Market Update | 21 March 2025

• Substantial Increases to Energy Prices Tabled for 2025 / 26
• Battery Installations Surging
• NSW, SA and VIC State Energy Savings Schemes Under Review

Substantial Increases to Energy Prices Tabled for 2025 / 26.

Last week the Australian Energy Regulator (AER) released its draft of the proposed changes to Default Market Offer (DMO) energy prices for residential and small business customers in NSW, South-East Queensland and South Australia.

As a result of cost pressures, notably from wholesale market and network costs, the AER is proposing to raise the reference price by up to 8.9% – although these increases vary markedly by region with NSW customers set to be impacted the most.

• • NSW (Ausgrid, Essential & Endeavour) – increases of between 7.7 and 8.9%
  • SE Queensland (Energex) – increases of between 2.5 and 5.8%
  • SA (Power Networks) – increases of between 4.4 and 6.6%

While the DMO is the reference price for all market offers in each region, the amount people will pay on their future energy bills will ultimately be determined by the offers that the energy retailers provide to their customers.

These proposed increases will further support the ongoing efforts of the energy efficiency industry to reduce consumption and therefore the impact of ever-increasing energy costs. It will also encourage consumers that have a choice of retailer to shop around to try and find the best energy deal.

Battery Installations Surging.

Rising energy prices, combined with ongoing reductions in solar feed-in tariffs have fuelled growing interest in battery storage for Australian households and businesses. Throughout the calendar year 2024, it’s estimated that approximately 75,000 batteries were installed across Australia – an increase of almost 50% on the previous year.

In NSW, the state government is now offering incentives that will help reduce the cost of batteries – since the launch at the end of last year, Ecovantage has seen a strong level of interest and uptake of these incentives among solar installers. Other state and territory governments, such as Victoria, Tasmania and the ACT are now providing interest-free loans for batteries. Several energy retailers are also now offering battery deals including virtual power plant participation and discounts on battery installations.

In more good news, along with an increasing number of battery manufacturers offering products to the market, a fall in the cost of batteries is anticipated to improve the business case for the average homeowner. These changes are expected to fuel strong growth in batteries throughout the remainder of 2025 and beyond.

NSW, SA and VIC State Energy Savings Schemes Under Review.

As referenced in our recent Market Updates, the three state-based Energy Savings Schemes are all currently undergoing major reviews, which may have significant implications for the types of products and associated incentives available for energy efficiency upgrades.

Ecovantage will provide further information on any changes that come out of these reviews and the implications to our partners and clients. For more information, please contact the Ecovantage Account Management Team.

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.