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Electricity price hike reignites call for renewable energy support in Australia’s eastern states

25 Mar, 2025
Electricity price hike sparks call for renewable energy support in Australia's eastern states



Electricity prices in Australia’s eastern states are set to rise by up to 9 per cent from July 2025, according to the Australian Energy Regulator (AER).

The increase, driven by higher wholesale and network costs, has reignited calls for stronger government support to expand access to renewable energy and alleviate cost-of-living pressures for households.

Solar Citizens CEO Heidi Lee Douglas highlighted the role of ageing coal-fired power plants and reliance on expensive gas in driving up energy costs.

She emphasised the need for affordable renewable energy solutions, such as rooftop solar and home batteries, which have already helped millions of Australians save around $1,000 annually on electricity bills.

However, 60 per cent of Australians remain unable to access these benefits due to barriers like living in rentals or high-rise apartments.

Douglas called on federal and state governments to implement a national target of one million home batteries and introduce a Federal Battery Rebate scheme.

“We need more Australians to take back control of their energy through solar and batteries at home,” she said.

She also criticised the lack of strong commitments from major political parties ahead of the federal election.

The Default Market Offer (DMO), which acts as a price cap for electricity in New South Wales, South East Queensland, and South Australia, will see increases ranging from 2.5 per cent to 8.9 per cent for residential customers.

The AER attributes these hikes to rising wholesale market prices due to coal generator outages, low solar and wind output, and inflation-driven network costs.

Small businesses are also expected to face price increases between 4.2 per cent and 8.2 per cent.

Douglas also warned against nuclear energy proposals, arguing that they would double energy bills for solar households and undermine Australia’s renewable energy achievements.

She cited international examples where nuclear power has displaced renewables, urging policymakers to prioritise investments in renewable energy storage instead.

With energy companies reporting record profits amidst rising costs, Solar Citizens is urging governments to help households transition to renewable energy by subsidising solar batteries and addressing systemic barriers.

As cost-of-living pressures mount, the organisation stresses that scaling up renewable energy is the most effective way to stabilise electricity prices and ensure a sustainable energy future.

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