Australia election 2025: Who has the best plan to slash your energy bills?

Ahead of the 2025 Australian election, here's a look at the Labor and the Coalition's proposed energy policies. HINT: There's a drastic difference.

Our research shows that the cost of living is at the top of the minds of 75% of Aussie voters in this federal election.

So while energy policy isn't the sexiest topic on Earth, it will affect your power bills, our clean energy targets and future jobs.

Luckily for you, I like nerding out on all things energy, so here's a rundown of what's what before you cast that crucial vote (if you haven't already).

You can watch the video or read along if you prefer that instead.

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First up, what do Labor and the Coalition actually agree on?

Both parties are backing net-zero by 2050 and have agreed to extend the energy rebate to the end of the year.

That's an extra $150 going to every Aussie household and about a million small businesses paid in $75 quarterly instalments.

After that, it's anybody's guess.

Okay, now let's talk about where the real difference lies.

What is the Coalition promising for power bill relief as part of its election campaign?

This election is shaping up to be a tug-of-war between nuclear and renewable energy, especially after the Coalition released its costings ahead of the 3 May vote.

It's advocating a nuclear future for Australia (more on that shortly) and plans to scrap several of Labor's clean energy programs, redirecting or cutting funding from:

• The $2.3 billion Cheaper Home Batteries Program – set to offer households a 30% discount on solar batteries from 1 July, but Dutton says he won't go ahead with it.
• The $26 billion Future Made in Australia Program – supports the transition to a net-zero economy.
• The $19 billion Rewiring the Nation Program – aims to modernise the electricity grid and reduce the cost of essential infrastructure to make energy more affordable.
• The $3.2 billion Electric Vehicle Incentives Program – provides fringe benefits tax exemptions for electric vehicles.
• The Net Zero Economy Agency – established to coordinate Australia's transition to a net-zero economy, but the Coalition plans to dismantle it.

Nuclear energy

The Coalition wants to build a whole new nuclear industry from scratch. According to its modelling, by 2050, we'd get:

• 38% of our power from nuclear,
• 54% from renewables,
• and the rest from storage and gas.

To do that, it would have to replace seven coal plants with nuclear reactors. The first few could be up and running in 10–12 years. But Australia's science agency, the CSIRO, says it's more like 15... at least.

And the price tag? Around $331 billion to build and operate a nuclear industry by 2050.

But here's where it gets contentious. The CSIRO and Australian Energy Market Operator have consistently said nuclear is significantly more expensive than renewables.

Some reports even suggest nearly double the cost. The Coalition rejects that, claiming Labor's plan will actually cost more because of all the extra transmission lines needed to connect renewables to the grid.

And here's the thing. While that nuclear future is being built, we'd still be relying on coal and gas, which are getting more expensive.

Coal plants are aging and unreliable. Gas is more stable but costly, mainly because so much of it is locked into export contracts.

Gas reservation scheme

So the Coalition has added another plank to its energy policy - a gas reservation scheme for the east coast market.

It'll help keep more gas in Australia, ease supply issues and bring prices down.

Its modelling shows this could cut household gas bills by 7% and electricity bills by 3%.

That's roughly $110 for the average household, but you might have to wait up to a year for any price reductions.

It's also pledged to approve the North West Shelf gas expansion within 30 days of being elected as part of its $1 billion spend on energy infrastructure.

Now, flip the coin - here's Labor's plan for power bill relief as part of its election campaign?

Renewable energy

Labor's going all in on renewables as part of its election promise, targeting 82% renewable energy by 2030, plus a 43% emissions reduction on the way to net zero.

The strategy is to build a grid powered mostly by solar, wind and batteries.

It's committing to more than 4,000 km of high-voltage transmission lines to connect up clean energy projects and bring power across the country.

Home battery discounts

It's also offering a 30% discount on home batteries to help households store solar energy and cut down on peak-hour costs in the evening.

That's when power's usually most expensive.

Given batteries cost around $10,000 to $12,000, you're still going to have fork out about $8,000 upfront.

And yes, we've got to mention it. Labor went into the last election saying it would cut your power bill by $275.

That didn't happen.

To be fair, that figure came from modelling based on assumptions that didn't account for major global events like the war in Ukraine and surging energy prices worldwide.

So here's where we're at with 2025 election promises...

• Labor wants to supercharge renewables and modernise the grid.
• The Coalition wants to build a nuclear industry, fast-track gas and boost reliability.
• Oh, and the Greens - along with some independents - are pushing for stronger climate goals and want to see an immediate stop to new coal and gas projects, plus an end to government funding for fossil fuels.

Both the Labor Party and the Coalition's plans come with big costs, both in dollars and in time.

Both claim to be more affordable in the long run.

And honestly? It's not clear-cut. Rising electricity costs are complex, and no one policy is going to fix it overnight.

UPDATE 2 May 2025: We updated our news piece with new information on the Coalition's costings ahead of the 3 May vote, plus plans to axe or reduce funding from Labor's clean energy programs.