Step one: pay less for each kWh
Read the better offer message
Your bill must say whether your retailer has a cheaper plan for you. Ask to be moved to it.
Compare the market
Use Energy Made Easy or Victorian Energy Compare with your own usage. See our comparison guide.
Claim every concession
State concessions range from up to $285 a year in NSW to up to $1,200 in the NT. See concessions by state.
Check your discounts
A conditional discount you often miss may not be worth having. See pay-on-time discounts.
Step two: use less where it counts
| Change | Saving a year |
|---|---|
| Swap ten halogen downlights for LEDs, five hours a day | $278 |
| Three dryer loads a week in a heat pump dryer instead of a vented one | $98 |
| Electric hot water to a heat pump, 150 litres a day | $665 |
| Air conditioner thermostat one degree closer to outside, on a $907 a year unit | $45-$91 |
energy.gov.au says each degree of extra heating or cooling adds 5% to 10% to energy use, a heat pump hot water system uses about 30% of the energy of a conventional electric one, and LEDs use about 75% less than halogens. Those three facts explain most of the savings in a typical home.
- Heating and cooling: set 18°C to 21°C in winter and 24°C to 27°C in summer, close doors, and block the sun. See the cheapest way to heat a home.
- Hot water: shorter showers, cold washes and a controlled load tariff.
- Laundry: wash cold and use the line. See the cheapest way to dry clothes.
- Always-on loads: second fridges, towel rails and standby. See standby power.
Step three: use power when it is cheap
On a time-of-use plan, the same kWh can cost half as much outside the evening peak. On the Solar Sharer Offer or Victoria's Midday Power Saver, three hours in the middle of the day are free. Running the dishwasher, washing machine, pool pump and EV charger in those hours can take a real bite out of the bill. Our best time to run appliances guide shows how.
Know your numbers first
Before changing anything, work out what you use and when. Your smart meter data, a plug-in power meter and our appliance running cost calculator show where the money actually goes.
Questions about reducing your bill
Get a cheaper price. Check the better offer message on your bill, compare plans on Energy Made Easy or Victorian Energy Compare, and make sure any concession you are entitled to is applied.
Heating and cooling, at 20% to 50% of household energy depending on climate, then water heating at 15% to 30%, according to energy.gov.au. Pools and EVs are also large where present.
A little. energy.gov.au says standby can be up to 3% of household energy and cost up to $100 a year. It is worth doing for entertainment units and home offices, but heating, cooling and hot water matter more.
Only if you can use a fair share of your power outside the evening peak. Homes that are out all day and use most power after 4pm often pay more.
It depends on what you pay now. If your rates are above the regulated price for your network, the saving can be significant. Compare using your own usage rather than headline discounts.
Sources
Every rate on this page comes from the regulator or the regulated retailer. Last checked October 2026. Prices include GST unless we say otherwise.