July 2026 Electricity Standing Offers: What Changed for Hot Water

The 2026–27 Default Market Offer took effect on 1 July. It regulates standing offers; your own bill and hot water costs depend on your retailer, tariff and usage.

Updated 10 September 2026. The AER’s final Default Market Offer for 2026–27 took effect on 1 July. It sets regulated standing-offer limits and a comparison benchmark, not an identical price cut for every household.

Check your actual tariff

A market offer, time-of-use plan, controlled-load circuit and demand tariff can produce different outcomes. Compare the rates and service charges on your own bill instead of applying a headline percentage reduction to last year’s bill.

Electric storage and heat pumps

An electric storage heater uses an element; a heat pump uses electricity to move heat from outdoor air. The energy difference depends on the model, weather and demand. A change in electricity price does not give every household the same dollar saving.

Our updated calculator starts with AGL Ausgrid standing-offer rates and explicit energy assumptions. It allows a household size, selected current system, electricity rate, controlled-load and PV scenario. It shows a comparison, not a product rating or guaranteed payback.

Gas needs a separate comparison

Gas has separate usage blocks and a daily supply charge. If hot water is the only gas appliance, include the charge once; if other appliances remain, do not promise it will disappear. Ask the retailer about actual disconnection arrangements and any fees.

Use the quote and the model together

Compare the property assessment and on-site installation quote with realistic running-cost assumptions. Incentives may reduce upfront cost for eligible installations, but are not part of the calculator’s annual energy result.