Another year, another power price rise. Are we surprised?
From July 1, 2025, households and small businesses in New South Wales, South Australia, and Queensland will face another bump in their electricity bills, with increases of up to 9.1%, according to the Australian Energy Regulator (AER). Victoria will also see a price rise under its own separate default offer.
So, what's driving these rising costs? And more importantly, how can everyday Australians protect themselves from the pressure of ongoing power price hikes?
Let's break it down.
What is the Default Market Offer (DMO), and Why Does it Matter?
The Default Market Offer (DMO) is essentially a government-regulated cap on what electricity retailers can charge customers who haven't shopped around for a better deal - known as a "standing offer" contract.The DMO serves as a reference price. This enables consumers to compare offers from different energy retailers. It applies to residential and small business customers in New South Wales (NSW), South Australia (SA), and southeast Queensland. While it's not always the most affordable plan available, it offers a level of consumer protection against excessive pricing.
Each year, the AER updates the DMO based on changes in the energy market. And this year's changes are being driven by some serious underlying issues.
Transmission upgrades and large-scale renewable rollout projects are expensive, and that expense is being reflected in your power bill.
Why are Electricity Prices Going up in 2025?
There are three main key factors behind the upcoming price rises:Higher Wholesale Electricity Prices
Wholesale energy prices have surged due to tight supply conditions and an increased reliance on backup generators during outages and peak demand periods. With increased demand on the grid, prices have risen - and that cost is now being passed on to consumers.Rising Network and Transmission Costs
There is a push to invest in building and upgrading infrastructure - especially for renewable energy sources. While that's a step in the right direction in the long term, it comes at a short-term cost. Transmission upgrades and large-scale renewable rollout projects are expensive, and that expense is being reflected in your power bill.Uncertainty in the Energy Transition
The push to reach 82% renewables by 2030 is ambitious, but rollout delays and budget blowouts are causing price instability. Developers are worried about returns, and the cost of developing renewables in Australia is now among the highest in the world. These growing pains in the green energy transition are another pressure point raising prices.In clear terms, the AER explains, “In 2025–26 network charges are mostly increasing, the main drivers being the revenue paths set in the applicable determination and inflation. Other factors include approved amounts for cost pass-through events and, for South Australia, increases in transmission costs.”
What's the Damage?
Here's what consumers can expect from July 1, 2025:NSW: Price increases between 6.1% and 9.1%
Queensland: Up to 4%
South Australia: Up to 3%
Victoria: Up to 1%
And while some people may brush off a few percentage points, the reality is that these increases are accumulating year after year with no end in sight.
So, What can you do About it?
This is where solar and battery storage come in.If you've been sitting on the fence about switching to solar or adding a battery, now's the time to take action. Here's why:
Lower Your Bills (For Good)
Rely less on the grid. Solar panels allow you to generate your own power during the day, reducing your daytime usage. Add a battery, and you can store that energy to use at night - when grid power is usually more expensive.Protect Yourself from Future Price Rises
Once your system is installed, you can generate free energy from the sun. It's a long-term investment that cushions you from unpredictable price changes.With solar and a battery, you become your own power source, and you decide when and how to use your electricity.
Take Back Control
Why be at the mercy of energy companies or unpredictable standing offers? With solar and a battery, you become your own power source, and you decide when and how to use your electricity.Blackout Protection + Energy Independence
Solar batteries don't just save money - they keep the lights on when the grid goes down. That's energy security you can rely on no matter what happens.What About Rebates?
Good news - many households are still eligible for rebates and state-based incentives that significantly reduce the cost of installing solar and battery systems. But, these programs often have limited funding, so it's best to act quickly before allocations run out.The Sooner you Switch, the More you Save.
The sad truth is that electricity prices aren't going down anytime soon. The AER has made it clear - wholesale and network costs are climbing, and so are your bills.But you can combat them by installing a solar battery system that gives you the power to push back - quite literally.
It could be about cutting your power bills. Perhaps it's about peace of mind during blackouts. Or maybe you're just tired of watching prices climb every year. Whatever your reason, getting solar and a battery in 2025 just makes sense.
Ready to Take Control?
At Solar Battery Group, we help Australian households reduce their energy bills with high-quality solar and battery systems tailored to their needs.Beat the July power price rise by requesting a callback to receive an obligation-free quote and start storing sunshine, creating a little breathing room for your family's finances.
