Perth electricity prices keep rising — how solar locks in your rate

Synergy's A1 tariff went from 26.47c/kWh in 2020 to 32.37c/kWh in 2025 — a 22% increase in five years. The July 2025 increase was 2.5%. Nobody expects that trajectory to reverse.

For a household using 20 kWh/day, that 6c/kWh increase translates to an extra $438/year compared to 2020 rates. And that's before the supply charge increases.

Solar doesn't just save money today. It locks in your electricity cost at effectively $0/kWh for self-consumed solar for the next 25 years. That's the hedge.

The price history: it only goes one way

WA electricity prices are set annually by the state government through the budget process, not by market forces. This means prices are politically moderated — but the trend is still up.

| Year | A1 Rate (c/kWh) | Annual Increase | |---|---|---| | 2020 | 26.47 | — | | 2021 | 27.66 | +4.5% | | 2022 | 28.82 | +4.2% | | 2023 | 29.71 | +3.1% | | 2024 | 31.58 | +6.3% | | 2025 | 32.37 | +2.5% |

Average annual increase: ~3.5% over the past 5 years. Some years higher (6.3% in 2024), some lower (2.5% in 2025). The overall direction hasn't reversed once.

What's pushing prices up

Wholesale energy costs. WA generates a significant portion of electricity from natural gas and coal. As these fossil fuel plants age and gas prices fluctuate, the input cost rises.

Grid upgrades. AEMO forecasts WA electricity demand increasing by 5.7-12.2 TWh over the next decade. The SWIS grid needs billions in upgrades to handle this growth and integrate renewables. Someone pays for that — ratepayers.

Declining coal reliability. Collie's coal plants are ageing. Unplanned outages have increased. The $2.8 billion committed to network upgrades and renewable replacement won't be free.

Falling export rates. On the other side, DEBS feed-in rates have dropped over 30% since 2020. The grid is paying less for your excess solar, which means the value of self-consumption (avoiding the import rate) becomes even more important.

What 3% annual increases mean over 25 years

This is the number that makes solar investors smile.

If electricity prices continue at 3% annual increases (conservative based on history):

| Year | A1 Rate | Your annual bill (20 kWh/day) | |---|---|---| | 2026 | ~33.3c | $2,431 | | 2030 | ~37.5c | $2,738 | | 2035 | ~43.5c | $3,176 | | 2040 | ~50.4c | $3,679 | | 2050 | ~67.7c | $4,942 |

Over 25 years, a household doing nothing pays a cumulative $85,000+ in electricity at 3% annual increases. That's before any larger price shocks.

A household with 6.6 kW solar (self-consuming 60%) pays roughly $34,000 over the same period. The difference: $51,000 in avoided costs from a $5,500 solar investment.

With a battery boosting self-consumption to 85%, the cumulative bill drops to about $12,000 — saving $73,000 over 25 years from a $11,000 solar + battery investment.

Solar as a 25-year price lock

When you install solar, every kWh you self-consume has a locked-in cost: $0. The panels are paid for, the sun doesn't charge you, and generation continues for 25+ years.

As grid prices rise, the value of each self-consumed kWh rises with it. Your 2026 solar installation saves you 32c/kWh today. In 2035 it saves 43c. In 2045 it saves 58c. Same panels, increasing returns.

This is why solar payback calculations that use a flat rate understate the actual returns. A system that appears to pay back in 4 years at today's rates actually pays back in closer to 3.5 years when you account for rising prices during those 4 years.

The battery price hedge

Batteries add another layer. Without a battery, you export excess solar at 2-7c/kWh. With a battery, you store it and use it at whatever the evening rate is.

As evening rates rise (and they will — the peak window is where grid stress is highest), your battery's value increases proportionally. A battery that saves you 25c/kWh spread today might save 35c/kWh in 2030 and 45c/kWh in 2035.

The battery's payback shortens over time, not lengthens.

What about the July 2026 increase?

No official figure yet — the WA government announces tariff changes through the state budget, typically in May for July implementation. Based on the 2.5-3% trend, expect:

• A1 flat rate: ~33.0-33.4c/kWh (up from 32.37c)
• Supply charge: ~$1.32-1.35/day (up from ~$1.29)
• Midday Saver peak: ~55.0-55.5c/kWh (up from 53.84c)

These are estimates based on historical patterns, not confirmed figures.

The bottom line

Every year you wait to install solar, you pay more for electricity AND get a smaller rebate. The gap widens in both directions:

• 2026: Pay 32c/kWh, get $3,100 STC rebate
• 2028: Pay ~34c/kWh, get ~$2,500 STC rebate
• 2030: Pay ~36c/kWh, get $0 STC rebate (scheme ends)

The best time to install solar was 5 years ago. The second-best time is now.

Related Reading

• Solar Panels in Perth — what actually matters — System sizing and hardware choices.
• Midday Saver vs A1 — which tariff saves you money? — Optimise your current tariff while considering solar.
• WA Rebates Are Changing in 2026 — Timeline of rebate reductions.

See what rising prices mean for your household: Our Savings Planner models 25-year projections with configurable electricity price inflation. Calculate your savings.

Sources: Synergy Price Changes, Perth Solar Warehouse Rate History, WA Government Electricity Pricing