Australia is using more renewable energy than ever. The shift is occurring as solar and wind power now supply a large part of the electricity that flows through our grid. However, despite this progress, many households have not seen a decrease in their power bills and prices remain high.
Starting July 1, 2025, electricity prices for residential customers on standing offer plans will increase. The increase will range from 0.5% to 3.7% in South East Queensland, 2.3% to 3.2% in South Australia, and 8.3% to 9.7% in New South Wales. For small business customers, price rises will range from 0.8% to 8.5%, depending on the area.
The Victorian Default Offer prices will apply from 1 July 2025 to 30 June 2026. Under these changes, average yearly electricity bills will increase by 1 per cent for residential customers and 3 per cent for small businesses.
This is not because renewable energy isn’t working. It’s because energy bills are shaped by more than just how electricity is generated. Costs rise from several places: global markets, geopolitics, infrastructure, and the way the energy system is managed. That complexity is part of the problem.
Renewable Energy Is Now the Lowest-Cost Option
Renewables are now the most affordable way to generate electricity in Australia. Wind and solar don’t rely on fuel in the traditional sense. Once they are in place, they produce power at a much lower cost than coal, gas or other fossil fuels.
This is supported by several reports from the energy sector. For the past seven years, renewable energy has had the lowest cost range of any new energy generation added to the grid. This applies not only in Australia but around the world. These sources are not just cleaner, they’re also cheaper.
Australia’s Energy Environment Is Changing
Clean energy is powering more of our homes and businesses every year. At present, roughly half of the electricity used each quarter comes from renewable sources. On some days, that figure rises above 75 per cent. A decade ago, these numbers would have seemed unlikely. This shift is significant. Just 20 years ago, less than 10 per cent of the grid was powered by renewables.
This increase is a result of steady investment in renewable energy systems. More solar panels are being installed. More wind farms are operating and energy storage is improving. The shift is visible in official market reports, showing that the renewable energy Australia is investing in is having an impact.
Why Are Energy Bills Still High?
Electricity prices have not decreased as many expected. There are several reasons for this.
More than 80 per cent of Australia’s gas supply is sold overseas. This links local prices to global markets, where costs can rise quickly. When those prices go up, so do domestic power bills. This was a major reason for the energy crisis price surge in 2022.
The grid still depends heavily on older coal-fired power stations. These facilities are aging and prone to breakdowns. When that happens, the energy supply drops and prices rise. These outages have become more common.
Coal power still supplies about 60 per cent of electricity through the grid. When these old plants fail, costs go up due to supply pressure.
Retail costs also reflect other pressures. These include retail margins, distribution fees, and costs tied to maintaining infrastructure. Even when wholesale electricity prices fall, these additional charges can keep the total power bill high.
The Value of Continuing the Energy Transition
It may be a question of whether this is the right time to continue investing in renewables. The answer is yes. The current situation highlights why the transition needs to continue and accelerate.
Greater use of renewable energy systems leads to more supply, more stability, and lower long-term costs. It also means less reliance on older infrastructure and global fuel markets. Over time, this can help reduce power bills for households.
Australia spent approximately $14.5 billion on fossil fuel subsidies in the 2023–24 financial year, around $563 per person.
Energy rebates offer some short-term help. However, they don’t address the primary reasons why energy prices remain high.
The Australian Government can play a role by redirecting subsidies from fossil fuels to clean energy solutions. The Government can support upgrades such as home insulation, efficient appliances, and solar systems. These steps offer practical help that can lower power bill costs for many homes.
Taking Control of Your Energy Plan
One immediate step for many households is to review their current energy plan. In a deregulated market, there are often better deals available, but many people don’t compare their options.
Move-In Connect makes this process easier. Whether you are moving homes or staying where you are, Move-in Connect helps you connect electricity and gas and find options that support renewable energy. Taking this step can help reduce your power bill without needing major changes at home.
Looking Ahead
The shift to renewable energy is important. It addresses rising emissions, improves energy stability, and can lead to more manageable costs over time. While current prices reflect the challenges of an outdated system, the long-term solution lies in building a more reliable and affordable energy future.
Move-In Connect is here to support that change by helping Australians connect electricity and gas. We make it easier to be part of a system that works better for everyone. Whether you need to connect electric or connect gas plans at your home, Move-in Connect has you covered.
