If your electricity bill feels too high, chances are a handful of appliances are responsible for most of the damage. In a typical Australian home, just five categories of appliances account for 70–80% of total electricity consumption. Knowing which appliances are the biggest energy hogs — and how to tame them — is the fastest path to a lower power bill.
The Top 5 Most Expensive Appliances to Run
| Rank | Appliance | Annual Cost | % of Avg Bill |
|---|---|---|---|
| 1 | Electric hot water system | $800–$1,500 | 25–35% |
| 2 | Heating & cooling (air conditioning) | $300–$800 | 15–25% |
| 3 | Pool pump | $400–$1,200 | 10–20% |
| 4 | Clothes dryer | $100–$250 | 5–8% |
| 5 | Old refrigerator (15+ years) | $200–$400 | 5–10% |
1. Electric Hot Water System — $800–$1,500/year
The single most expensive appliance in most Australian homes is the electric storage hot water system. Using a 3.6kW or 4.8kW heating element to heat 250–400 litres of water, these systems consume enormous amounts of electricity — even when running on off-peak tariffs.
How to reduce the cost
- Replace with a heat pump: This is the single biggest saving you can make. A heat pump uses just 25–30% of the electricity, reducing annual costs to $150–$350. After rebates, the upgrade costs $2,000–$3,500 and pays for itself in 3–5 years.
- If you can't replace yet: Take shorter showers, fix dripping hot taps, and insulate exposed hot water pipes. These small changes can save $100–$200 per year.
- Use solar boost: If you have solar panels, set your hot water to heat during the day using a timer switch ($50–$100 to install).
2. Heating and Cooling — $300–$800/year
Air conditioning is the second-largest energy consumer, with costs varying hugely depending on your climate, home insulation, and the efficiency of your system. Gas ducted heating can cost even more ($1,200–$2,000 per winter season) but shows up on your gas bill rather than electricity.
How to reduce the cost
- Set the thermostat wisely: Every degree cooler in winter or warmer in summer saves roughly 10% on heating/cooling costs. Aim for 18–20°C in winter and 24–25°C in summer.
- Clean your filters: Dirty filters force the system to work harder, increasing energy use by 15–25%. Clean them every 3 months during heavy-use seasons.
- Upgrade old systems: Modern inverter split systems are 30–50% more efficient than units made 10+ years ago. The improvement in efficiency alone can save $150–$300 per year.
- Insulate your home: Ceiling insulation is the single most cost-effective home improvement for reducing heating and cooling costs, typically saving 20–30% on climate control energy.
- Use zones and timers: Only heat or cool the rooms you're using. Close doors to unused rooms and use the timer function to avoid running the system when you're asleep or out.
3. Pool Pump — $400–$1,200/year
If you have a pool, your pump is likely one of the biggest energy consumers on your property. Standard single-speed pool pumps run at full power regardless of the task, consuming 1,500–2,500W for 6–10 hours per day.
How to reduce the cost
- Install a variable speed pump: These pumps adjust their speed to match the task — running slowly for filtration and ramping up only for cleaning. They use 60–80% less energy, saving $300–$800 per year. The upgrade costs $1,200–$2,000 and typically pays for itself in 2–3 years.
- Reduce run time: Many pool owners over-filter. Most residential pools need only 6–8 hours per day, not 10–12. Experiment with reducing run time and monitor water quality.
- Run during solar hours: If you have solar panels, time your pool pump to run during peak generation (10am–3pm) to use free solar electricity.
- Use a pool cover: Reduces evaporation, debris, and chemical use — all of which reduce the pump's workload.
4. Clothes Dryer — $100–$250/year
Clothes dryers are one of the most energy-intensive appliances on a per-use basis. A standard vented or condenser dryer uses 2,000–5,000W per cycle, and a typical load takes 1.5–2.5 hours to dry. For a side-by-side comparison of running costs, see our breakdown of heat pump dryer vs vented dryer vs the clothesline.
How to reduce the cost
- Use the clothesline: Australia has an abundance of sunshine — take advantage of it. Line drying is free and extends the life of your clothes.
- Upgrade to a heat pump dryer: Heat pump dryers use approximately 50% less energy than conventional dryers. They cost more upfront ($800–$1,500 vs $400–$800) but save $50–$100 per year in energy.
- Use high spin speed: A higher spin cycle on your washing machine removes more water, reducing drying time and energy use.
- Clean the lint filter every load: A clogged lint filter increases drying time and energy consumption significantly.
5. Old Refrigerator — $200–$400/year
A modern, efficient fridge costs $60–$150 per year to run. But if your fridge is over 15 years old, it could be costing you $200–$400 — two to three times as much. Old compressors, degraded door seals, and outdated insulation all contribute to higher energy consumption.
How to reduce the cost
- Replace an old fridge: A new 4-star fridge will cost $800–$1,500 but could save you $150–$250 per year in electricity. Payback: 4–7 years.
- Get rid of the "beer fridge": That old fridge in the garage running 24/7 for a few cold drinks could be costing you $200–$350 per year. Consider whether it's really worth it.
- Check door seals: Place a piece of paper in the door and close it. If the paper slides out easily, the seals need replacing ($50–$150).
- Set the right temperature: 3–4°C for the fridge, −18°C for the freezer. Use a thermometer to check — the dial markings are often inaccurate.
Smart Plugs and Energy Monitoring
If you're unsure which appliances are your biggest consumers, an energy monitor or smart plug can give you precise data:
- Smart plugs with energy monitoring (e.g., TP-Link Tapo, Kasa): $20–$40 each. Plug your appliance into it and monitor consumption via an app.
- Whole-home monitors (e.g., Powerpal, Efergy): $0–$150. Attach to your meter to track total household consumption in real time.
- Circuit-level monitors (e.g., Sense): $300–$500. Identify individual appliance consumption from your switchboard.
Even a week of monitoring can reveal surprising energy hogs and help you target your savings efforts where they'll have the most impact.
The Upgrade Path: Priority Order
If you want to reduce your electricity bill as quickly as possible, tackle the biggest consumers first:
- Priority 1: Replace electric hot water with a heat pump — saves $500–$800/year
- Priority 2: Upgrade pool pump to variable speed — saves $300–$800/year
- Priority 3: Replace old fridge and beer fridge — saves $150–$350/year
- Priority 4: Service or upgrade air conditioning — saves $100–$300/year
- Priority 5: Switch to line drying or heat pump dryer — saves $50–$150/year
Combined, these upgrades can reduce your electricity bill by $1,000–$2,000 per year. Start with the highest-impact items and work your way down as budget allows.