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Australian consumers are embracing renewable energy solutions, but many are unconvinced the benefits of the energy transition will be shared with them.
In brief:
- More than half of Australians say they are either experiencing energy poverty today or expect difficulty paying future energy bills.
- Australian consumers are supportive of sustainability and energy solutions, but many question whether the benefits of the transition are being shared fairly.
- Providers that reduce complexity, demonstrate value and build confidence will be better positioned to engage consumers in the next phase of the energy transition.
Australia’s energy transition is accelerating, but consumer confidence is not keeping pace. While households are investing in solar, electrification and energy technologies at record levels, many do not yet believe the benefits of the transition are flowing through to them. This confidence gap is emerging as a critical constraint on the next phase of the energy transition.
No easy savings left
81 %
81 %
of Australians say they are already doing everything they can to reduce energy costs.
The 2026 EY Global Energy Consumer Research finds 22% of Australian consumers are experiencing energy poverty today, spending more than 10% of their income on energy bills. Another 35% expect difficulty paying future energy bills.
Four in five consumers say they are doing everything they can to manage and reduce energy costs, yet only 40% believe their provider is helping them do so.
This suggests the energy transition is accelerating faster than consumer confidence. And confidence is shaped by perceptions as much as experience.
The Australian Energy Regulator’s State of the Energy Market report reveals that 3.1% of residential customers were in energy debt in 2025, a relatively modest increase from the previous year.1 Yet EY’s research finds 57% of Australian energy consumers say they are either experiencing hardship today or can see it on the horizon.
In the Australian context, energy costs are elevated and future costs are uncertain as they system itself is shaped by a complex mix of factors, including tariff structures, rising network and generation costs, and the increasing role of distributed energy resources.
While changes to Australia’s energy system are designed to improve long-term outcomes, they can also leave consumers feeling less certain about how the transition will affect their household. And while many of the underlying cost drivers sit outside the direct control of retailers, consumers ultimately hold providers accountable for outcomes.
How can energy providers, therefore, build consumer confidence in a changing energy system?
1
Chapter 1
Consumers are doing their part. Now what?
Australians are embracing energy solutions, but many remain unconvinced the benefits are flowing back to households.
Renewables supplied a record 46.5% of electricity generation in the first quarter of 2026, according to the Australian Energy Market Operator.2 More than 4.3 million households now have rooftop solar, Clean Energy Council data reveals, and almost 300,000 home batteries were installed in 2025 alone.3
Of the 800 Australians EY surveyed, 61% said their interest in taking action to be more sustainable had remained the same or increased over the past year.
And their interest in purchasing almost every energy product category as increased markedly, especially for technologies that help households electrify, monitor and optimise their energy use.
How Australians plan to invest in energy products over the next three years
|
Rank |
Product |
2026 |
2023 |
Change |
|---|---|---|---|---|
|
1 |
Energy efficient home appliances |
47% |
31% |
+16 |
|
2= |
Renewable electricity and/or natural gas |
42% |
32% |
+10 |
|
2= |
Battery storage |
42% |
35% |
+7 |
|
4 |
Energy monitoring system |
40% |
26% |
+14 |
|
5 |
Smart thermostat |
38% |
18% |
+20 |
|
6= |
New insulation, windows/doors |
37% |
23% |
+14 |
|
6= |
Smart power panel |
37% |
22% |
+15 |
|
8= |
Solar water heater |
36% |
25% |
+11 |
|
8= |
EV |
36% |
26% |
+10 |
|
10= |
Heat pump |
34% |
17% |
+17 |
|
10= |
Community solar and batteries |
34% |
n/a |
n/a |
|
12 |
Home solar |
33% |
26% |
+7 |
|
13 |
Back-up power generator |
31% |
n/a |
n/a |
|
14 |
Charging equipment for an EV |
30% |
19% |
+11 |
Consumer interest in adopting a range of energy-related products is rising rapidly.
However, interest in renewable energy products does not necessarily translate into confidence in the energy transition.
When asked why their energy bills are increasing, 42% of Australians surveyed cited government renewable energy policies and 34% pointed to the increasing use of renewable energy. Both figures sit above the global average of 34% and 23%, respectively.
This does not mean Australians are turning against renewables. But it does suggest energy providers have a larger role to play in ensuring the benefits of renewable energy flow through to households.
The implication is clear: consumer support for the energy transition cannot be taken for granted. Without greater transparency, clearer value and stronger engagement, confidence will continue to lag, even as investment and adoption increase.
Capturing hearts and minds
26 %
26 %
of energy users in Australia feel their provider creates value for consumers and their communities.
2
Chapter 2
The next phase of the transition depends on participation
Australia’s future energy system will rely on households becoming active participants, not passive consumers.
The first stage of Australia’s renewable energy transition was largely about building renewable generation and encouraging adoption of consumer energy technologies. This next phase will depend less on adoption and more on participation – how actively consumers engage with and optimise the energy assets they already have. EY’s 2024 Net Zero Centre report, From chaos to choreography, argued that Australia’s future energy system would depend on orchestrating consumer energy resources such as solar panels, batteries, EVs and smart appliances.
Two years later, 80% of Australians would consider participating in at least one energy management program. However, they consistently favor options that preserve control and deliver immediate financial benefits. Interest declines as programs become more complex or require greater provider control over household assets.
This highlights a critical tension: while consumers are open to participating in energy programs, they are reluctant to trade off control, certainty or privacy. Participation will not scale unless providers can demonstrate clear, immediate and tangible value on consumer terms.
So, what do Australians expect energy providers to do differently?
The solutions are surprisingly practical. They want rewards for reducing or shifting energy use (39%), recommendations on energy plans that could reduce bills (37%) and bills that are easier to understand (36%).
Consumers are also looking for information: 32% want providers to explain available incentives, rebates and programs and 29% want clearer information about why energy costs are rising.
As the energy system becomes more complex, the providers that build confidence will be those that make energy easier to understand, not harder to navigate.
3
Chapter 3
Making energy easier in an age of AI
Consumers want confidence that they are making the right decisions.
Consumers are looking for simpler bills, clearer information and practical recommendations that help them reduce costs. They want providers to remove complexity rather than add to it.
More than half (57%) of Australian energy consumers surveyed are already using AI for energy-related tasks, and 36% expect to increase their use of AI in the future.
AI has the potential to act as a trusted intermediary, helping consumers compare plans, identify savings opportunities, automate routine decisions and manage household energy assets in line with their preferences.
However, adoption does not necessarily equate to trust. The findings suggest consumers are open to digital and AI-enabled services, but expect providers to earn their confidence through experiences that are simple, transparent and reliable. While 81% of Australian consumers have interacted digitally with their provider, still only 68% prefer digital-first experiences, well below the 84% recorded in the United States.
What Australian consumers expect from digital-first experiences
60 %
60 %
Easy to use
52 %
52 %
Accurate and reliable
41 %
41 %
Security and privacy of my information
The 2026 EY AI Sentiment Index finds Australians are more hesitant to use AI than global counterparts, with just 39% believing the benefits outweigh the negatives. AI may help reduce or at the very least explain complexity, but it will only strengthen energy wellbeing if consumers believe it is delivering value on their behalf.
4
Chapter 4
Three ways providers can strengthen energy confidence
Consumers want lower bills, but they also want greater certainty, simplicity and control.
Australia’s energy transition will require confident consumers who want to play an active role in how energy is generated, managed and consumed. Confidence will not come from a single initiative or technology. Providers will help build that confidence through a combination of operational agility, digital enablement and consumer empowerment. Three priorities stand out.
1. Responsive customer operations
Nothing erodes confidence faster than an unexpected bill or a poor customer experience. Consumers increasingly expect providers to proactively identify affordability risks, anticipate future costs and intervene before problems escalate. This requires agile operating models capable of using customer data, predictive analytics and real-time insights to identify emerging needs and deliver timely support.
Actions for leaders:
Start it
- Centralise accountability for end-to-end journeys. Empower ownership to improve customer and employee experiences as interactions and offerings become more complex.
Shape it
- Take a horizontal view of experiences across the organisation, breaking down operational silos that create unnecessary friction.
Scale it
- Create a shared vision with employees around the future of talent development. Build career paths that support long-term skill evolution and rapid learning cycles with structured and self-directed opportunities.
2. Digital investment
For the first time in the six years of our study, most consumers globally prefer digital-first across all interactions with their energy provider, even during outages and emergencies.
But even as the structural shift to digital gathers pace, most consumers are frustrated by providers’ digital offerings. They want simple, intuitive channels, tailored insights and proactive support with the option to speak to a human.
The biggest opportunity lies in transforming the primary customer-provider interaction: billing and payments. Customers tell us they would like near real-time usage and costs, control over devices and automated energy management.
Actions for leaders:
Start it
- Revisit your digital and AI roadmap to focus on consumer and employee needs, including capabilities that empower consumers to manage their energy costs.
Shape it
- Create a simplified, curated set of channels that deliver consistent omnichannel experiences designed for an AI-powered future.
Scale it
- Build seamless pathways that combine digital self-serve and direct personal support.
3. Energy empowerment
According to the International Energy Agency, flexibility can improve system efficiency by up to 30% while helping to reduce emissions. Even relatively simple measures, such as dynamic pricing, can help consumers lower their costs by 5% to 15%.4
Australian consumers appear open to participating in this future: 80% said they would sign up to at least one type of energy management program, but want to stay in control. Only 18% say they’d hand over control of their smart devices to their energy provider in return for rewards, citing concerns about savings and data privacy, and 31% percent would not enroll any home devices in automated energy management programs, even if they saved them money.
The bottom line? Australian consumers are willing to engage with energy companies, but on their terms. They want support, choice, incentives and savings, without sacrificing reliability, privacy or control.
Actions for leaders:
Start it
- Reimagine the holistic energy solution adoption journey from a consumer perspective. Take ownership by simplifying and reducing effort, even in areas that may be out of your control.
Shape it
- Develop curated value propositions around flexibility tailored to appeal to unique groups of customers. Focus on what excites them and address key barriers.
Scale it
- Create set-and-forget energy management experiences. Deliver peace of mind by design that builds in control, privacy and security.
Summary
Australian consumers are investing in the renewable energy transition. Eight in 10 say they are already doing everything they can to reduce energy costs, whether that means changing habits, upgrading appliances or adopting new technologies. But many are still waiting to see how the transition will invest in them.