What’s coming next for energy prices in Australia?

If you’ve been watching your electricity bills rise and wondering when it’s going to stop - you’re not alone. The big question on everyone’s mind is:

   "Will energy prices in Australia go down any time soon?"

The short answer? There’s some hope on the horizon, but it’s complicated. Let’s break down what’s expected over the next few years - and what it means for your power bills.

First, the bad news: Prices are still bumpy for now

In 2025, many households will continue to feel the pinch. Here's why:

  • Default market offers (DMOs) and standing offers have already increased in some states this year.
  • Wholesale electricity prices have remained volatile, driven by fuel costs, weather events, and aging infrastructure.
  • Costs for maintaining and upgrading the grid are still high - and those are passed on to consumers.

So, in the short term, you might not see major relief - especially if you haven’t switched to a more competitive energy plan.

The good news: The long-term outlook is more positive

Despite the current pain, energy experts are cautiously optimistic about the long-term. Here's why:

More renewable energy is coming online

  • Australia is investing heavily in large-scale wind, solar, and hydro projects - and rooftop solar continues to grow across homes and businesses.
  • More renewable energy = lower generation costs (once it's built) = potential for cheaper electricity.

By 2030, it’s expected that over 80% of Australia’s energy mix will come from renewable sources. That’s a big deal.

Big batteries and energy storage are expanding

The main problem with renewables is that they’re variable - the sun isn’t always shining, and the wind doesn’t always blow.

That’s where batteries come in.

  • Grid-scale batteries are being rolled out across the country to store surplus energy and release it during peak times.
  • This should help reduce price spikes and increase reliability.

The more stable the energy supply, the less pricing volatility - and that’s good news for your bills.

The grid is getting a major upgrade

The electricity network (poles, wires, substations) is being modernised to better handle:

  • High volumes of renewable energy
  • Two-way flows (e.g., from your rooftop solar)
  • Smart technology and real-time pricing

This investment is expensive now, but it’s expected to create a more efficient and lower-cost grid in the future.

It’s kind of like fixing a leaky roof - painful in the short term, but worth it later.

Wholesale prices are starting to stabilise

While wholesale prices have been extremely volatile over the past couple of years, recent trends show signs of stabilising - especially as more renewables reduce the need for expensive gas.

If this continues, retailers will have more room to offer competitive deals to customers.

What this means for you

In plain English:

  • 2025 - 2026: Prices may remain high or fluctuate. Watch your bill closely and shop around for better deals.
  • 2027 - 2030: As new projects are completed, prices are expected to ease - but how much depends on government policy, investment, and grid reliability.

So, will my power bill go down?

It's possible - but only if you’re proactive.

  • Compare energy plans regularly
  • Switch if your rate has increased
  • Be smart with usage and efficiency
  • Take advantage of solar if you can
  • Stay informed on policy and rebates

Don’t wait for lower prices - find a better plan now

Even if electricity prices aren’t falling yet, you don’t have to pay more than you should.

Call Compare Energy on 1300 790 106

  • Check if you’re on the best available plan
  • See if you can switch and save
  • Get expert help - for free