Australian businesses are bracing for another spike in electricity costs, with the Australian Energy Regulator (AER) confirming that power prices will rise by up to 9.7% from July 1, 2025. This increase affects small, medium, and large commercial customers alike — with implications for operational budgets, procurement decisions, and future planning.
In this article, we break down what the rise means for different states and business types — and why so many Australian companies are now investing in commercial solar as a way to secure their energy future.
#⚡ Electricity Price Rises by State
📍 New South Wales (NSW)
Small business customers on the standard retail offer in NSW can expect:
- Ausgrid region: price increase of 8.2%
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Endeavour region: increase of 7.5%
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Essential Energy customers: increase of 9.4%
For businesses consuming large volumes of power during peak hours, this could mean thousands in additional costs annually.
📍 South East Queensland (QLD)
In QLD, where most businesses are on market offers, the standard pricing still serves as a benchmark:
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Small businesses could see a 7.0% to 9.2% increase
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Large commercial operations may be impacted even more if they’re on variable rate contracts
📍 Victoria (VIC)
The Victorian Default Offer (VDO) will also increase from July 1:
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Small businesses could face increases of up to 6.9%
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This follows already high market-driven pricing experienced during 2024
Victoria’s competitive energy market means outcomes may vary, but prices remain consistently higher than pre-2020 levels.
📍 South Australia (SA)
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Businesses on standing offers could see an increase of 7.2% to 9.7%
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Market offers have already increased in anticipation of July pricing resets
South Australia also remains one of the most expensive states in Australia for electricity — particularly for hospitality and manufacturing sectors.
What About Other States?
While WA, NT, and Tasmania operate under different regulatory structures, price pressures are mounting there too. Wholesale and fuel cost surges are a nationwide issue — not confined to the National Electricity Market (NEM).
#What Businesses Are Doing About It
While some businesses are renegotiating energy contracts or trying to reduce peak usage, others are taking a longer-term approach by generating their own power.
That’s why commercial solar adoption continues to rise — not as an eco-initiative, but as a cost-saving, risk-reducing investment.
Example: What a 9.7% Increase Could Cost
| Current Monthly Bill | Annual Bill | New Annual Bill (+9.7%) | Increase |
|---|---|---|---|
| $1,200 | $14,400 | $15,796.80 | +$1,396.80 |
| $2,500 | $30,000 | $32,910.00 | +$2,910.00 |
| $5,000 | $60,000 | $65,820.00 | +$5,820.00 |
#Wondering If Solar Could Work for Your Business?
If rising power prices are on your radar, now’s a good time to explore whether commercial solar could help future-proof your business and reduce long-term costs.
At Sharp EIT Solutions, we offer a free, no-obligation commercial solar assessment to help you understand:
- How much you could save on electricity
- What type of system would suit your site and usage
- Your potential return on investment over time
- You don’t need to be “ready to install” — just ready to explore the idea.
👉 Request a Commercial Solar Assessment
Our team will review your energy usage and provide tailored insights based on your business and location.
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#How Much Could Your Business Save?
Looking to reduce your business’s energy costs with sustainable solar solutions? Fill out the form below to request a free, no-obligation consultation and discover how Sharp EIT Solutions can help you implement a commercial solar power system tailored to your needs.
#Frequently Asked Questions About the July 1 Energy Price Rise
Electricity prices are rising due to higher wholesale energy costs, increased demand for coal and gas, network infrastructure upgrades, and regulatory adjustments set by the Australian Energy Regulator (AER).
The AER has confirmed increases of up to 9.7% for small business customers, depending on your location and retailer. This could mean thousands of dollars in additional yearly costs for many Australian businesses.
New South Wales, Queensland, Victoria, and South Australia are all affected under the Default Market Offer (DMO). Each region has different percentage increases depending on your energy provider and tariff type.
Yes. Many businesses are turning to commercial solar to reduce reliance on the grid, offset rising costs, and lock in long-term energy savings. Solar systems can cut electricity costs by 30% to 70% during daylight hours.
Yes. Acting before July 1 allows your business to start saving sooner and may also align with EOFY tax incentives. The sooner you install, the faster you reduce your exposure to rising electricity costs.
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