Let’s be honest — electricity prices in Australia have been going through the roof. If you’re like most Australians, you’ve probably looked at your power bill and thought, “There has to be a better way.” Well, there is.
After doing a heap of research and testing different approaches, I’ve put together this guide on how to actually save money on your electricity bill. No gimmicks, no nonsense — just practical tips that work.
Understand Your Bill First
Before you can start saving, you need to understand what you’re actually paying for. Australian electricity bills typically include:
- Usage charges: The actual power you consume (kWh)
- Supply charges: The daily cost of having your property connected
- Green charges: Optional renewable energy contributions
- Various fees and taxes
The biggest chunk of your bill? That’s usually the usage charges. That’s where you can make the biggest impact.
Quick Wins: Low-Effort Changes
1. Switch Off at the Wall
I’m amazed at how many people leave appliances on standby. That TV, microwave, and game console? They’re quietly draining power even when “off.”
Get into the habit of switching off at the wall, or invest in a power board with an on/off switch. You could save up to 10% on your bill doing this alone.
2. Change Your Lightbulbs
If you haven’t already switched to LED bulbs, do it now. They use about 75% less energy than traditional incandescent bulbs and last way longer.
One LED bulb can save you around $200 over its lifetime. Not bad for a $5 purchase.
3. Wash Clothes in Cold Water
Heating water is one of the most energy-intensive things in your home. Switching to cold washes can cut your water heating costs significantly.
Most modern detergents work just as well in cold water. Your clothes will actually last longer too, since hot water can cause colours to fade.
Medium Effort Changes
4. Optimise Your Thermostat
Heating and cooling can account for up to 40% of your electricity bill. Every degree you lower your heater in winter adds about 10% to your heating efficiency.
Aim for 18-20°C in winter and 25-27°C in summer. Use rugs and blankets to stay warm instead of cranking up the heat.
5. Use Your Stove Smartly
Cooking with lids on pots reduces heat loss and cooks food faster. Use the right size pot for your burner — don’t use a massive pot on a tiny burner.
Microwaves are actually more energy-efficient for reheating food than conventional ovens. Keep that in mind for your leftovers.
6. Time Your Usage
If you’re on a time-of-use tariff, running high-energy appliances during off-peak hours can save you serious money. Peak times are usually weekday afternoons and evenings.
Run your dishwasher, washing machine, and dryer outside peak hours when possible.
Bigger Investments, Bigger Savings
7. Install Solar Panels
This is the big one. Solar panels can dramatically reduce your electricity bills, and with government rebates in most states, the payback period is better than ever.
In Australia, a typical 6.6kW solar system can save you between $1,500 and $2,000 per year on your electricity bills. That’s a solid return on investment.
Most systems pay for themselves within 4-6 years and then give you free power for the remaining 15-20 years of their lifespan.
8. Upgrade to a Heat Pump Hot Water System
Traditional electric hot water systems are energy hogs. Heat pump systems use roughly one-third of the energy, making them much cheaper to run.
They work like reverse air conditioners, extracting heat from the air to heat your water. Even in cooler climates, they perform well.
9. Get a Smart Energy Monitor
These devices show you exactly how much power you’re using in real-time. There’s something powerful about watching the dollars add up — it motivates you to change your behaviour.
You can pick up basic models for around $50-100, and the savings from changed habits can be significant.
Don’t Forget the Basics
- Compare providers: Aussie energy providers change their rates constantly. Use comparison sites to make sure you’re not on a terrible deal.
- Ask for discounts: Sometimes just calling and asking nicely can get you a better rate. Loyalty doesn’t always pay in this industry.
- Check for rebates: There are various government rebates available depending on your state and circumstances. The Concession Finder on the Services Australia website can help.
- Insulate: Proper insulation keeps your home comfortable year-round and reduces heating and cooling costs.
The Bottom Line
Saving money on electricity isn’t about suffering in the dark or freezing in winter. It’s about being smart with how you use energy and making a few strategic changes.
Start with the quick wins — switching things off at the wall, LED bulbs, washing in cold water. Those add up fast. Then move on to the bigger changes if your budget allows.
And always remember: the cheapest watt is the one you never use.