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Is energy bill pressure swaying Australians toward solar?
About the study
In 2024-2025, electricity price safety nets – the Default Market Offer (DMO) and the Victorian Default Offer (VDO) - saw household electricity prices drop by 1-6 per cent in some regions and increase by 2-4 per cent in others. For small businesses, reductions were 1-9 per cent1. This followed significant price hikes the previous year, with household electricity jumping by 24.9 per cent in some regions and small businesses facing increases up to 28.9 per cent2, depending on their region and retail plan. In Victoria, the VDO rose by 25 per cent3.
Gas prices also significantly increased with the onset of the Russia-Ukraine war. The Australian Government introduced a temporary gas price cap in December 2022 to stabilise the market.
To support Australians through these price hikes and other cost-of-living pressures, the Australian Government funnelled another $3.5 billion into its 2024-25 Energy Bill Relief Fund – more than doubling the $1.5 billion allocated in 2023-24. The fund aims to ease the cost of living by providing households with $300 electricity bill rebates and small businesses with $325 rebates in quarterly instalments4.
Solar energy subsidies, rebates, discount schemes and loans are also available, at different levels, in each State, Territory and local government area, encouraging households and businesses to switch to renewable energy to reduce their energy bills5.
Against this background, Green.com.au commissioned a survey of 1000 Australians to gauge the impact of energy prices on household budgets and whether the financial pressure of energy bills would sway them to install solar power.
Respondents were asked to compare the size of their energy bills with other household expenses, how much their electricity bills had increased since last year, and whether they were expecting 'bill shock’ when they received their energy bill for the winter quarter. They were also asked if they would invest in solar panels and batteries if it meant annual energy savings of $2000.
What is the largest expense for households, after rent or mortgage?
Green.com.au asked respondents what their largest household expense was, aside from their rent or mortgage. They were presented with eleven common household expenses:
- Energy bill (gas & electricity)
- Home & contents insurance
- Car costs: insurance, rego, servicing & petrol
- Public transport costs
- Water
- Council rates
- Internet and streaming subscriptions
- Non-food groceries
- Food groceries
- Food groceries
- Pet expenses
The findings show that energy bills are overwhelmingly the largest household expense, after rent and mortgage repayments – with the cost hardly comparing with food or pet ownership expenses. More than a third (34%) of respondents indicated that their gas and electricity bills are higher than any other household expense. By comparison, 21 per cent of respondents named food as the top household expense, while a surprising 1 per cent named pet costs – which includes pet food, flea treatments and vet bills – as their biggest expense.
Car costs, including petrol, servicing, registration, and insurance, came in as the third-largest expense, with 13 per cent choosing this option, followed by council and water rates at 12 per cent, home and contents insurance at 10 per cent, and health insurance, medical expenses and medicines at 7 per cent. Non-food groceries such as toiletries, toilet paper, cleaning products – together with internet and streaming subscriptions - were considered the top expense by just 1 per cent of respondents.
Energy bill (gas & electricity)
Home & contents insurance
Car costs: insurance, rego, servicing & petrol
Public transport costs
Water
Council rates
Internet and streaming subscriptions
Non-food groceries
Food groceries
Health insurance, medical & medicines
Pet expenses
Results by State and Territory
Energy is the largest household expense across every State and Territory. Energy bills are hitting NSW and Victoria hardest, with 39 per cent and 38 per cent of respondents in these states (respectively) identifying this as their top expense. Thirty-two (32) per cent of South Australians also spent most of their budget on energy bills, followed by 30 per cent in the ACT, 26 per cent in Queensland and 23 per cent in Western Australia.
The impact of the cost of food on household budgets seems be similar across states and territories, with26 per cent in Queensland and ACT, 25 per cent in South Australia, 21 per cent in NSW, 20 per cent in Western Australia and 19 per cent in Victoria citing food-related groceries as their biggest expense.
Pet expenses rated low across all states and territories, with just 0-2 per cent of respondents across the country rating the cost of owning a pet as their largest expense. Non-food items, including internet and streaming subscriptions, rated as the top expense for just 1 per cent of respondents across NSW, Victoria and Queensland. For the ACT, it was the top expense for 4 per cent of respondents while in South Australia and Western Australia, the expense did not register at all.
NSW
VIC
QLD
SA
WA
ACT
Energy bill (gas & electricity)
Home & contents insurance
Car costs: insurance, rego, servicing & petrol
Public transport costs
Water
Council rates
Internet and streaming subscriptions
Non-food groceries
Food groceries
Health insurance, medical & medicines
Pet expenses
Results by home ownership status
Energy bills are the biggest expense for both renters and homeowners. Renters are the hardest hit, with 42 per cent spending most of their budget on energy bills. The result supports proposed Victorian Government reforms to improve energy efficiency standards on rental properties. By comparison, 31 per cent of respondents who own the home they live in say energy is their biggest expense.
Food bills are also hitting renters harder, with 26 per cent saying this was their biggest household expense, compared with 20 per cent of homeowners. Other top expenses were car costs, at 14 per cent for renters and 12 per cent for homeowners. Council and water rates were also a top expense for 15 per cent of homeowners, followed by health insurance, medical and medicine expenses at 9 per cent. Two per cent of renters say pets were their biggest expense while internet and streaming subscriptions, came in as the top expense for 1 per cent of renters and homeowners.
Energy bill (gas & electricity)
Home & contents insurance
Car costs: insurance, rego, servicing & petrol
Public transport costs
Water
Council rates
Internet and streaming subscriptions
Non-food groceries
Food groceries
Health insurance, medical & medicines
Pet expenses
Results by age group
Energy bills are overwhelmingly the biggest household expense across every age group, with the exception of over-65s, where food is the top expense.
Forty per cent of respondents aged 35-44 say gas and electricity cost the most. Younger people aged 18-34 are also feeling the pressure from energy bills with 37 per cent citing them as their biggest expense, followed by 45-to-54-year-olds (36%) and 55-to-64-year-olds (34%).
Among over-65s respondents, only 21 per cent put energy bills at the top of their list, while a quarter (25%) say food is the larger cost, followed by car expenses, at 14 per cent.
Health-related expenses are also highest in the older groups - at 12 per cent for respondents aged 55-64 and 11 per cent for those aged 65+. By comparison, just 3 per cent of under-35s cited health expenses as the top cost, followed by 7 per cent of 35-to-44-year-olds and 6 per cent of 45-to-54-year-olds.
Energy bill (gas & electricity)
Home & contents insurance
Car costs: insurance, rego, servicing & petrol
Public transport costs
Water
Council rates
Internet and streaming subscriptions
Non-food groceries
Food groceries
Health insurance, medical & medicines
Pet expenses
How much more are Australians paying per month than last year?
Respondents were asked how much more they paid per month in their last electricity bill than the same time last year. They were given six price brackets to choose from, ranging from 'the same’, up to ‘more than $2000’.
One quarter (24%) are paying more than $300 per month than last year. Specifically, 12 per cent are paying $301-500 extra, 7 per cent are paying $501-$1000 more, 5 per cent are paying $1001-$2000 more, and 2% paying as much as $2000 or more. One quarter (23%) are paying the same as they were last year.
The cost of energy can vary greatly between households depending on the size of the household, energy retailer plans available in the region and the energy regulator for each state and territory. Some states saw electricity prices jump by 25 per cent in 2023-2024 while others, such as Western Australia, experienced a minimal increase of 2.5 per cent6. Solar installations, which are steadily increasing across Australia7, the capacity of the system installed, and the local climate also impact energy bills.
More than $2000
$1001-2000 more
$501-1000 more
$301-500 more
$100-300 more
Up to $100 more
The same
Results by State and Territory
Households across the states and territories paid an average of $100 to $300 more on their energy bills per month with a small percentage in every region paying as much as $2000 or more.
A quarter (25%) of NSW respondents experienced a $100-$300 increase, followed by 21 per cent in Victoria, 20 per cent in Western Australia and Queensland, 19 per cent in South Australia and 18 per cent in the ACT. Four per cent of ACT respondents pay $2000 or more than last year, followed by 3 per cent in Queensland, South Australia and Western Australia, 2 per cent in NSW and 1 per cent in Victoria.
Another 16 per cent of NSW respondents are paying $301-500 extra per month compared to 12 per cent in Victoria, 10 per cent in Western Australia, 9 per cent in the ACT, 8 per cent in Queensland, 6 per cent in Western Australia and 4 per cent in South Australia.
In the ACT, a surprising 48 per cent of respondents say they are paying no more than they did at the same time last year. By comparison, just 15 per cent of South Australians and 17 per cent of NSW respondents have not noticed an increase on their monthly energy bills.
NSW
VIC
QLD
SA
WA
ACT
More than $2000
$1001-2000 more
$501-1000 more
$301-500 more
$100-300 more
Up to $100 more
The same
Results by home ownership status
Homeowners and renters are paying an average of $100-300 extra per month on energy bills. Twenty-one (21) per cent of homeowners and 24 per cent of renters experienced this increase, while another 12 per cent of homeowners and 10 per cent of renters paid an extra $301-500 per month.
Nine (9) per cent of renters saw their energy bill jump by $501-1000 per month compared with 5 per cent of homeowners who saw the same. Six (6) per cent of renters and 4 per cent of homeowners experienced a $1001-2000 hike and an equal 2 per cent cited an increase of $2000 or more.
Almost a fifth of homeowners (24%) and 21 per cent of renters did not experience any increase compared to the same time last year.
More than $2000
$1001-2000 more
$501-1000 more
$301-500 more
$100-300 more
Up to $100 more
The same
Results by age group
A higher proportion of younger respondents experienced an increase of $100-300, while older respondents saw a minimal rise, or nothing at all.
More than a quarter (28%) of respondents aged 35-44 saw their energy bills go up by $100-300 per month on last year. Respondents aged 45-54 followed at 26 per cent, and 18-34-year-olds at 21 percent.
For 44 per cent of over-65s and 34 per cent of those aged 55-64, energy bills rose by less than $100. A third (33%) of over-65s and a quarter (25%) of those aged 55-64 were paying the same as they were last year.
A smaller proportion of respondents across all age groups were hit with an extra $1001-2000 per month. Those most likely to experience this increase were under 35, with 12 per cent citing a $1001-2000 jump and 11 per cent paying an extra $501-1000.
More than $2000
$1001-2000 more
$501-1000 more
$301-500 more
$100-300 more
Up to $100 more
The same
Who expects energy bill shock at the end of winter?
Following the winter billing quarter, households are either anticipating post-winter electricity bills or have already received one. Green.com.au asked respondents if they were expecting to get energy bill shock when their winter bill arrived with the option to answer yes, no, or yes, I already have.
Almost half (49%) of respondents say they expect post-winter energy bill shock, and an additional 17 per cent say they have already experienced post-winter energy bill shock. The significant energy price hikes of 2023-2024, which saw electricity prices increase by up to 25 per cent in some states, decreased only slightly this year. The final price of winter energy bills depends on several factors, including how much time householders spend at home.
A third (33%) of survey respondents are confident that they will not be shocked by their winter energy bill this year – a finding that suggests that they are monitoring their energy usage and retail plan closely.
Yes
Yes, I already have
No
Results by State and Territory
Energy bill shock is overwhelmingly expected in most states and territories, except for Western Australia.
In the ACT, 52 per cent of respondents say they are bracing for their end-of-winter energy bill, while 13 per cent have already received a bill that shocked them. An equal number of NSW respondents (52%) also expect energy bill shock, with 18 per cent saying they have already experienced it.
In Victoria and South Australia, 51 and 52 per cent, respectively, expect energy bill shock. One fifth (22%) in Victoria and 15 per cent in South Australia have already experienced it. Queensland followed at 44 per cent, plus 15 per cent who have already had an energy bill shock.
In Western Australia 38 per cent of respondents are bracing for post-winter energy bills and 15 per cent have already received it. More WA respondents - almost half (47%) - say they do not expect a shock from their winter bills, a finding that reflects relatively minimal energy price rises in this state. In 2023, WA electricity prices rose 2.5 per cent, an increase well below the national inflation rate8.
NSW
VIC
QLD
SA
WA
ACT
Yes
Yes, already have
No
By home ownership status
Renters and homeowners alike are expecting energy bill shock following the winter quarter, with many having already received a higher bill than expected.
More than half of renters (53%) are expecting to be shocked by their post-winter energy bill and 14 percent say they have already received it. This compares with 33 per cent of renters who are not expecting any surprises.
Among homeowners, 46 per cent are preparing for post-winter energy bill shock while 19 per cent have already received it. More than a third (35%) say they are not expecting a surprise.
Yes
Yes, already have
No
Results by age group
More than half of younger respondents are feeling nervous about their upcoming winter energy bill while fewer retirement-aged respondents are feeling the tension.
Respondents under 35-44 are hardest hit by energy bill nerves, with 54 per cent expecting post-winter energy bill shock. Forty-six (46) per cent of 18-34-year-olds and 20 per cent of 35-44-year-olds say they have already received a bill that was higher than expected.
Older respondents aged 55-64 followed, with 51 per cent expecting a shock, while 12 per cent have already experienced it. Among respondents aged 45-54, 48 per cent expect energy bill shock and 19 per cent say they have already been hit with it. For over-65s, 39 per cent are bracing for post-winter energy bills and 16 per cent have already experienced a shock.
Yes
Yes, I already have
No
Who is willing to spend $8000-10,000 on a solar energy system to save $2000 a year on energy bills?
Respondents were asked if rising energy costs would motivate them to install solar power. Given the incentive of a $2000 annual saving on household energy bills, they were asked if they would invest in solar panels and batteries at an average cost of $8000-10,000 with Government rebates.
An overwhelming 68 per cent of respondents say they would invest in household solar panels and batteries to save a couple of thousand dollars on their energy bills.
A typical home rooftop solar system includes around 19, 350-watt solar panels, with the capacity to generate 6.65kW of power. An inverter is an essential component that converts the energy generated from the panels into consumable electricity. Batteries are optional and used to store excess power for use at night, on cloudy days and during power grid outages.
Prices start around $4000 for a smaller solar installation up to $10,000 for a larger system, plus the cost of a battery if needed. The required size depends on a household’s energy needs. Rebates and incentives for solar panels and batteries vary between states and territories.
Yes
No
Results by State and Territory
The majority of respondents in all states and territories support investment in home solar panels and batteries to cut back their energy bills.
In South Australia and the ACT, 76 per cent and 74 per cent of respondents, respectively, backed installing solar and batteries. Queensland followed, at 70 per cent, NSW and Western Australia with an equal 67 per cent, then Victoria, at 66 per cent.
The rate of solar installations and support typically fluctuates across states and territories depending on Government policy decisions, available rebates and incentives in the regions, and the effectiveness of solar panels in states with cooler climates.
NSW
VIC
QLD
SA
WA
ACT
Yes
No
Results by home ownership status
Homeowners and renters both overwhelmingly support solar installations for energy bill savings. Sixty-nine (69) per cent of homeowners and 65 per cent of renters deemed the investment worthwhile.
The support among renters reflects calls for investment property owners to improve the energy efficiency of rental properties. The Victorian Government is developing minimum standards that will require rental properties to have sufficient ceiling insulation, draught sealing and energy-rated heating systems. The standards aim to improve tenant comfort and help reduce their energy bills.
Yes
No
Results by age group
Younger people were distinctly more supportive of home solar installations for energy bill savings with 76 per cent of under-3 5s, 74 per cent of those aged 35-44 and 70 per cent of those aged 45-54 saying they would outlay up to $10,000 to save $2000 annually.
The move received less support among older generations, with 56 per cent of over-65s backing it, followed by 60 per cent of 55-64-year-olds.
Yes
No
- Final decision on electricity prices to protect consumers | Australian Energy Regulator (AER)
- AER releases final determination for 2023–24 Default Market Offer | Australian Energy Regulator (AER)
- RPT - Victorian Energy Market Report - June 2023_5.pdf (esc.vic.gov.au)
- Energy Bill Relief Fund 2024-25 | energy.gov.au
- Government rebates and loans for solar | energy.gov.au
- Electricity price changes in Western Australia from 1 July (www.wa.gov.au)
- australian-energy-council-solar-report-q1-2023.pdf (energycouncil.com.au)
- Electricity price changes in Western Australia from 1 July (www.wa.gov.au)
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