Why Are Power Prices Rising in Perth Again?
The Perth power price increased by 2.5% as of 1 July 2025. This increase is a result of changes approved by the state government and the increased cost of transporting and generating electricity.
Along with the current Perth power price hike, there have been consistent increases in power prices over the last decade. In the coming years, power prices are expected to continue rising.
Fortunately, there are ways to help protect your home or business against rising power prices. Here, we’ll explain the recent and upcoming electricity price increases in Perth and how to protect yourself against them.
What’s Driving Perth’s Power Price Increases?
WA’s Unique Pricing Model
Synergy (Electricity Generation and Retail Corporation) is Western Australia’s primary electricity and gas provider. Synergy is owned by the Western Australian government. This means WA electricity prices are regulated annually by the State Government, not the Australian Energy Regulator. Serving over a million customers, Synergy has a massive impact on the wholesale electricity market.
2025 Perth Power Price Increase
According to Synergy, “The State Government has recently approved price changes to selected residential and business electricity tariffs”. The Perth power price increase is set to take effect on 1 July 2025.
The Perth power price increase of 2.5% is a result of:
- An increase in Synergy’s Home Plan
- An increase in Synergy’s standard fees, such as the demolition fee increasing to $571.43 in 2025 (compared to $518.10 in 2023)
- An increased metre reprogram fee (up to $109.25 in 2025 compared to $106.92 in 2024)
Learn more about Synergy’s Perth power price increase here: Synergy Rates & Tariffs 2025 – Electricity Cost Per kWh.
Impact of Gas-Fired Power and Network Costs
Gas prices and electricity rates are strongly linked in Australia. Generally, gas prices have a significant influence on wholesale electricity prices. This means that when gas prices rise, you can expect electricity prices to follow.
Because the majority of WA’s electricity is generated using coal and natural gas, price is based on supply and demand. If coal or natural gas can’t meet demand, the price goes up. With a finite supply of these resources and increasing demand, energy prices are expected to continue rising.
Cumulative Increases Since 2014
It is easy to look back and see that energy prices have been rising steadily since 2014. For instance, just in the last 10 years, one kilowatt hour (kWh) has risen by 25.9%.
For an average household, this can lead to noticeable increases in power bills every year. This trend of rising power prices is expected to continue.
How It Affects Your Household or Business
Real-World Cost Increases
Here’s a quick example of how the Perth power price increase translates to an average home:
| 2015 | 2025 | |
| Energy Usage | 25 kWh/day | 25 kWh/day |
| Approx. Cost per kWh | 24.5 cents per kWh | 32.3 center per kWh |
| Total Daily Power Cost | $6.12 per day | $8.075 per day |
In this example, the same amount of power per day in 2025 costs the average homeowner almost $2 more per day compared to 2014. Over a month, this is a $60 increase for the same amount of power.
These cumulative power increases can put a strain on families over time. Fortunately, residential solar systems can provide a hedge against these rising power costs.
Business Exposure to Rate Hikes
Did you know some WA businesses have seen electricity price hikes up to 50 percent? For some businesses, this can translate to thousands of extra dollars in power bills every month.
Small businesses can face especially noticeable impacts when dealing with Perth power price increases. To maximise profits and enjoy more predictable prices, many businesses are turning to commercial solar systems for relief.
We’re dedicated to helping businesses across WA navigate the challenges associated with rising power prices. Our solar technicians can evaluate your site and energy usage to estimate your potential savings from a commercial solar system. We can also help you find any eligible rebates or tax incentives to offset the initial investment and maximise ROI.
How Solar Panels Can Offset Price Hikes
Lower Daily Grid Usage
A solar system can reduce your dependence on peak-hour electricity. This can lead to significant savings for your home or business.
Save More with Battery Storage
Investing in battery storage for your solar system can lead to even more power savings.
Standard solar systems only generate energy during the day. Extra energy is exported back to the grid. Adding a battery system allows excess energy to be stored for later use.
As power prices increase, solar battery storage is becoming an increasingly attractive investment.
Along with cheaper electricity bills, the benefits of solar battery systems, such as Sungrow or Powerwall, include:
- Pull power stored in the solar batteries during cloudy days or power outages
- Reduce electricity bills even further
- Increase self-sufficiency and reduce reliance on the grid
- Reduce your carbon footprint even further
Export Benefits via DEBS
Another way solar systems lead to cost savings is through the Distributed Energy Buyback Scheme (DEBS). This government solar incentive pays a fixed rate for excess solar energy you export back to the grid.
As of 1 July 2024, the DEBS rates for Synergy customers were:
- Peak Rates: 10 cents per kilowatt-hour (kWh) for electricity exported to the grid between 3 pm and 9 pm
- Off-Peak Rates: 2 cents per kilowatt-hour (kWh) for electricity exported between 3 pm and 9 pm
Learn more about other WA solar rebates here: Solar Rebate WA & Incentives – How Does It Work in Perth?
Take Back Control with a Custom Solar Setup
Residential Solutions
Residential solar systems can help Perth homeowners reduce bill shock and become more independent of the grid. Installing a custom residential solar system can reduce monthly power bills and offer control against ongoing power price increases.
Curious how much a residential solar system could save you each month? Our expert solar technicians can do a free evaluation and calculate your potential cost savings.
Commercial Systems
Companies can enjoy a variety of cost savings by investing in a commercial solar system, including:
- Lower electricity bills and protection against rising power rates
- Various government incentives are available to offset the initial investment
- Boost your company’s clean energy usage and set an example for other businesses to follow
- Low maintenance and long lifespan
Start with a Free Assessment
Although power prices are predicted to continue rising, solar systems offer long-term control. Ready to beat future Perth power price increases? Fortify yourself against power price hikes with a custom solar system installation.
Lock in your savings before the next price hike hits and take control of rising power bills. Contact us for a free solar quote tailored to your needs.
