Energy affordability is a key theme in the Victorian Budget 2025–26, with the State Government announcing several initiatives to reduce energy bills for Victorians.
The Budget includes a $50 million investment to fund the $100 Power Saving Bonus, which aims to provide real and immediate cost of living help by cutting the cost of energy bills for some of the state’s most vulnerable families.
Victorian households with an eligible concession card will be able to apply for the Power Saving Bonus later in 2025 through the Victorian Energy Compare website.
The Victorian Government is also investing $600,000 towards the Energy Assistance Program to expand its services in response to increasing demand. It aims to make free one-on-one tailored assistance for vulnerable and hard-to-reach customers struggling with their energy bills.
The 2025–26 Victorian Budget includes a $29.7 million investment for Solar Victoria to deliver an additional 27,000 hot water rebates and continue to help more Victorian households lower their energy bills by installing electric appliances.
The State Government said an average Victorian household with gas and electric appliances can reduce their annual energy bill by around $1400 by going all electric, with the savings rising to more than $2700 a year by adding solar.
A further $12 million will support the introduction of discounts on ceiling insulation through the Victorian Energy Upgrades Program, expected to halve the cost of installation and help families save an average of $400 off their energy bills.
The Victorian Government said the state’s nation-leading offshore wind program will deliver more cheap renewable energy to lower Victorians’ power bills, with the Budget investing $13.2 million towards delivering the first 2GW of offshore wind energy capacity in Victoria.
The State Government also aims to support Victorian manufacturers to have a secure supply of gas into the future, through a $2.3 million investment to develop the Industrial Renewable Gas Guarantee.
Victorian Minister for Energy, Lily D’Ambrosio, said the Budget aims to deliver real help with the cost of living.
“We’re offering immediate bill relief for vulnerable Victorians with another round of the Power Saving Bonus, cutting the cost of energy efficient hot water heat pumps and supporting families with their energy bills with one-on-one support.”
