Home / Compare Energy / How to save electricity
Saving on electricity can be as simple as learning about energy consumption in the home, becoming aware of your usage habits and finding ways to reduce your energy usage.
Different retailers will have different energy plans and tariff rates, so it’s important to compare your options for one that suits your energy needs.
If you have a smart meter, you might have access to tariffs such as time of use and demand tariffs. In some cases, these tariffs can be beneficial to people who aren’t home or use minimal electricity during peak demand periods or can schedule high-energy appliances to be used throughout the day or late at night during off-peak hours, rather than during peak times.
If you use both electricity and gas, you may be able to save by comparing your gas and electricity plans separately, rather than opting for a combined energy plan. By comparing them individually, you’re able to search for the best deal for both electricity and gas, which can work out to be cheaper.
Most appliances or technologies we plug into wall sockets use power if the switch is turned on at the wall even while we’re not using them, sitting ready for action in ‘standby’ mode. Standby mode may be adding to your electricity costs, but it’s reasonably easy to avoid by switching things off at the wall rather than using the power toggle on the appliance itself.
Some common appliances that consume standby power include:
Older appliances are typically less energy-efficient than their modern counterparts. Replacing old household appliances that are frequently used (such as fridges, freezers and washing machines) with more energy-efficient appliances can significantly impact your home energy use. Some newer appliances that have high water use may have eco-functions that can help reduce your water usage.
When it comes to lighting, LED bulbs have a longer lifespan and are more energy-efficient than incandescent bulbs. However, modern appliances or technologies with large screens or powerful software, like TVs and modern gaming consoles, may use more energy than older models.
Appliances with higher energy star ratings are usually more energy-efficient and may save you money on your electricity bill. Learn more about how energy ratings affect your bill with our guide to technology energy consumption.
An affordable way to improve your heater or aircon’s efficiency is to install insulation if you don’t already have it. Insulation can regulate your home’s temperature by preventing the indoor and outdoor temperatures from flowing in or out of your home.
According to the Mackay Regional Council, the heat loss and gain in houses can be up to:
But with sufficient insulation, your home can keep its heat in winter and stay cool in summer.
Smaller homes are usually more energy-efficient because they have less surface area for heat to escape and enter (assuming that your home is fully sealed). Freestanding homes generally use more energy for heating and cooling than those with shared walls or roofs as well.
When trying to heat or cool down areas of your home, close off any unused rooms to use less electricity and improve your energy efficiency.
Solar power can reduce the amount of electricity you need from the grid, which in turn can lower your electricity bill. Using solar power requires a smart meter, meaning you’ll also be able to track your electricity usage.
Knowing what times your home uses the most electricity may help you control your usage and potentially save you money. For example, you could change your electricity habits, so your high-usage times are during the middle of the day when you’re using your solar power. With a solar battery to store power from your solar photovoltaic (PV) system, you can also use your stored electricity during the night, which may help you save on energy costs.
You can also compare retailers for a suitable solar feed-in tariff, so you can be paid for exporting your excess solar power to the grid.
While long, hot showers, clothes dryers and heat-drying your dishes are convenient, they can rack up your electricity bill. Consider your energy habits and how you may be using energy needlessly. Try some of these tips:
Certain appliances will eat up your electricity more than others, including air conditioners, heaters, fridges and ovens. Think about how you can apply the following energy-saving tips at home to increase efficiency and save on electricity bills.
Australia is known for its hot weather, so it makes sense we turn to air conditioners for relief. However, air conditioners are typically the most energy-intensive appliances and may cost from $9 a year for a small house with ducted evaporative cooling, up to $201 for a large house with ducted refrigerated air conditioning.2 The best way to save on air conditioning, in this case, is to keep it off when you can and cool your home in other ways like:
When choosing an air conditioner, you should choose the unit that best suits your household – not just the biggest and most powerful one. You should also regularly clean your filters to ensure its running at peak efficiency.
Electric heating elements are among the most electricity-hungry devices in the home. Heating an entire house may cost from $513 (for a small house with multi-split reverse-cycle air conditioning), up to $4,696 (for a large house with an electric in-slab) per year.3 In order to keep your heating costs low, try keeping warm in other ways or use your heating appliances responsibly:
If you heat your water with electricity (instead of gas), a household with two people may cost as low as $155 (with solar power) up to $670 a year (without solar), depending on which tariff you’re on and the type of water heating you use.4 These tips and tricks could help you reduce your energy bill even further:
Depending on the type of fridge, it may cost you between $59 and $201 in electricity a year.5 Old fridges are typically less efficient than more recent models; as such, upgrading will usually save money on electricity. However, it may take a while to see savings on this initial investment. Here are some further tips:
Due to its size, an oven can waste a huge amount of energy. However, there are ways to reduce that usage:
GST refers to the Goods and Services Tax. It is a 10% tax that applies to most goods and services that are sold or consumed domestically.6 GST does apply to your electricity plan and is included automatically in your bill. However, depending on your electricity provider, GST may not apply to certain charges or fees, such as:
As the Head of Energy at Compare the Market, Meredith O’Brien believes in educating Australian customers about the everchanging gas and electricity market so they can adjust their energy usage habits and get the most out of their energy plans.
Meredith has six years within the energy industry, following 15 years of experience in financial services and is currently studying a Master of Business Administration. Meredith is a dedicated customer advocate who is passionate about empowering Australians to find the right products to suit their needs by removing the confusion from comparing.
1 Mackay Regional Council. Insulate, shade and weatherproof your house. Accessed January 2025.
2 Sustainability Victoria. Compare cooling running costs. Updated January 2024. Accessed January 2025.
3 Sustainability Victoria. Calculate heating running costs. Updated January 2024. Accessed January 2025.
4 Sustainability Victoria. Compare water heating running costs. Updated September 2024. Accessed January 2025.
5 Sustainability Victoria. Reduce fridge and freezer costs at home. Updated January 2024. Accessed January 2025.
6 Australian Taxation Office – Australian Government. How GST works. Updated June 2023. Accessed January 2025.