What to look for in an energy plan: a simple guide for renters and small businesses
With energy bills climbing across Australia, finding the right energy plan has never felt more important- or more confusing. The good news is that making a better choice doesn't have to be too complex. Here's what to look for:
Understand what type of plan you're on
Most households and small businesses are on one of two types of plans. A flat-rate tariff charges the same price for electricity regardless of when you use it- simple, but not always cheapest. A time-of-use tariff charges different rates depending on the time of day, with lower off-peak rates (typically overnight and on weekends) and higher peak rates (usually evenings and on hot or cold days). If you have a smart meter and can shift when you run appliances (e.g. air conditioners, dishwashers, washing machines), a time-of-use plan can meaningfully reduce your bill. If your usage patterns are less flexible or less predictable, a flat rate may offer more stability and easier budgeting.
For small businesses, the key questions is what you use most of your electricity. If your business operates mainly during daytime hours, shifting load to off-peak periods through a time-of-use tariff may save you money. Many small businesses stay on whatever plan they are first set up with- so if you haven’t reviewed yours recently, it's worth comparing against what else is available — the savings can be significant.
Compare the whole plan, not just the rate
It's tempting to chase the lowest per-kilowatt-hour rate, but that number alone doesn’t tell you the full story. Your bill includes a daily supply charge plus usage charges based on consumption — so it's important to compare the total estimated cost, not just the usage rate. Use the Australian Government's free and independent comparison tool, Energy Made Easy, to compare plans side by side based on your actual usage. It takes about 15 minutes and could save you hundreds of dollars a year.
Look for the GreenPower tick
If reducing your environmental footprint matters to you, look for plans that carry the GreenPower accreditation. GreenPower is 100% renewable electricity available for households and businesses through most energy retailers in Australia, with over 360,000 households and businesses already buying GreenPower. It's a government-accredited program, and you can choose to match 10%, 20% or 100% of your electricity use with accredited renewable energy- the more you match, the more you support new renewable generation being added to the grid. It does cost a little more, but for many people and businesses it's a meaningful and low-effort step.
Don't set and forget
Energy plans change, and so does your usage. Set a reminder to review your plan once a year- at the same time you'd review your insurance or subscriptions. A better deal may be just a phone call away.
And of course- if you want to go further than what any retail energy plan can offer, community solar is the next step. Get in touch with Pingala to find out more.
References
NSW Government, How to maximise time-of-use electricity tariffs, energy.nsw.gov.au
Australian Government, Energy Made Easy — free energy plan comparison tool, energymadeeasy.gov.au
GreenPower, National GreenPower Accreditation Program, greenpower.gov.au
Australian Government Department of Climate Change, Energy, the Environment and Water, Electricity pricing plans and tariffs, energy.gov.au