Cost of Electricity per kWh Australia: Understanding the Cost per kWh by State
With electricity bills rising and household budgets under pressure, many Australians want a clear answer to one key question: What’s the price of electricity per kilowatt? Whether you are comparing providers, planning solar, or trying to cut monthly expenses, understanding your electricity usage rate is essential.
This guide breaks down the cost of electricity per kWh across Australia, explains how bills are calculated, explores price-driving factors and solar feed-in tariffs, and shares practical ways to save your overall energy bills.
What Is Electricity Cost per kWh?
The cost of electricity per kilowatt hour refers to the usage charge applied for every unit of electricity you consume. One kilowatt-hour equals 1,000 watts used continuously for one hour; for example, running a 100W light bulb for 10 hours uses exactly 1 kWh.
In Australia, this electricity price per kilowatt hour appears on your bill as the “usage rate” or “energy charge,” measured in cents per kilowatt-hour (c/kWh). It does not include the daily supply charge, which covers the cost of maintaining the electricity network and grid access. Electricity rates vary depending on your state, local distribution network, and even the time of day you consume power.
Cost Kilowatt Hour Electricity by States in Australia
Electric cost kWh rates are largely set by distribution networks, with retailers adding small margins. Below are the latest average costs of electricity per kWh (incl. GST) as of February 2026, based on data from Canstar and other sources. So you can find the best electricity provider in your region.
State/Territory | Average Electricity Rate Per kWh (c/kWh) | Major Distributors & Rates (c/kWh) |
New South Wales (NSW) | 35.9-40.0 | Ausgrid: 35.9c/kWh (urban Sydney and surrounds); Endeavour Energy: 36.4c/kWh (western Sydney, Blue Mountains, Southern Highlands); Essential Energy: 40.0c/kWh (regional and rural NSW) |
Victoria (VIC) | 26.3-33.4 | CitiPower: 26.3c/kWh (inner Melbourne), Jemena: 28.6c/kWh (north-west Melbourne); Powercor: 29.0c/kWh (western Victoria); AusNet Services: 33.4c/kWh (eastern Victoria); United Energy: 27.9c/kWh (south-east Melbourne and Mornington Peninsula) |
Queensland (QLD) | 32.97-33.0 | Energex: 33.0c/kWh (South East Queensland including Brisbane); Ergon Energy: 32.97c/kWh (regional and rural Queensland) |
South Australia (SA) | 43.4 | SA Power Networks: 43.4c/kWh (statewide, covering Adelaide and most of SA) |
Australian Capital Territory (ACT) | 30.7 | EvoEnergy: 30.7c/kWh (Canberra and surrounding areas) |
Tasmania | 27.9 | TasNetworks: 27.9c/kWh (statewide, including Hobart and regional Tasmania) |
Western Australia (WA) | 32.37 | Synergy: 32.37c/kWh (South West Interconnected System, including Perth metro); Horizon Power: 32.37c/kWh (regional and remote WA towns) |
Northern Territory (NT) | 30.08 | Power & Water Corporation: 30.08c/kWh (regulated statewide, including Darwin and regional NT) |
Overall, the average cost of electricity per kWh is highest in South Australia, while Victoria and Tasmania consistently offer the lowest rates. However, electricity kWh rates alone don’t tell the full story. To get an accurate picture of what you will actually pay, you need to consider your household’s consumption patterns, any fixed daily supply charges, and potential discounts or time-of-use pricing.
How Do Utility Companies Calculate Your Electricity Bill?
Now that you understand the average cost of electricity in Australia per kWh, the next question is obvious: how much will you actually pay? In practice, your total electricity bill isn’t based on the electricity price per kWh alone. Instead, it’s calculated using a straightforward formula that combines fixed daily charges with your electricity consumption over the billing period:
Your bill = Daily supply charge × days + (Usage in kWh × rate per kWh) + other fees (e.g., metering, GST).
Here’s what each component means and key points to note:
Supply charge (fixed daily fee): $1.00-$1.50/day depending on state/network.
Usage charge: The power cost per kilowatt hour.
Time-of-use (TOU) tariffs: Peak rates can exceed 45-55c/kWh; off-peak as low as 20c/kWh.
Controlled load (e.g., hot water): Often used for hot water systems and charged at a lower, separate rate.
For example, a typical NSW household using 3,900 kWh annually on the Ausgrid network, with a $1.20 per day supply charge, can be calculated as ($1.20 × 365 = $438 in supply charges) + (3,900 kWh × 36c/100 = $1,404 in usage charges), resulting in a total electricity cost of approximately $1,842 per year.
What Factors Influence Electricity Prices?
Electricity prices in Australia are shaped by several interconnected factors. Below are the key elements that have the greatest impact.
Wholesale prices and generation mix: Electricity generated from coal, gas, and renewables affects wholesale costs, with gas-driven peak demand keeping prices volatile.
Network and distribution costs: Poles, wires, maintenance, and grid upgrades account for a large share of electricity bills.
Retailer margins and competition: Retail costs and profit margins vary, with stronger competition generally leading to a lower power price per kWh.
Government policies and rebates: Renewable targets, subsidies, emissions policies, and state rebates also influence energy prices kWh.
Peak demand and infrastructure upgrades: High demand periods, especially during heatwaves, require costly infrastructure investment and a higher cost of electricity per kWh.
Seasonal weather patterns: Extreme temperatures increase heating and cooling use, which might push demand and the power cost kWh higher.
Solar Feed-in Tariffs in Australia
If you install a solar system for your home, you can earn credits for excess electricity exported back to the grid through solar feed-in tariffs (FiT), which helps offset your power bill.
Based on 2026 data from Energy Matters, we outline typical feed-in tariff ranges by state.
NSW: Typical daytime FiTs range from 3-6c/kWh, with evening or time-varying rates reaching 10-20c/kWh, often linked to battery or VPP participation. There is no minimum FiT, as rates are retailer-set.
VIC: The minimum regulated FiT sits at 3-4c/kWh, while most retailers offer 3-6c/kWh. Time-varying options are limited. Modest export returns encourage self-consumption over exporting.
QLD: In South East Queensland, typical FiTs are 3-6c/kWh, while regional areas may see 5-10c/kWh. There is no minimum FiT, with rates set by retailers.
SA: Daytime feed-in electricity tariffs per kWh typically range from 2-5c/kWh, while battery or VPP exports can reach 15-25c/kWh under certain conditions. There is no minimum FiT, and export controls are widespread.
WA: Under the DEBS scheme, daytime exports earn around 2-3c/kWh, rising to roughly 10c/kWh during evening peaks. The export value is highly time-dependent, making careful system timing essential.
TAS: Typical FiTs range from 8-10c/kWh, with no minimum FiT and retailer-set rates. Export value is relatively strong for a small market, but fewer plans mean choosing the right retailer is critical.
ACT: FiTs generally sit between 6-10c/kWh, with no minimum and retailer-determined rates. High solar penetration is placing pressure on export values, which are gradually declining.
NT: Typical FiTs range from 7-10c/kWh, with no minimum FiT. However, system limits and storage capacity often matter more than tariffs, as strict export caps are common.
*Disclaimer: Before using this information, please note that solar feed-in tariffs (FiTs) can vary depending on your location, retailer, plan, and eligibility. EcoFlow makes no guarantees regarding the rates or benefits of FiTs mentioned here. This guidance is for educational purposes only and should not be considered legal or financial advice. Always consult official program guidelines or seek professional advice for accurate and personalised information.
Tips to Reduce Electricity Bills
With rising costs, proactive steps can cut your bill by 20-50% or more. Here's how to get started:
Switch to an Ideal electricity provider
Use platforms like Energy Made Easy or Finder to compare full offers, including discounts and FiTs. Switching providers could save hundreds per year, especially in competitive states such as NSW or Victoria.
Install a Solar System
A home solar setup with panels and an optional battery can reduce grid reliance and electricity costs, which can also serve as a home backup generator during outages. For many Australians, adding portable solar panels offers a flexible way to capture this free energy without the complexity of a fixed rooftop installation.
The EcoFlow 400W Portable Solar Panel fits seamlessly into this setup, featuring a high conversion rate that ensures you gather maximum power even during fluctuating weather conditions. Its foldable design allows you to adjust the angle throughout the day to follow the sun, directly charging your power station to run household appliances. By storing solar energy for use during peak tariff periods or grid failures, you can further decrease your reliance on mains power and keep your overall electricity costs manageable.
Use Off-Peak Hours
Run laundry, dishwashers, or EV charging during off-peak periods. You can also use smart timers, and apps make this easy.
Upgrade Appliances
Replace old fridges (500-800 kWh/year) with 5-star models to save up to 200 kWh annually. Smart thermostats can cut HVAC use by 10-15%.
Monitor usage
Track real-time consumption through smart meters and apps to identify waste, such as standby power. Set alerts for high usage to stay in control.
Save on Heating & Cooling
Simple insulation can cut heating and cooling costs by 5-10%. Ceiling fans consume 90% less energy than air conditioning, and each degree higher on your thermostat can reduce bills by 10%.
Adopt Portable Power & Backup
Invest in a reliable portable power station to capture excess solar energy or off-peak electricity. This allows you to power high-demand appliances during peak pricing periods or outages, cutting costs while ensuring reliable energy independence and blackout protection.
For a robust, high-capacity solution, consider the EcoFlow DELTA Pro 3 Portable Power Station. With expandable capacity, continuous output, and seamless solar integration, it delivers rapid charging and significant savings on peak usage or during grid failures.
For a more comprehensive approach, the EcoFlow DELTA Pro Ultra Whole-home Backup Battery offers a comprehensive residential energy solution. Unlike portable units, it integrates directly with your home’s electrical circuits via a transfer switch to provide an automated power transition. This setup manages high-demand loads across the entire household, allowing you to bypass peak grid prices and maintain seamless operation of all appliances during extended blackouts. It is the ideal choice for those seeking a permanent, high-capacity hub for total energy independence. The installation tutorial video walks you through the straightforward setup process.
Conclusion
The cost of electricity per kWh in Australia varies widely by state, but understanding your rates can help you make smarter choices. By comparing plans, embracing solar, and adding reliable backup like EcoFlow systems, households can significantly lower bills and gain energy independence. Ready to reduce your power costs? Explore the EcoFlow today for blackout protection and solar-ready savings now!
FAQs
Why is my cost per kWh different at night vs daytime?
Time-of-use (TOU) tariffs charge different rates depending on the time of day, with peak periods, usually 5-9 pm, being the most expensive.
Off-peak and shoulder periods offer lower rates, often around 20-25c/kWh on average, reflecting reduced demand on the electricity grid during those times.
What is the average electricity bill for a 3-person household in Australia?
A typical 3-person household consumes around 4,000-5,000 kWh of electricity per year.
In 2026, annual electricity bills are expected to range from approximately $1,400 to $2,200, depending on the state, with Victoria and Tasmania at the lower end and South Australia at the highest.
This includes supply charges, but households that adopt solar energy, batteries, or take advantage of market offers can reduce their total electricity costs by 20-40%, depending on consumption patterns and time-of-use strategies.
What uses the most electricity at home?
Heating and cooling, including air conditioning and electric heaters, account for 30-40% of household electricity consumption.
Other major contributors include water heating, appliances such as fridges and washing machines, lighting, and home entertainment devices. Standby power from electronics and charging electric vehicles can also significantly increase consumption.