookers often use less energy than the oven for smaller meals.
• Switch to LED lights. They use a fraction of the power of old halogen and incandescent bulbs and last much longer.
• Check the star rating when buying new appliances. More stars means lower running costs over the life of the product.

Step 5: Bigger upgrades that pay you back

If you own your home and want bigger, longer-lasting savings, these upgrades are worth considering:

Upgrade	Why it helps
Ceiling insulation	Keeps heat in during winter and out in summer, so heating and cooling work less
Draught sealing	Cheap and fast, stops warm or cool air escaping
Heat pump hot water	Uses around a third of the power of a standard electric tank
Reverse cycle air con	Much cheaper than portable electric heaters for the same warmth
Rooftop solar	Lets you use your own free daytime power
Double glazing	Reduces heat loss through windows, especially in cold climates

Start with the cheapest, highest-impact upgrades first. For most homes, that means draught sealing and ceiling insulation before anything else. If you already have solar, run as much as you can during daylight hours, and make sure your system is working properly. Our solar inverter guide covers the warning signs to look for.

Many states also offer rebates or discounts on efficient appliances, hot water systems and insulation, so check your state government's energy website before you buy.

Read your bill like a pro

Your bill holds clues about where you can save. Look for:

• Average daily usage, and how it compares to the same time last year
• Peak vs off-peak usage, if you're on a time-of-use plan
• Daily supply charge, which you pay no matter how much power you use
• Your feed-in tariff, if you have solar
• Any concessions that should be applied but aren't

Many retailers also have an app that shows your usage by the hour or day. Checking it for a week can reveal surprises, like a big spike overnight from an appliance you forgot was running.

Struggling to pay your bill?

If you're finding it hard to keep up, contact your retailer as early as possible. Energy retailers are required to offer hardship support, which can include payment plans and extra time to pay. You may also be eligible for state government concessions or emergency payment assistance. Asking early gives you more options and helps avoid extra fees.

Frequently asked questions

What uses the most electricity in an Australian home?

Heating and cooling are usually the biggest users at around 40% of household energy, followed by appliances and hot water. Focusing on these gives the biggest savings.

Does switching off at the wall really save money?

Yes, a little. Standby power from TVs, consoles, chargers and other devices adds up across a year. It won't halve your bill, but it's a free habit worth having.

Is it worth switching energy retailers?

Often, yes. Comparing plans on Energy Made Easy or Victorian Energy Compare takes a few minutes and can uncover a cheaper deal. You can also ask your current retailer to match it.

What is the cheapest way to heat a home?

For most homes, an efficient reverse cycle air conditioner is one of the cheapest ways to heat a room, especially compared with portable electric heaters. Good insulation and draught sealing make any heater work better.

The bottom line

You don't need to sit in the dark to lower your power bill. Start by checking your plan, then focus on heating, cooling and hot water, where most of your energy goes. Add good habits with appliances, and when you're ready, invest in upgrades like insulation, efficient hot water and solar.

Try just three or four tips from this list this month and keep an eye on your next bill. Small changes really do add up.

The information in this guide is general and current as of October 2026. Energy plans, prices and government offers change regularly, so always check the latest details with your retailer and official sources. See our disclaimer for more.