Tasmania Electricity Cost Calculator
Tasmania's electricity system is unique in Australia, around 85% of generation comes from hydroelectric power, making it one of the cleanest electricity grids in the country with very low emissions intensity (approximately 0.1 kg CO₂-e/kWh vs the national average of 0.7 kg CO₂-e/kWh). TasNetworks operates the distribution network and is connected to the mainland NEM via two Basslink HVDC cables under Bass Strait. Aurora Energy is the government-owned retailer, though several competitive retailers also offer plans. For 2025–26, typical Tasmanian usage rates range from 27–34 cents/kWh, with a daily supply charge around 95–105 cents. Tasmanian households consume approximately 6,000–8,000 kWh per year, above the national average due to widespread electric heating in a cooler climate. Tasmania has Australia's lowest grid emissions intensity and some of the highest regulated solar feed-in tariffs (8–11 cents/kWh). The Tasmanian Government's Low Income Household Rebate provides .60/year to eligible concession cardholders.
How the calculations work
Daily cost
Each appliance's daily cost is calculated as:
cost = (watts ÷ 1,000) × usage (kWh/day) × rate ($/kWh) × days + supply charge × days
For example, a 1500W appliance running 4h/day at 26.4¢/kWh:
(1500 ÷ 1,000) × 4 kWh × 0.264 × 30 days = $4.75
Where the supply charge is a fixed daily cost added regardless of usage.
Solar estimate
Annual solar production splits into two parts, what you use at home and what you export to the grid:
annual production (kWh) = system size (kW) × output (kWh/kW/year) self-consumed (70%) = annual production × 0.70 exported (30%) = annual production × 0.30 self-consumption savings = self-consumed kWh × electricity rate export earnings = exported kWh × feed-in tariff rate
The 70/30 split is a representative assumption, actual self-consumption rates vary from 20% to 50% depending on household occupancy patterns and usage timing.
Frequently Asked Questions
Why does Tasmania have the cheapest electricity in Australia?
Tasmania has Australia's lowest residential electricity prices, at approximately 26.4 cents per kWh as of 2025-26, with a daily supply charge of around 95 cents/day. This is primarily due to Hydro Tasmania, which generates the majority of the state's electricity from low-cost hydro power. The hydro dams provide reliable, renewable generation at a fraction of the cost of fossil-fuel generation on the mainland. This competitive generation advantage flows through to retail prices.
What is Tasmania's feed-in tariff?
Tasmania has Australia's highest regulated minimum feed-in tariff at approximately 8.8 cents per kWh as of 2025-26. This is significantly higher than Victoria (5.2 cents), South Australia (around 5 cents), and Queensland (6.8 cents). Combined with Tasmania's low retail electricity prices, solar payback in Tasmania is competitive despite the state's lower solar irradiance levels.
Is solar worth it in Tasmania?
Tasmania has the lowest solar irradiance of any Australian state at approximately 3,400 kWh per kW per year, meaning a 6.6kW system produces noticeably less energy than the same system in Queensland (4,400 kWh) or SA (4,800 kWh). However, Tasmania's combination of high feed-in tariff (8.8 cents) and low retail rates means the economics are still reasonable, particularly for households with high daytime consumption. A 6.6kW system in Hobart produces roughly 22,400 kWh per year, saving around $750 in avoided purchases plus $590 in export earnings, for a total benefit of roughly $1,340 per year.
How much does the average Tasmanian electricity bill cost?
A typical Tasmanian household pays approximately $1,600-$1,900 per year for electricity, significantly lower than the national average of around $2,200. This is the lowest average electricity bill of any Australian state. The combination of low-generation costs from hydro power and a smaller, more contained network infrastructure contributes to these lower prices. Tasmanian households are among the few in Australia who may find battery storage harder to justify economically, due to the already-low grid prices and relatively low solar irradiance.