Looking for the cheapest electricity plans in Australia? This comprehensive guide breaks down what “cheap” really means, what to watch out for, and how to confidently compare providers and plans to get the best deal. Whether you’re in NSW, QLD, VIC, or SA, we’ll help you switch smarter and save more.
Cheapest Electricity Plans in Australia by State (2025)
National and State Specific Electricity Provider & Plan Comparisons
- National Electricity Provider Comparison
- NSW Electricity Comparison
- QLD Electricity Comparison
- VIC Electricity Comparison
- SA Electricity Comparison
Why Finding the Cheapest Electricity Provider Matters
- Prices fluctuate often due to wholesale markets and regulatory changes.
- Many Australians are overpaying due to loyalty tax or confusing contracts.
- Comparing providers annually can save households hundreds per year.
- The Australian Energy Regulator (AER) provides regulator-backed, real-time rates.
Pros of Choosing the Cheapest Electricity Provider
- Lower bills upfront: The primary appeal is cost savings.
- No lock-in contracts: Many cheap providers offer flexible terms.
- Digital-first options: Simpler account setup, app access, and online management.
- Promotional rates: Special offers for new customers.
Cons of Only Focusing on Price
- Limited customer support: Cheaper providers may cut service costs.
- Hidden fees: Credit card surcharges, disconnection fees, or paper billing fees can catch you off guard.
- Lower solar feed-in tariffs: Bad news for solar households exporting power.
- No renewable options: Cheap providers may not offer GreenPower.
- Temporary discounts: Great rates that disappear after 12 months.
What Australians Should Compare (Not Just Price)
Daily Supply Charge
- Fixed daily cost just to stay connected to the grid.
- Varies by provider, usually between $0.75–$1.60/day.
Usage Rates (c/kWh)
- The actual cost of power you consume.
- Important to compare both flat rate and time-of-use pricing.
Solar Feed-in Tariffs
- Crucial if you export solar.
- Compare cents per kWh returned to you.
Looking to maximise your solar returns? See our guides on:
- Best NSW Feed-in Tariffs
- Best QLD Feed-in Tariffs
- Best VIC Feed-in Tariffs
- Best SA Feed-in Tariffs
- All State Feed-in Tariffs
Discounts & Conditions
- Direct debit, pay-on-time, and online-only discounts.
- Always check what the base rate is without the discount.
Exit Fees & Benefit Periods
- Some low-cost plans revert to expensive rates after 12 months.
- Avoid penalties for switching again.
Hidden Charges
- Watch out for:
- Paper bill fees
- Late payment fees
- Connection/disconnection fees
- Credit card surcharges
Green Energy Options
- Some plans include 10%–100% GreenPower.
- Budget plans may exclude renewable energy options.
Customer Support Quality
- Cheaper plans may come with limited service hours or online-only support.
- Read customer reviews and compare provider ratings.
Specialised Electricity Plans
- EV Charging Plans: Ideal if you charge your electric vehicle at home. Some providers offer reduced off-peak rates.
- Smart Meter / Time-of-Use Plans: Take advantage of off-peak pricing if you have a smart meter installed.
- Virtual Power Plant (VPP) Plans: For homes with solar batteries, these plans let you earn credits for feeding energy into the grid.
- Solar-Bundled Plans: Some retailers offer better FiTs or additional benefits if you installed solar through them.
These types of plans may not always look like the cheapest upfront but can deliver better long-term savings based on your home setup.
Mistakes Australians Make When Switching Electricity Providers
- Assuming all cheap plans are equal: Rates, fees, and terms vary greatly.
- Not checking exit fees: Can wipe out any savings if you switch early.
- Missing discount conditions: Forgetting a direct debit setup could cost you.
- Focusing only on kWh rates: High daily supply charges can outweigh low usage rates.
- Ignoring usage patterns: A time-of-use plan may backfire if you use power mostly during peak hours.
- Overlooking solar tariffs: A low FiT could reduce your overall solar savings.
- Trusting out-of-date price comparisons: Use government-regulated tools for current pricing.
How to Find the Best Cheap Electricity Plan in 2025
- Use SolarChoice comparison tables & postcode specific form fill
- Run a comparison based on your last 12 months of usage.
- Factor in supply charges, usage rates, discount eligibility, and solar returns.
- Compare actual estimated annual cost, not just c/kWh rates.
- Review your plan every 6–12 months.
Electricity Plans Designed for Solar, EVs & Smart Homes
When a Slightly Higher Plan Might Be Better Value
Not all “cheap” electricity plans offer the same long-term value — especially if you’ve invested in solar panels or own an electric vehicle. Some retailers offer tailored plans that may cost slightly more per kWh but deliver greater overall savings or flexibility.
Types of special-purpose electricity plans to consider:
- Solar-specific plans:
Providers like Origin offer higher solar feed-in tariffs if you purchase your solar system through them. Others may provide solar battery integration or solar performance guarantees.
→ Compare the best solar feed-in tariffs in your state - EV charging plans:
Some retailers now offer off-peak EV charging plans with cheaper overnight rates. These are ideal if you charge your electric vehicle at home. - Virtual Power Plant (VPP) plans:
Plans like Energy Locals’ or AGL’s VPP options allow solar battery owners to join a network and earn bill credits by supplying power back to the grid. - GreenPower add-ons:
If you care about your carbon footprint, some plans allow you to opt into accredited GreenPower — ranging from 10% to 100% renewable energy sourced from wind or solar. - Smart meter/time-of-use plans:
If you have a smart meter, you may be eligible for time-of-use pricing — which can lower bills if you shift usage to off-peak periods (e.g. running your dishwasher or EV charger at night).
Pro tip: These plans may not always appear as the “cheapest” at first glance, but if they align with your home setup and usage habits, they often deliver greater long-term value
Final Thoughts
The cheapest electricity provider isn’t always the best – but comparing regularly is essential. The ideal plan balances cost, flexibility, and the features that matter most to your household. Whether that’s solar performance, GreenPower, or flexible billing — this guide gives you the clarity to choose confidently.
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Marketing Manager at Solar Choice
With half a decade experience in the solar energy industry, specialising in business strategy and marketing for solar companies. He has worked with top solar distributors in Canada and now collaborates with solar manufacturers and installers across Australia via Solar Choice, Australia's leading solar comparison platform. With degrees in business technology, science, and marketing, James combines in-depth market insights with technical knowledge, positioning him as a trusted authority in renewable energy.
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