Power bills are a major pressure point for Australian households, especially as electricity, gas and water costs continue to rise. If your family budget is feeling squeezed, reviewing how you use energy at home can make a noticeable difference.
This guide shares practical ways to reduce your household electricity, gas and water costs. Many of these tips are easy to implement and, when combined, can help families save money without sacrificing comfort.
Looking for a broader approach?
Our guide on how to save money as a family in Australia covers groceries, transport, kids’ costs, travel and everyday household expenses.
Compare energy plans and talk to your provider
One of the quickest ways to save money on power bills is to make sure you’re on the best energy plan for your household.
Check the Energy Made Easy website
Energy Made Easy is a free Australian Government energy price comparison service for households and small businesses in New South Wales, Queensland, South Australia, Tasmania and the Australian Capital Territory. It allows you to compare electricity and gas plans from different retailers
Have a recent power bill handy and answer a few questions about your household and energy usage. You’ll receive a comparison of available plans and pricing so you can see whether switching could save you money.
Call your electricity or gas provider
Contact your current provider and ask what deals or discounts they can offer. Avoid staying on a default market offer if better plans are available. If you find a cheaper plan through Energy Made Easy, ask your provider to match it. If they can’t, check whether any exit fees apply before switching.
Reduce standby power and everyday electricity use
Small changes to daily habits can reduce unnecessary energy use.
- Switch appliances off at the wall when they’re not in use, especially overnight. Many appliances still draw power on standby.
- Put computers and laptops into sleep mode rather than leaving them on.
- Turn off lights when you leave a room and encourage kids to do the same.
- Charge phones and devices only when needed, rather than leaving them plugged in constantly.
Choose energy-efficient appliances and lighting
When replacing appliances, energy efficiency matters.
- Check the energy rating label before buying appliances such as fridges, washing machines, dishwashers and TVs.
- Choose LED light globes instead of halogen or older-style lighting. LEDs use significantly less energy and last longer.
- When upgrading appliances, opt for models designed to reduce energy consumption over time.
Save on heating and cooling costs
Heating and cooling can be some of the biggest contributors to power bills.
- In winter, wear extra layers at home to reduce reliance on heating.
- Only heat rooms you’re actively using and close doors to keep warmth in.
- If your kitchen and living area are adjoining, cooking meals can help warm the space.
- In summer, reduce air conditioner use where possible. Open windows for airflow or use fans, which consume far less electricity.
- Close blinds and curtains on hot days to keep heat out, and draw them in winter to retain warmth.
Improve insulation and keep draughts out
Keeping your home sealed helps maintain a stable indoor temperature.
- Use curtains to block cold draughts in winter and heat in summer.
- Seal gaps and cracks around doors, windows, floors and ceilings.
- Use draught stoppers or door snakes to prevent heat loss.
- If you own your home, consider installing roof or ceiling insulation to reduce heating and cooling costs year-round.
Cut kitchen energy use
The kitchen is a key area where energy savings can add up.
- Avoid using the oven for small meals. Appliances such as air fryers, microwaves, pressure cookers and toaster ovens use less energy.
- Keep lids on pots when cooking so food cooks faster.
- Thaw frozen food overnight rather than using a microwave thaw function.
- Set your fridge temperature between 3–5°C and your freezer between −15 to −18°C.
- Check fridge seals regularly to ensure cold air isn’t escaping.
- Cover food stored in the fridge to reduce moisture and compressor workload.
- Turn off second fridges or freezers when they’re not needed.
Reduce hot water and laundry costs
Hot water and laundry can significantly impact energy and water bills.
- Take shorter showers, ideally under five minutes.
- Set your hot water system temperature to around 50°C.
- Install water-saving showerheads to reduce water and heating costs.
- Use the half-flush option on toilets where available.
- Only run the washing machine on a full load or adjust the settings for smaller loads.
- Wash clothes in cold water whenever possible.
- Dry clothes outdoors or on indoor drying racks instead of using a dryer.
Check rebates and financial assistance
Some households may be eligible for help with energy costs.
NSW Family Energy Rebate (FER):
The $250 Family Energy Rebate helps eligible NSW families with dependent children cover the cost of their energy bills. Eligibility is generally linked to receiving Family Tax Benefit in the previous financial year.
There are also other rebates and grants available in other Australian states. Visit the Australian Government Energy website for more details.
Energy Accounts Payment Assistance (EAPA)
If you’re experiencing short-term financial hardship, you may be eligible for EAPA vouchers to help pay electricity or gas bills. These vouchers are sent electronically to your energy retailer.
Federal government solar and battery support
Some Australian households may be eligible for federal government incentives that help reduce the upfront cost of improving home energy efficiency. The Australian government offers the Cheaper Home Batteries Program to help more people install batteries. Upgrading to solar or battery storage can help reduce reliance on grid electricity over time, particularly for households able to use energy during daylight hours or store excess solar power for later use.