In an acknowledgement of the significance of electricity costs for Australians, the 2024/ 25 Federal budget includes a $300 electricity credit for households. State governments have also bolstered household budgets with their own contributions. In WA, an additional $400 credit is being offered by the State Government to provide some relief to households and small businesses. The combined $700 credit ($725 for small business) will roll out across two instalments in July-August and December-January.
Let’s have a look at the 2024/ 25 budgets with energy in mind, and zoom in on what it means for Australian households.
Cost of living pressure
Since May 2022, cost of living has steadily increased, affecting Australians through everything from groceries, to fuel, rent and electricity. Reaching a high of 7.8% in December 2022, inflation is now 4.1% (as of December 2023), thanks to the RBA increasing the cash rate 13 times during that period.
But everyday Australians don’t need to know the numbers to feel the impact of rising prices.
As one of the biggest costs in the household budget, electricity prices have a noticeable effect. Unfortunately, there are more increases to come for many households.
If you're really looking to smooth out your power bills and take control of your consumption this winter, the best thing you can do is install a solar + battery solution. Winter is the best time to get solar for a few reasons. You’ll beat the summer rush and be sure to make the most of those longer sunny days when they roll around. If you already have solar, now is a great time to add a solar battery. Instead of exporting your excess solar back to the grid, store it in your battery to use during the evenings, cloudy days, and during blackouts and outages.
And you’ll be more resilient to rising electricity prices.
From 1 July 2024 in WA, Synergy has raised electricity prices by 2.5% (for the regulated residential tariff on the Synergy Home Plan A1) and some increases to Standard Fees and Charges. These price increases reflect the rising costs to generate and transport electricity and the ongoing costs to maintain the electricity grid.
In Victoria, where the state government sets the ‘default offer’ that applies to energy retailers, average annual residential electricity and gas bills are expected to decrease by 6% for 2024/25. Having said this, energy retailers are not obliged to offer the default rate, so it’s important for consumers to compare retailers to get the best price.
Adding to the complexity of energy pricing is the proposed ‘sun tax’ which is nearing the implementation phase in some states. This arrangement will introduce a two-way pricing system for solar generation, where solar customers are rewarded for exporting electricity to the grid during high demand periods, and penalised for exporting during periods of high supply (such as during ‘minimum demand’ events). The idea is to limit pressure on the electricity grid during periods of high supply (such as the middle of the day) by introducing a tax for solar exports during those times. It’s planned to be rolled out more formally in NSW and the ACT in July 2025, and distributors are still ironing out details.
In any case, the argument for installing a solar battery is getting even stronger. A solar battery enables you to store excess energy generated by your solar panels, to be used when the sun isn’t shining (such as evenings or on cloudy days) - or even when it is, to get the maximum benefit to your hip pocket.
Cost of living relief
The rising cost of living has been a topic of conversation and a challenge for Aussies for some months. As part of the federal budget, the Australian government is offering a $300 electricity credit for households ($325 for small business), available from July/ August 2024 power bills.
It’s a welcome supplement.
In WA, an additional $400 credit is being offered by the State Government to provide some relief to households and small businesses. The combined $700 credit ($725 for small business) will roll out across two instalments in July-August, and December-January.
In Victoria, the Solar Homes program offers rebates and loans for households making the switch to solar panels, solar batteries, and solar hot water systems. In addition, Victoria has an Energy Upgrades program to help more Victorians electrify their homes in order to reduce power bills and emissions. The Energy Compare website provides free, independent energy bill comparisons, empowering Victorians to make sure they’re getting the best available deal. Victorians can also access the Energy Assistance Program - free, one-on-one advice about energy usage for vulnerable Victorians.
Other ways to ease winter power bills
Other than accessing government programs and assistance, there are ways to ease your power bills as temperatures continue to drop.
With one of the biggest consumers of electricity being heating and cooling systems, there’s a lot to be said (and money to be saved) for insulating your home and being mindful of stopping draughts. Wear extra layers before you consider putting on the heater, use a hot water bottle to warm your bed, and be sure to close windows and blinds as the sun goes down.
You might also want to replace any light bulbs that blow and appliances that run their course with more energy-efficient options. You can also double check that you’re using the most energy efficient program on your washing machine and dishwasher, and be sure your fridge and/or freezer have plenty of airflow around them to avoid extra energy consumption. And you may not need that second fridge running until summer BBQ season is in full swing again.
In fact, we’ve got a few articles that get into even more detail if you’re looking for inspiration and tips about reducing your winter power bills!
Four ways to banish the energy bill blues this winter
Save on energy bills and stay warm this winter
Winter warming tips and tricks
Take your power into your own hands
If you're really looking to smooth out your power bills and take control of your consumption this winter, the best thing you can do is install a solar + battery solution.
In fact, winter is the best time to get solar for a few reasons. You’ll beat the summer rush, and be sure to make the most of those longer sunny days when they roll around.
If you already have solar, now is a great time to add a solar battery. Instead of exporting your excess solar back to the grid, store it in your battery to use during the evenings, cloudy days and during blackouts and outages.
When you join Plico, you’ll pay a simple weekly instalment for your solar + battery (or battery or solar only) and feel confident about what you’ll pay for your energy. Not only that, but you’ll have more visibility and control over your energy usage, with the Plico app.
If you want to pay less for power, talk to Plico today about how much you could save.
Don’t delay - book in your obligation-free call today. You can view our different solar + battery systems by clicking here or calculate your projected savings with our Solar Savings Calculator. You can also get in touch with one of our switched-on team members by calling 1300 175 426 to see how a solar + battery system can help you weather the cost of living storm.
Have a question about solar + battery?
