How to Compare Energy Plans After the 2026 DMO Update in Australia

The Australian Energy Regulator (AER) announced new Default Market Offer (DMO) prices on 26 May 2026. The changes start on 1 July 2026. They are applicable in NSW, South Australia, and South East Queensland. Many homes will see smaller savings (or slight increases) unless switched to a competitive plan. The new free midday electricity window is also opening for smart meter homes. It can be beneficial for both renters and owners. If you haven't looked over your energy plan in a while, then this is the time to do so.

Key Takeaways

• DMO 8 cuts flat rate prices by 3.4% to 5.0% in NSW and by 7.2% in South East Queensland. That's not the case in South Australia. The flat-rate customers there will be paying 1.4% more, or approximately $33 more per year.

• The lowest market is 19% to 25% cheaper than the DMO benchmark. As per the ACCC, the NSW data shows that customers who are not on their retailer's best plan could save an average of $291 a year by asking their current retailer to switch them.

• The Solar Sharer Offer begins on 1 July 2026. Smart meter homes can receive up to 24 kWh of free electricity every day for three hours in the middle of the day.

• Battery storage allows you to store the free power from the day for use later. It can be used at night, when electricity prices are highest.

• There are two free government resources that allow you to compare energy plans. Energy Made Easy and Victorian Energy Compare show all offers with no commercial bias.

What the 2026 DMO Update Means for Your Electricity Plan

DMO 8 is the 8th annual Default Market Offer. It adjusts prices in three regions. It also introduces new regulations on how retailers can charge you.

The Safety Net Benchmark

The Default Market Offer is the highest price that a retailer can offer on a standing offer. This price is determined by the AER annually. Locks in on 1 July and is for 12 months. All retailers are required to demonstrate in their advertising how their plans differ from the DMO.

The DMO is for NSW, South Australia, and South East Queensland. Victoria has a Victorian Default Offer system. The Essential Services Commission will drop by 5% in 2026–27, which will save homes approximately $84 per year.

Only 10% or fewer of homes are in a standing offer. The greater danger for most Australians is an old market offer that is no longer value for money.

Tariff Caps

DMO 8 brings in tariff caps for the first time. Previous rules only limited the annual bill. The new caps also restrict the maximum supply charges and per-unit usage rates. This is for flat rate, time-of-use, and Solar Sharer plans.

This makes it much easier to compare offers. The retailer is no longer allowed to offer a low rate and then charge an additional fee in the daily charge. The AER also introduced a new rule to safeguard small customers on standing offers.

Time-of-Use Reference Prices

All three DMO regions have lower prices for time-of-use customers. NSW TOU customers save between 3.7% and 7.7%. South East Queensland TOU customers can save up to 10.7% (around $229 per year). South Australia TOU customers save 1.1%.

AER Chair Clare Savage explained that there were three factors behind the cuts. Electricity prices decreased at the wholesale level. Environmental scheme costs reduced. The largest component of most bills, network charges, also declined in most areas, but increased slightly in some network zones.

Conducting an Electricity Retailer Comparison

The quickest way to reduce your bill is to compare your plan. One thing stood out from the ACCC's electricity inquiry, which was released in December 2025. Those on plans older than three years pay approximately $221 more annually than those on new plans.

Standing Offers vs Market Offers

A standing offer is a simple offer. The terms are prescribed by law. If you've never changed retailers, you're probably on one. A market offer is a plan that offers lower rates. According to the federal Minister, the best market is 19% to 25% cheaper than the DMO benchmark, based on AER data.

The ACCC discovered that 36.5% of customers on market offers are paying at or above DMO levels. That's close to 2.5 million houses. Around 434,000 of those customers pay more than 10% above the benchmark. There is no cost to checking your plan, and it takes approximately 20 minutes.

Evaluating Tariff Types

As much as choosing the right retailer, it is important to choose the right type of tariff. The three major options are listed below in the table.

A time-of-use plan is suitable if you can use appliances during off-peak times. A controlled load tariff is a suitable add-on to electric hot water systems. It operates your hot water system during lower demand periods. Check with your retailer to see if your meter is compatible.

Independent Tools

Energy Made Easy is a free service of the AER for NSW, QLD, SA, Tasmania, and the ACT. Victorian Energy Compare is used by Victorian residents. Both tools display real-time offers compared to the DMO price. The two tools do not charge fees from retailers. Both the ACCC and energy.gov.au suggest these as your first port of call.

Factoring in the Solar Sharer Offer and Feed-in Tariffs

The feed-in tariff prices have been declining over the years. It's better to retain solar power in your home than to send it to the grid. The Solar Sharer Offer provides a fixed amount of free electricity to homes during a specific time of day. Participation is not required to have rooftop solar.

Falling Export Rates

The majority of feed-in tariffs are now significantly lower than the price of importing electricity. This translates to a higher value of solar power for personal use than for export. Australia's midday surplus has not been able to be used to help homes without solar. The Solar Sharer Offer changes that.

The Midday Free Window

The Solar Sharer Offer was announced by the government in November 2025. The regulations implementing the offer were finalised in March 2026. It requires retailers with 1,000 or more customers to offer 3 hours of free daily electricity. The AER verified the free windows. NSW and South East Queensland get 11 am to 2 pm. South Australia gets 12 pm to 3 pm. You can use up to 24 kWh of free electricity per day during that instance.

The offer starts 1 July 2026. It is opt-in. It is available for renters and owners who have a smart meter.

Maximising Value

The Solar Sharer Offer costs the same annually as a standard DMO time-of-use plan. However, rates outside the free window are 1-4 cents per kWh higher. Compare a full rate schedule on Energy Made Easy to a standard TOU plan before you choose to opt in. If you can move your dishwasher, washing machine, and hot water to the free window, you will save. If you can't move those loads, a typical TOU plan might be cheaper.

Maximizing Savings with Battery Storage After the DMO Update

A good plan reduces your unit cost. Battery storage reduces the amount of units you take from the grid. They both help to reduce your bill.

The Load Shifting Strategy

Load shifting involves storing up cheap electricity and consuming it when prices rise. A home battery charges for free during the Solar Sharer Offer. During the evening peak (usually 3 pm to 9 pm), your home is powered by the battery rather than the grid. The savings per cycle accumulate quickly in South East Queensland, where peak TOU rates are some of the highest in the country.

BLUETTI Elite 200 V2 and Elite 300

The most expensive time of the day on the grid is the evening peak. The BLUETTI Elite 300 portable power station is crucial here. It addresses this issue head-on. It has a 3,014 Wh capacity and a 2,400W output. That's enough to power key appliances for an entire evening peak. It has a quick UPS switch-over that ensures that sensitive devices continue to function in the event of a power outage.

For smaller homes or those who wish to use their unit for travel, the Elite 200 V2 is the unit to choose. Both portable power stations can be charged during the Solar Sharer Offer free window and power your home during peak hours.

BLUETTI EP760

The BLUETTI EP760 is a permanent home storage system. It begins at 4.96 kWh and increases to 51.6 kWh with the addition of battery modules. It stores the solar energy generated during the day. That power can then be used in the evening when peak grid prices are in effect. According to BLUETTI, the EP760 can power up to 80% of well-designed homes.

Understanding the Limitations

The initial cost of battery storage is expensive. The payback period will vary based on your electricity consumption, local feed-in tariff, and load shifting. The Solar Sharer Offer free windows for just 3 hours a day. The daily limit is 24 kWh. The offer alone will not save you much if you can't move your usage to that window. A home battery backup can fix this. It charges during the free window and meets your evening demand without you having to be home.

Taking Control of Your Energy Future in 2026

This year, prices are declining in most areas. New rules simplify offers to compare. The Solar Sharer Offer is available to renters and solar owners. Also, it can save them money. The ACCC data is unambiguous. The average home that is losing $221 per year isn't on a bad plan by accident. They just haven't compared recently.

You can find out where you're at by checking a quick Energy Made Easy or Victorian Energy Compare. If your plan is over two years old, then there is probably a better deal available.

FAQs

• How Do I Compare Energy Plans After the DMO Update in Australia?

This is simple with free government tools. If you live in NSW, QLD, SA, Tasmania, or the ACT, visit Energy Made Easy. Victorian Energy Compare is used by Victorian residents. Enter your address and recent usage and view offers sorted by annual cost.

• What Is the Best Energy Plan After DMO for Solar Owners?

In general, a time-of-use market offer with a reasonable feed-in tariff and a low import rate is a good place to begin. Next, compare the Solar Sharer Offer to the higher off-peak rates. See if it is more beneficial. A battery can help either of these options work better. It does that by storing electricity generated during the day for use at night.

• Should I Do an Energy Plan Switch this year if I Already Have a Market Offer?

Yes, particularly if your plan is over 2 years old. The ACCC discovered that older plans are approximately $221 more expensive per year than new plans. Most switches will be made within 2-3 business days with no interruption in service.

• Is Solar Sharer Offer Beneficial for Renters?

Yes. The offer provides renters with free access to the solar surplus in the middle of the day in Australia. No need for roof-top panels. The amount of free electricity is up to 24 kWh per day within the specified time periods. This is from 11 am to 2 pm in NSW and South East Queensland and 12 pm to 3 pm in South Australia.