Winter in Australia often brings a sharp increase in energy consumption, translating to higher bills. For renters, the challenge is compounded by limitations on major property upgrades. However, significant savings are achievable through smart habits and cost-effective solutions. By focusing on draught-proofing, efficient heating, and leveraging available concessions, Australian renters can realistically reduce their winter 2026 energy expenditure by hundreds of dollars.
Understanding Your Energy Bill in 2026
Before diving into savings, it’s crucial to understand what you’re paying. The Default Market Offer (DMO) in NSW, SA, and SE QLD, and the Victorian Default Offer (VDO), act as a price safety net and a benchmark for market offers. While the DMO for 2025-26 saw price increases in some states, the final DMO 8 for 2026-27 (released May 2026) indicates price reductions for residential customers in NSW (2.7% to 8.2% depending on network), QLD (7.2%), and Victoria (an average 5% reduction). South Australia’s residential flat rates are projected to rise by 1.4%, though time-of-use tariffs may see reductions.
However, these are default prices. The Australian Energy Regulator (AER) noted in May 2025 that 90% to 95% of competitive market offers were below the current DMO price, with the lowest offers 18% to 27% cheaper. This highlights the importance of regularly comparing plans. The average annual electricity bill in Australia ranges from approximately $1,700 to $2,300 in 2026, or $470 to $585 per quarter. A significant portion of this is the daily supply charge, averaging 105c/day nationally. Gas prices on the east coast saw a five-year low in June 2026, reaching AU$9.08 per gigajoule (GJ), a 26.5% decline from 2025. Despite this, average quarterly gas bills still sit around $230 to $240, with NSW seeing up to $300.
“Approximately 15–20% of Australian households remain on standing offers, overpaying by an average of $380/year compared to the best available market offer in their state.”
Action: Use government comparison websites like Energy Made Easy (for NSW, QLD, SA, TAS, ACT) or Victorian Energy Compare (for VIC) to find a better deal. See our guide: Choosing Your Australian Energy Provider in 2026: A Definitive Guide
Low-Cost Draught Proofing: Seal the Leaks, Keep the Heat
Draughts are a major culprit for heat loss, making your heating work harder. Addressing them is one of the most cost-effective ways for renters to save.
- Door Snakes/Draught Stoppers: These simple fabric tubes block gaps under doors. Products like the Sperling 90cm Black Elegant Draught Stopper or Astin Sinclair 90cm Jumbo Draught Stopper are readily available at Bunnings for under $20-$30. For doors that open frequently, a double-sided option like the Sperling 78cm Double Sided Draught Stopper can be effective.
- Weather Stripping: Adhesive foam or rubber strips can seal gaps around window sashes and door frames. A roll of self-adhesive weather seal can cost as little as $10-$20 at hardware stores. The Torv 100cm Clear Door Draught Stopper is a peel-and-stick option for under doors.
- Window Film: Temporary window insulation film can create an insulating air pocket, reducing heat transfer. A DIY kit, such as the 3M Window Insulation Kit (around $50 for 5 windows), can be applied in minutes. For a more robust, but still renter-friendly, option, professional 3M Low-E film can cost around $210-$285/m² installed, bringing single-pane windows close to double-glazing performance at a fraction of the cost.
Estimated Savings: Up to 15-25% on heating costs by effectively sealing your home.
Optimising Your Heating: Smart Choices for Warmth
Heating is often the biggest energy drain in winter. As a renter, major HVAC upgrades are usually out of the question, but you can still heat smarter.
- Portable Heaters: If you must use portable electric heaters, choose energy-efficient models and only heat the room you are in. Panel heaters and oil column heaters are generally more efficient than fan heaters for sustained warmth. Kambrook won Canstar’s 2026 Most Satisfied Customers Award for portable heaters.
| Heater Type | Recommended Model (2026) | Approx. Cost (AUD) | Ideal Room Size | Key Feature |
|---|---|---|---|---|
| Panel Heater | Noirot 2400W Spot Plus White Panel Heater | $549 | Medium to Large | Fast heating, wall-mountable option |
| Oil Column Heater | De’Longhi Dragon 4 Pro Digital Oil Column Heater | $499 | Large Rooms | Sustained radiant heat, electronic thermostat |
*Source: Home Beautiful, July 2026*
**Tip**: For smaller rooms (around 20 sqm), a heater with approximately 1500W (1.5kW) is sufficient. Medium rooms may need 2000W, and larger rooms up to 2400W.
- Thermostat Settings: Every degree you drop your thermostat can save 5-10% on heating. Aim for 18-20°C. Use timers if your heater has them to only heat when you’re home.
- Zoning: Only heat the rooms you are actively using. Close doors to unheated areas.
- Layer Up: Don’t underestimate the power of warm clothing, blankets, and rugs to reduce the need for artificial heating.
Smart Energy Habits & Appliances: Small Changes, Big Impact
- Hot Water: Hot water can account for 25% of your energy bill. Keep showers short, use cold water for laundry where possible, and ensure your hot water system thermostat isn’t set too high (around 60°C is generally sufficient).
- Lighting: Switch to LED globes if your rental still has older incandescent or halogen bulbs. An LED globe uses up to 80% less energy and lasts significantly longer.
- Appliance Usage: Use washing machines, dishwashers, and dryers during off-peak hours if you’re on a time-of-use tariff. Air-dry clothes when weather permits.
- Combat Vampire Power: Appliances in standby mode still draw power. Smart power boards and plugs with energy monitoring can help you identify and eliminate this “phantom load.” Products like the TP-Link Tapo P110M Mini Smart Wi-Fi Plug (from around $20-$30 per plug) or a TP-Link Kasa Smart Wi-Fi Power Strip (HS300) offer energy reporting, allowing you to see exactly which devices are costing you money even when ‘off’. A Smart 6-Way Powerboard with Energy Meter (MS6152) from Mwave (price varies, typically $60-$80) can kill power to multiple ‘green’ outlets when a ‘smart’ outlet device is off.
Leveraging Concessions and Rebates (2026)
The federal Energy Bill Relief Fund ended on 31 December 2025. However, state and territory governments continue to offer targeted concessions and rebates for eligible households, typically ranging from $200 to $800+ annually.
- New South Wales: Eligible renters may qualify for the Low Income Household Rebate (up to $285/year), Family Energy Rebate (up to $180/year), or Seniors Energy Rebate ($200/year). Applications for the 2026-27 Family Energy Rebate open on 10 August 2026. Additionally, the NSW Home Energy Saver Program offers a discount of up to $4,000 for low-income households or concession card holders for energy efficiency upgrades, and renters may be eligible with landlord approval. This discount is expected to open later in 2026.
- Victoria: The Annual Electricity Concession (17.5% off your electricity usage and supply costs, not applying to the first $171.60 of the annual bill) and a Winter Gas Concession are available for eligible cardholders. The Victorian Energy Upgrades (VEU) program provides discounts on energy-saving products like insulation and draught sealing, which renters can access with landlord approval.
- Queensland: Eligible households can claim the Electricity Rebate ($386.34/year as of 2026).
- South Australia: The Cost of Living Concession and Energy Bill Concession provide support for eligible low-income and fixed-income tenants and homeowners.
- ACT: The Electricity, Gas and Water Rebate is set at $800 per year for 2025-26.
Action: Check your state government’s energy portal (e.g., Service NSW, energy.vic.gov.au, qld.gov.au) or contact your energy retailer to register your concession card. Refer to our detailed guide: Australian Energy Rebates in 2026: Your State-by-State Guide After Federal Relief Ends
Innovative Renter-Friendly Options
- Solar Sharer Offer: From 1 July 2026, a new Solar Sharer Offer provides three hours of free electricity daily (11 am–2 pm in NSW and SE QLD; 12 pm–3 pm in SA) for households with smart meters. You don’t need rooftop solar to participate. If you can shift high-usage activities like running the dishwasher, washing machine, or even EV charging into these windows, you can achieve meaningful savings.
- Energy Monitors: While some require electrician installation, plug-in smart energy monitors like the Tapo P110M can give you real-time data on individual appliance usage. Knowing where your power goes is the first step to reducing it.
Bottom Line
Australian renters have tangible opportunities to significantly cut their energy bills this winter. Start by comparing your energy plan immediately, as competitive offers are substantially cheaper than default rates. Prioritise draught-proofing with affordable solutions like door snakes and weather stripping. Be strategic with heating, using efficient portable heaters only where needed and managing thermostat settings. Finally, actively claim any state-based concessions you’re entitled to and explore new initiatives like the Solar Sharer Offer. These combined efforts can lead to hundreds of dollars in savings without requiring major property modifications.