The average Australian household spends roughly $1,424 per year on electricity and $687 on gas. That puts the combined annual energy cost for most homes between $1,400 and $2,200, depending on your state, household size, and fuel mix. Those figures shift significantly from season to season. Winter heating and summer air conditioning create the two biggest spikes. If you are setting up at a new address, Connect Electricity Today and compare plans at the same time so you do not end up on an expensive default tariff.
What Does the Average Household Pay by State?
Where you live is the single biggest factor. Climate, network costs, and local pricing structures all play a role. Here is how average annual electricity bills look across the country:
State | Avg. annual electricity bill | Avg. quarterly gas bill |
|---|
South Australia | ~$1,580 | ~$285 |
Western Australia | ~$1,490 | ~$142 |
New South Wales | ~$1,450 | ~$238 |
Queensland | ~$1,420 | ~$220 |
Victoria | ~$1,380 | ~$214 |
ACT | ~$1,310 | varies |
Tasmania | ~$1,340 | limited gas network |
How Household Size Changes the Numbers
A single person living in an apartment will pay far less than a family of five in a freestanding house. According to a survey, the gap between a household with no children and one with two children is roughly $348 per year on electricity alone.
The biggest energy draws in a larger household are:
More people mean more showers and more hot water usage. This is often the single largest item on the bill.
Bigger homes have more space to heat in winter and cool in summer.
Larger households have the most to gain from switching to a competitive plan.
Energy Australia Plans and other major retailers offer time-of-use tariffs that let you shift heavy usage to cheaper off-peak windows. This makes a bigger difference the more electricity your household consumes.
Where Does the Money Actually Go?
Every electricity bill has two parts. The usage charge (c/kWh) covers the electricity you consume. The daily supply charge covers the cost of staying connected to the grid. Supply charges typically range from $0.90 to $1.30 per day, adding $328 to $475 per year before you use a single kilowatt-hour. For gas, the structure is the same. There is a usage charge per megajoule and a daily supply charge of 60 to 90 cents. If you use gas only for cooking, the supply charge alone costs you $219 to $328 annually. The seasonal swings are significant, too. Winter quarterly bills can be higher than in summer in southern states, driven almost entirely by heating.
Can Solar Reduce These Costs?
Yes, and substantially. A 6.6 kW solar system costs roughly $4,500 to $8,000 after the federal STC rebate. At current electricity prices, a household that self-consumes 15 kWh of solar per day avoids $1,600 to $1,900 in annual electricity costs. Feed-in tariffs for surplus solar exported to the grid sit at roughly 5 to 8 c/kWh in 2026. That is well below the retail rate, so the real value of solar is in using the power yourself during the day rather than exporting it. Most systems pay for themselves within 3 to 5 years. After that, the electricity they generate is effectively free.
The Simplest Way to Lower Your Annual Cost
Your energy plan is the fastest thing you can change. If you have not compared plans in the last 12 months, there is a good chance you are paying more than you need to.
Energy Australia plans include both flat rate and time-of-use options across most states. OVO Energy plans offer bill smoothing with direct debit and a 3% interest reward when your account is in credit, helping flatten seasonal spikes. You can compare plans through Connect With Us. A few other things that make a measurable difference:
- Run high-draw appliances during solar hours: If you have panels, dishwashers, washing machines, and pool pumps are easy to shift.
- Set your hot water thermostat to 60°C: Anything above that costs more for no practical benefit.
- Seal gaps around doors and windows: Keeping heated or cooled air inside means your system runs less.
In Summary
Australian households typically spend $1,400–$2,200 a year on energy, with costs varying by state, household size, and gas use. Bills rise in summer and winter due to heating and cooling, and larger homes cost more to run. Costs can be reduced by switching energy plans, improving efficiency, or installing solar.
Frequently Asked Questions
Q: Which state has the highest electricity bills?
South Australia, at around $1,580 per year on average. Network costs and higher usage rates are the main drivers.
Q: Is it worth switching energy plans?
Yes. The gap between the most expensive default offer and the cheapest market offer can be $400 or more annually. Compare Energy Australia plans, OVO Energy plans, and other retailers to see what is available for your postcode.
Q: Does solar actually lower your annual bill?
A well-sized 6.6 kW system can save you $1,600 to $1,900 per year on your electricity costs. Most systems pay for themselves within 3 to 5 years at current prices. Connect electricity today with a plan that includes a competitive solar feed-in tariff to maximise your return.
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