Power Bills Are Rising Again, Here’s What’s Changing, and How Households Are Responding

Australian households are being warned to brace for higher electricity bills in 2026, following the expiry of the federal government’s quarterly energy bill rebate and a series of structural changes unfolding across the energy market. Analysts from the Australian Bureau of Statistics and Westpac estimate electricity prices could rise by more than 20% between late 2025 and mid-2026, translating to hundreds of dollars in additional costs for the average household. For lower-income households, the impact is expected to be even more pronounced, as energy makes up a larger share of weekly expenses. This latest increase follows the end of the government’s $75-per-quarter energy bill discount, which officially expired in December. While the rebate provided short-term relief, economists have been clear: it didn’t reduce energy costs, it simply delayed them. As Westpac economist Justin Smirk noted, the removal of rebates means price pressures that should have appeared earlier are now flowing through all at once.

Why Energy Bills Are Rising

Several factors are converging at the same time:

  • The end of universal energy rebates, which had been suppressing headline power prices
  • Ongoing volatility in wholesale electricity markets, particularly during evening peaks
  • Rising demand as more households electrify heating, cooking and transport
  • An ageing coal fleet, creating supply risks during high-demand periods

According to the Australian Energy Market Commission (AEMC), electricity prices may ease slightly in the short term as new renewable projects come online, but without sustained investment in storage and coordination, households could face renewed upward pressure later this decade.

In simple terms: electricity is becoming more time-dependent. When you use power now matters just as much as how much you use.

The Shift Toward Daytime Power

In response to growing midday solar generation, energy retailers have been directed to introduce new plans offering three hours of free electricity during the middle of the day, starting in South Australia, NSW and south-east Queensland.

The aim is to shift household demand away from expensive evening peaks and make better use of abundant daytime solar.

Energy Minister Chris Bowen described the policy as a way to “share the benefits of cheap solar power more fairly across the grid,” including for households without rooftop solar.

But while free daytime power can reduce bills, it doesn’t solve the full problem, because most household energy use still happens after sunset.

What SunEnergy Customers Are Doing Differently

Rather than reacting to each new price rise or rebate announcement, many SunEnergy customers are taking a longer-term view of their energy use.

Across South Australia, we’re seeing households:

  • Reduce reliance on peak grid power, especially during costly evening hours
  • Actively shift usage to the middle of the day, aligning with solar-heavy pricing and free-power windows
  • Plan for the next 5–10 years, rather than chasing short-term discounts
  • Right-size their energy systems, ensuring they can comfortably cover evenings, overnight use, and future needs like EV charging and all-electric homes

This approach isn’t about cutting off from the grid entirely. It’s about control and predictability, smoothing energy costs instead of being exposed to price spikes.

As government policy moves away from blanket rebates and towards system-wide efficiency, this kind of planning is becoming increasingly important.

Why Storage Is Becoming Central to the Conversation

While rooftop solar has become commonplace with more than 4.2 million Australian homes now generating their own electricity, battery uptake remains relatively low.

That’s beginning to change.

The federal Cheaper Home Batteries Program has significantly reduced upfront costs, and the average installed battery size has grown rapidly as households look to store enough energy to get through evenings and overnight periods.

At the same time, energy market signals are making one thing clear: cheap power is increasingly available during the day, expensive power is concentrated at night.

Households that can store daytime energy are better positioned to avoid peak pricing altogether.

Looking Ahead

Energy prices are no longer just about supply and demand, they’re about timing, flexibility, and preparation.

Short-term rebates may come and go, but the underlying shift in how electricity is generated and priced is permanent. The households best positioned over the next decade will be those that understand this shift early and adapt accordingly.

At SunEnergy, our role is to help South Australian households navigate these changes with clarity, not hype, and make informed decisions based on how they actually live and use power.

Keep reading

Battery

Guide for Sizing Solar Battery Systems

Solar Battery Size Requirements To determine the size of the solar battery needed for your system, you need to consider your power consumption patterns, when

Social Media Posts

Check out our latest social media posts