2026 has been a turning point year for Australian energy bills — federal bill relief credits have ended, but regulated prices are falling in most states, and new rebate structures have replaced some of the old ones. Here’s what’s actually changed and what it means for your household.
Federal bill relief credits have ended
The Energy Bill Relief Fund, which delivered automatic quarterly credits to electricity accounts, concluded on 31 December 2025. From January 2026 onward, most households no longer receive automatic federal credits on their bills, and no replacement universal relief measure has been announced for the 2026–27 financial year. Some support continued into 2026 in narrower forms — eligible small businesses received rebates through to the end of 2025, and households in embedded networks (like apartment buildings and caravan parks) could apply for remaining 2025–26 payments through state service portals until 30 June 2026 — but broad-based automatic credits for typical households are over.
The practical effect: if your bill previously showed a credit reducing what you owed each quarter, that credit is now gone, and the full retail cost is what shows up on your statement.
Regulated prices are falling in most states from 1 July 2026
The other side of the story is more encouraging. The Australian Energy Regulator’s final Default Market Offer (DMO) determination for 2026–27 — which sets the price cap for households and small businesses on standing offer electricity plans in NSW, South East Queensland, and South Australia — brought price cuts to most of these regions from 1 July 2026:
- New South Wales: residential flat-rate prices fell 3.4% to 5.0%, depending on network area
- South East Queensland: residential flat-rate prices fell 7.2%, with time-of-use prices falling by up to 10.7%
- South Australia: the exception — residential flat-rate prices actually rose 1.4%, even though time-of-use and small business prices in the state fell
- Victoria: the Victorian Default Offer (VDO), Victoria’s separate benchmark, fell around 5% and took effect from 1 August 2026
Small businesses saw larger reductions across the board, with time-of-use prices falling by up to 20.9% in some regions.
It’s worth noting the DMO and VDO are safety-net benchmarks for customers on standing offers, not the price everyone pays — most households are already on market offers with a retailer, so these changes act mainly as a reference point for comparing deals, and to confirm whether you might be better off switching.
A new “Solar Sharer” free-power option
For the first time, the 2026–27 DMO includes a default Solar Sharer Offer, giving smart-meter households — including those without their own rooftop solar — a window of free or heavily discounted electricity in the middle of the day, when solar generation is highest. Retailers in the DMO regions are now required to offer this as an opt-in plan alongside their standard rates.
Battery rebates changed shape in May 2026
The Cheaper Home Batteries Program still provides an upfront discount — roughly 30% off eligible battery systems — through the Small-scale Renewable Energy Scheme, but the program’s structure changed on 1 May 2026, introducing size-based tapering of support rather than a flat discount regardless of battery size. If you’re considering a home battery, check the current tapered rates before assuming the original headline discount still applies at every system size.
What’s staying the same
Federal incentives for solar, batteries, and home electrification through schemes like the Small-scale Renewable Energy Scheme continue, though the Small-scale Technology Certificate (STC) solar rebate is on its own gradual wind-down, reducing by one-fifteenth each year until it disappears in 2031 — a long-planned taper, not a new 2026 change.
State and territory concessions remain — and matter more now
With universal federal relief gone, targeted state and territory concessions are now the main form of ongoing government support for energy costs. These are generally reserved for concession card holders (Pensioner Concession Card, Health Care Card, DVA Gold Card, and similar), and typically require the energy account to be in your name at your principal residence. Because these programs vary significantly by state, the most reliable way to check what you’re eligible for is through the federal energy.gov.au rebate portal, which lists active programs by state and card type, or directly with your state’s service agency.
What this means for your bill
| Change | Effect on your bill |
|---|---|
| Federal Energy Bill Relief Fund ended (31 Dec 2025) | No more automatic quarterly credits for most households |
| DMO cut in NSW, SEQ (1 July 2026) | Lower capped prices for standing-offer customers in these regions |
| DMO rose slightly in SA (1 July 2026) | Standing-offer residential customers in SA pay more, not less |
| VDO cut in Victoria (1 Aug 2026) | Lower capped prices for Victorian standing-offer customers |
| Solar Sharer Offer introduced | Optional free/cheap midday power window for smart-meter households |
| Battery rebate tapering (1 May 2026) | Discount now scales with battery size rather than a flat 30% |
| State/territory concessions | Still available, but only for eligible concession card holders |
FAQ
Will I automatically get the lower DMO price?
Only if you’re on a standing offer with your retailer. Most households are already on a market offer, so the DMO change mainly matters as a benchmark for comparing your current deal — it’s worth checking whether switching or renegotiating could save you more.
Why did South Australia’s prices go up when other states went down?
The AER’s determination reflects each region’s own cost stack — network costs, wholesale prices, and other factors specific to that state. South Australia’s residential flat-rate standing offer rose 1.4% even as its time-of-use and small business prices fell, driven by differences in its underlying cost structure compared with NSW and Queensland.
Is there still any bill relief if I’m not in a state concession category?
Broad-based, no-questions-asked bill relief has ended. Support now generally requires an eligible concession card or falling into a specific vulnerable-household category, so it’s worth checking the energy.gov.au rebate portal to see what your state currently offers.
Should I get a home battery now that the rebate has changed?
The discount is still meaningful — roughly 30% for many system sizes — but it now tapers based on battery size rather than applying flatly, so it’s worth getting a current quote that reflects the post–1 May 2026 structure rather than assuming an older headline figure still applies.
What is the Solar Sharer Offer and do I need solar panels to use it?
It’s a new opt-in plan offered by retailers in DMO regions that gives smart-meter households a period of free or discounted electricity in the middle of the day. You don’t need your own rooftop solar to use it — it’s designed to let more households benefit from the grid’s abundant midday solar generation.
The bottom line
The universal credit that used to soften every household’s bill is gone, but regulated benchmark prices are falling in most states from mid-2026, and new tools like the Solar Sharer Offer are opening up ways to cut costs without installing your own solar. The best move for most households now is checking whether you’re on a standing or market offer, comparing your current plan against the new DMO/VDO benchmarks, and confirming what state-level concessions you might still qualify for.