In 2026, the cheapest electricity plan depends on a combination of location, usage, and tariff type. A Looking for the cheapest electricity plans in Australia for 2026? This homeowner guide explains how to find lower-cost electricity plans based on where you live and how your household uses electricity.
Electricity prices vary widely by state, tariff type, and usage pattern. Many households remain on higher-priced or default plans simply because they have never compared alternatives. In 2026, finding a cheap electricity plan is less about choosing a single “cheapest provider” and more about choosing a plan that matches your household’s usage.
This guide shows you how to compare electricity plans using current regulator benchmarks and your own bill, so you can quickly identify whether you are paying more than necessary and what to do next.
Cheapest Electricity Providers in Australia (2026)
There is no single cheapest electricity provider for every household. The cheapest electricity plan depends on your postcode and how you use power at home.
The biggest factors are:
- Where you live: prices vary by state and network area
- How much you use: low-usage and high-usage households can suit different plans
- When you use electricity: day versus evening matters on time-of-use tariffs
- Your setup: solar, batteries, and EV charging can change what “best value” looks like
- Your tariff type: flat rate, time-of-use, or demand tariffs can produce very different bills
That’s why this guide focuses on finding the cheapest plans by state and household profile, rather than naming one provider as “the cheapest” for everyone.
Use the live comparison tool below to see the cheapest electricity plans available for your postcode and usage:
What “Cheap” Electricity Really Means
A cheap electricity plan is not just about the lowest headline rate.
The best-value plan for most households balances:
- Low usage rates (c/kWh)
- A reasonable daily supply charge
- A tariff that matches how you actually use power
- Competitive solar feed-in tariffs (if you have solar)
- No unnecessary lock-ins or expiring discounts
Learn what “cheap” really means: Guide to Cheapest Electricity Plans & Providers in Australia‘
State-by-State Electricity Comparison: The Best Rates Near You
Electricity prices and feed in tariffs vary significantly by state, making it crucial to compare energy providers based on your location. Below, we break down the best strategies for securing a cost-effective electricity plan, factoring in pricing, government incentives, and solar benefits across different Australian states.
See more in depth here:
📍 Electricity Comparison NSW
📍 Electricity Comparison QLD
📍 Electricity Comparison VIC
📍 Electricity Comparison SA
Each guide covers:
- Cheapest electricity providers per state
- Best solar feed-in tariffs available
- Government rebates and incentives
Find The Best Solar Feed-in Tariffs in Australia by State
- Best Solar Feed-in Tariffs NSW
- Best Solar Feed-in Tariffs QLD
- Best Solar Feed-in Tariffs VIC
- Best Solar Feed-in Tariffs SA
Learn more: See our Homeowners guide to feed in Tariffs in Australia
Average Electricity Usage and Costs by State (Australia, 2026)
If you are wondering whether your electricity bill is high, start by comparing your household’s annual electricity usage (kWh) and total cost against a consistent benchmark for your state.
The figures below use official regulator reference pricing as a baseline. These benchmarks reflect what households may pay on default or reference offers, not the cheapest market deals. That makes them a reliable sense check and a good indicator of whether comparing plans could reduce your bill.
| State or territory | Typical household usage (kWh per year) | Typical annual electricity cost (AUD, reference offer) |
|---|---|---|
| New South Wales (NSW) | 3,900 | $1,965 to $2,741 |
| Queensland (QLD) | 4,600 (SEQ benchmark) | About $2,143 |
| Victoria (VIC) | 4,000 | About $1,675 |
| South Australia (SA) | 4,000 | About $2,301 |
| Australian Capital Territory (ACT) | 6,500 | About $2,336 |
| Tasmania (TAS) | 7,254 (median household) | Varies by tariff type |
| Western Australia (WA) | Varies by household | Regulated tariffs apply |
| Northern Territory (NT) | Varies by household | Regulated tariffs apply |
How to interpret these numbers
- If your usage is much higher than the typical figure for your state, a higher bill is often explained by larger homes, electric heating or cooling, pool pumps, or EV charging.
- If your usage is similar but your bill is higher, you may be on a default plan, a higher-priced offer, or a tariff that does not suit how you use electricity.
- This table is a benchmark, not a target. The most accurate comparison always uses your own bill data.
Where these benchmarks come from
These figures are based on regulator reference prices that exist specifically to help Australians compare electricity costs fairly:
- NSW, QLD and SA use the Default Market Offer (DMO).
- Victoria uses the Victorian Default Offer (VDO).
- ACT uses the ICRC reference pricing.
- Tasmania household benchmarks come from the Tasmanian Economic Regulator’s typical customer reporting.
How to Compare Electricity Providers & Reduce Costs
Step 1: Understand Your Current Usage & Costs
Before switching, review your latest electricity bill to check:
- Average monthly usage (kWh)
- Your provider’s rates & fees
- Discounts or rebates available
Step 2: Compare Key Plan Features
| Feature | Why It Matters |
| Usage Rates (c/kWh) | Determines your total electricity costs. |
| Daily Supply Charge | A fixed fee you pay daily, regardless of usage. |
| Green Energy Options | Some providers offer 100% renewable electricity. |
| Discounts & Promotions | Look for pay-on-time or sign-up bonuses. |
| Contract Terms | Compare fixed vs. variable rates, contract length, and exit fees. |
Step 3: Use Our Electricity Plan Comparison Tool
Enter your postcode to find the best available deals in your area.
Step 4: Switch to a Better Plan
Once you’ve found a better offer, switching is hassle-free. Most all providers will handle the transfer without service interruptions.
Electricity Plans for Solar, EVs & Smart Homes
When Paying Slightly More Makes Sense
While “cheapest” plans often get the spotlight, households with solar panels, electric vehicles, or smart meters may get better long-term value from specialised electricity plans. These aren’t always the lowest on paper — but can deliver significant savings if aligned with your setup.
Plan types worth considering:
- Solar-Bundled Plans – Higher feed-in tariffs when you buy solar through the provider (e.g. Origin).
- EV Charging Plans – Off-peak pricing designed for overnight vehicle charging.
- Virtual Power Plant (VPP) Plans – Battery owners earn credits for feeding excess energy into the grid.
- GreenPower Add-ons – Choose 10–100% renewable energy without installing solar.
- Time-of-Use Plans – Smart meter users can save by shifting usage to cheaper times of day.
Tip: These plans may not look the cheapest at first glance, but they often outperform basic plans over the long term for solar-savvy, tech-enabled homes.
How to Switch Electricity Providers
- Compare Your Current Plan – Check your usage, rates, and discounts.
- Find a Better Deal – Use our electricity comparison tool to find the best rates.
- Check for Exit Fees – Some contracts may charge an early termination fee.
- Sign Up with a New Provider – Submit your postcode for a seamless switch.
- Wait for the Switch to Complete – It typically takes 1-2 billing cycles.
How to Reduce Your Power Bill
If you’re looking to cut down on your electricity costs, try these strategies:
- Switch Electricity Providers: Review and switch plans every 12 months to avoid loyalty penalties.
- Install Solar Panels & Maximise Solar Self-Use: Run appliances during daylight hours using solar.
- Use Reverse-Cycle Air Conditioning Efficiently: Set to 24°C cooling / 18–20°C heating to minimise running costs.
- Install LED Lighting: Replace all bulbs with LEDs — uses up to 80% less power.
- Seal Gaps and Insulate: Stop drafts around doors, windows, and add ceiling insulation.
- Optimise Hot Water Systems: Lower the thermostat to 50°C or upgrade to a hot water heat pump unit.
- Upgrade to Energy-Efficient Appliances: Look for 4–6 Star rated fridges, washers, dryers, and aircons.
- Use Smart Plugs and Timers: Cut standby power use from TVs, consoles, chargers and modems.
- Shift Usage to Off-Peak Times: On time-of-use tariffs, run appliances during cheaper night rates.
- Apply for Government Rebates: Access solar, battery, efficient appliance, and upgrade incentives.
Why Compare Electricity Plans?
- Lower Energy Bills: Switching providers can cut costs by securing better rates and discounts.
- Transparent Fees: Avoid hidden charges like exit fees and late payment penalties by comparing options.
- Avoid Expensive Default Plans: Many households unknowingly pay more on default market offers (DMO/VDO).
- Better Plan Features: Some providers offer no lock-in contracts, flexible pricing, and bill smoothing options.
- Solar & Green Energy Options: Maximise your savings with higher solar feed-in tariffs and renewable energy plans.
- Government Rebates & Incentives: Each state offers concessions & rebates that reduce electricity costs.
Common Mistakes When Switching Energy Providers
Switching electricity providers can deliver major savings — but only if you avoid the most common pitfalls.
Before switching, homeowners should always:
- Check for Exit Fees and Lock-Ins: Review contract terms carefully to avoid early termination penalties and unexpected benefit expiries.
- Compare Total Costs, Not Just Discounts: Focus on the estimated annual cost, not headline percentage discounts that may hide inflated rates.
- Choose the Right Tariff Type: Match your usage pattern (steady, night-heavy, or peak-demand) to the right plan (Flat Rate, Time-of-Use, or Demand Tariff).
- Watch for Hidden Charges: Review the Energy Price Fact Sheet for extra fees like paper billing or card payment surcharges.
- Maximise Solar Benefits Carefully: Solar households must balance low grid rates with competitive feed-in tariffs, depending on their energy export habits.
- Confirm Switching Timelines: Know whether you have a smart meter for faster switching, or if you’ll need to wait for a scheduled meter read.
- Review GreenPower Options: If renewable energy matters to you, compare GreenPower availability and costs across providers.
- Secure Available Rebates: Check your eligibility for federal and state energy concessions before switching, and ensure your new provider supports them.
- Choose Providers with Good Billing and Support Options: Flexibility in billing and strong customer service can make managing your account much easier.
- Recompare Annually: Energy prices and discounts change often. Set a reminder to review your plan every 12 months to stay on the best deal.
Switching is one of the simplest ways to reduce your electricity costs — but a smart, well-informed switch makes all the difference.
Learn More: Top 10 Mistakes to Avoid When Switching Electricity Providers in Australia
Compare Electricity Plans & Save
Electricity prices change regularly, and the only reliable way to know whether you are overpaying is to compare plans using your own usage data.
Comparing electricity plans does not affect your power supply, and switching retailers does not interrupt service. The process is handled between retailers.
Use the comparison tool below to see electricity plans available for your postcode and usage.
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