Retail electricity and gas prices have recently increased across Australia: electricity prices generally rose on 1 July but some gas tariffs won’t rise until 1 August.
We offer a free ready-reckoner tool on our website to help homeowners estimate the annual costs of gas and electricity for heating and cooling any dwelling – house, townhouse or apartment – in any of the eight Australian capital cities. The calculations have been updated with current electricity prices that took effect on 1 July 2025 specific to each location, and include the option of all-electric home conditioning. Additional energy costs for ducted systems are separately estimated on the basis of a single-storey house with ducts in its roof space.
Users can select a home size between 75 and 500 m² and compare the estimated energy costs of heating and cooling a home corresponding to a NatHERS Energy Efficiency Rating (EER) using appliances of varying energy ratings. The matrix covers the following five NCC Climate Zones (CZ), and users can apply results to other locations in the same CZ (for example, Canberra values for Armidale NSW and Ballarat VIC in CZ 7):
CZ 1 – Hot Humid Summer, Warm Winter (Darwin)
CZ 2 – Warm Humid Summer, Mild Winter (Brisbane)
CZ 5 – Warm Temperate (Adelaide, Perth, Sydney)
CZ 6 – Mild Temperate (Melbourne)
CZ 7 – Cool Temperate (Canberra, Hobart)
The increased electricity prices can be attributed, in large part, to the country’s energy transition away from fossil fuels like coal and gas towards renewable sources such as solar and wind. General inflation and higher interest costs are other factors known to impact the outcome for consumers.
While renewable energy is cheaper to produce over time, the upfront costs are substantial due to the complexity of developing and integrating these new technologies to the grid. These costs are being passed on to consumers through higher network and wholesale electricity charges. Renewables like solar and wind are intermittent by nature, requiring advanced grid management systems, backup generation, and large-scale battery storage to ensure reliable and consistent supply. Moreover, the closure of traditional baseload power stations has reduced the system’s stability, prompting the need for additional measures—such as synchronous condensers and grid-forming inverters—to maintain frequency control and voltage stability. Ultimately, while renewable energy is essential for long-term sustainability and emissions reduction, the transitional period brings significant financial pressures and these are reflected in the 2025 price increases.
