Electricity prices in Australia vary dramatically depending on where you live. A household in South Australia can pay 50% more per kilowatt-hour than an equivalent household in Queensland or Tasmania. Understanding these differences is essential for anyone comparing energy plans, considering a move, or evaluating the payback on solar and battery investments. Here's a comprehensive breakdown of electricity prices across every state and territory for 2026.
State-by-State Electricity Prices (2026)
| State/Territory | Avg Rate (c/kWh) | Daily Supply Charge | Avg Quarterly Bill | Feed-in Tariff (c/kWh) |
|---|---|---|---|---|
| Queensland | 25c | $1.00 | $380 | 5c |
| New South Wales | 32c | $1.10 | $450 | 7c |
| Victoria | 28c | $1.20 | $400 | 5c |
| South Australia | 38c | $1.15 | $520 | 6c |
| Western Australia | 30c | $1.05 | $420 | 3c |
| Tasmania | 27c | $0.95 | $380 | 9c |
| Northern Territory | 27c | $0.90 | $500 | 8c |
| ACT | 26c | $1.00 | $370 | 8c |
Why Are Prices So Different?
Several factors drive the price differences between states:
South Australia — Why So Expensive?
South Australia consistently has Australia's highest electricity prices. Several factors contribute:
- Early closure of coal plants: SA's last coal-fired power station (Northern) closed in 2016, earlier than any other state. While this accelerated the transition to renewables, it also created a period of tight supply and higher wholesale prices.
- Gas dependence: When the wind isn't blowing and solar isn't shining, SA relies heavily on gas-fired generation, which is expensive — especially as east coast gas prices have risen.
- Network costs: SA has relatively high network charges due to the long distances electricity must travel to reach remote communities.
- Small population: Infrastructure costs are spread across fewer customers compared to NSW or Victoria.
Queensland and Tasmania — Why Cheaper?
Queensland benefits from abundant coal-fired baseload generation (though this is gradually transitioning), relatively low network costs, and government-owned electricity infrastructure that allows the state to moderate price increases. The Queensland government has also provided direct electricity rebates to households.
Tasmania has access to cheap hydroelectric power through Hydro Tasmania, which provides reliable, low-cost renewable electricity. The state's small but consistent hydro resource keeps wholesale prices lower than in states dependent on gas or coal.
Northern Territory — Moderate Rate, High Bills
The NT has a moderate per-kWh rate but higher quarterly bills because of extreme cooling demand. Darwin's tropical climate means air conditioning runs for much of the year, pushing up total consumption significantly compared to southern states.
Historical Price Trends
Australian electricity prices have risen substantially over the past two decades. Here's how average residential rates have changed:
| Year | National Avg (c/kWh) | Key Driver |
|---|---|---|
| 2010 | 20c | Network gold-plating begins |
| 2015 | 28c | Carbon price impact, network costs peak |
| 2018 | 30c | Gas price crisis, coal closures |
| 2022 | 28c | Government price caps introduced |
| 2024 | 32c | Price cap expiry, wholesale increases |
| 2026 | 30c | Renewable capacity growth, stabilisation |
2027 Outlook
Looking ahead to 2027, several factors will influence prices:
- Renewable energy growth: Large-scale solar and wind farms continue to drive down wholesale electricity costs. As more capacity comes online, daytime wholesale prices are frequently negative — though this doesn't always translate to lower retail rates immediately.
- Coal plant retirements: The continued retirement of ageing coal plants (particularly in NSW and Victoria) could create temporary supply tightness and upward price pressure, especially during evening peaks.
- Transmission investment: Major transmission projects like Marinus Link (TAS–VIC), HumeLink (NSW), and VNI West (VIC–NSW) will add network costs in the short term but improve grid stability and access to cheaper renewable zones.
- Battery storage: Grid-scale batteries are increasingly filling the evening peak gap, reducing reliance on expensive gas peakers and moderating peak wholesale prices.
- Default market offer: The AER's Default Market Offer (and Victoria's VDO) continues to set a price cap on standing offers, providing a safety net for consumers who don't actively shop around.
What This Means for You
Regardless of which state you live in, the most effective way to reduce your electricity costs is a combination of using less energy, using it at the right times, and generating your own. Solar panels deliver the best returns in high-price states like SA and NSW, where the savings per kWh are greatest. But even in lower-price states like Queensland and Tasmania, a well-sized solar system typically pays for itself within 3–5 years.
Use our energy calculator tools to see exactly how your state's rates affect the payback on solar, batteries, heat pumps, and other upgrades — and compare plans to make sure you're on the best available rate.