What is a smart meter?
A smart meter is a digital electricity meter that records your usage in 30 minute intervals and sends the data to your retailer automatically. Unlike older accumulation meters that require someone to physically come to your property every few months to read the dial, smart meters transmit your usage data wirelessly through a dedicated communications network.
This means your bills are based on actual usage rather than estimates, and you get access to detailed data about when you use power, not just how much. Most retailers provide an app or online portal where you can see your usage broken down by time of day, which is the foundation for understanding whether a time of use tariff would save you money.
The 2030 rollout: where things stand
In November 2024, the Australian Energy Market Commission (AEMC) finalised rules requiring universal smart meter deployment across the National Electricity Market by 30 November 2030. The accelerated rollout commenced in December 2025.
Victoria is effectively already done, sitting at 99% smart meter penetration. Tasmania is close behind. The remaining states (NSW, Queensland, South Australia, ACT) are actively rolling out through geographic zones, with over 57% of meters across the NEM now remotely read as of 2026.
From December 2025, the option to refuse a smart meter installation was removed. When your retailer contacts you to arrange installation, it is compulsory. There is no upfront cost when your retailer initiates the installation. However, if your meter box has existing safety issues (damaged wiring, asbestos, or a cover that does not protect the wiring from weather), those remediation costs are the property owner's responsibility and must be resolved before the smart meter can be installed.
If you want a smart meter installed ahead of the scheduled rollout in your area, you can request one from your retailer. They have 20 business days to arrange installation, but you may be charged for a requested installation.
How time of use pricing works
Time of use (TOU) pricing charges different rates for electricity depending on when you use it. The day is divided into periods that reflect demand on the electricity grid.
Peak is the most expensive period. This is when the grid is under the most pressure, typically late afternoon and evening when households come home, cook dinner, run heating or cooling, and use multiple appliances at once. Peak rates in 2026 are typically between 45 and 70 cents per kWh depending on your state and retailer.
Off peak is the cheapest period. This is when demand is lowest, usually overnight. Off peak rates are typically between 15 and 30 cents per kWh, which is less than half the peak rate for the exact same electricity.
Shoulder sits between peak and off peak, both in time and in price. Shoulder periods are available in most states and usually cover the morning, the middle of the day, and the later evening on weekdays, plus most of the weekend.
Some states and retailers are also introducing a solar soak period during the middle of the day (roughly 10am to 3pm) where rates are very low or even free, reflecting the surplus of rooftop solar generation pushing prices down on the wholesale market. Victoria introduced a new "Smart Rate" structure from July 2026 with lower midday rates between 11am and 4pm, a shorter evening peak from 4pm to 9pm, and standard off peak times.
TOU windows by state
The exact peak, shoulder and off peak hours vary by state, distribution network and season. The times below are indicative for the major networks. Always check your energy price fact sheet for the specific windows on your plan.
New South Wales (Ausgrid, Endeavour, Essential)
Summer (November to March): peak is 2pm to 8pm on weekdays. Shoulder is 7am to 2pm and 8pm to 10pm on weekdays, plus 7am to 10pm on weekends. Off peak is 10pm to 7am daily.
Winter (June to August): peak is 5pm to 9pm on weekdays. Shoulder is 7am to 5pm and 9pm to 10pm on weekdays, plus weekends 7am to 10pm. Off peak is 10pm to 7am daily.
Transition months (April, May, September, October): no peak period. Shoulder is 7am to 10pm daily. Off peak is 10pm to 7am.
Victoria (CitiPower, Powercor, Jemena, United, AusNet)
From July 2026, Victoria moved to a new Smart Rate structure: low midday rate from 11am to 4pm, peak from 4pm to 9pm on weekdays, and off peak at all other times. Flat rate tariffs remain available for households that prefer a single rate regardless of time of day. Victorian residential demand tariffs were discontinued from July 2026.
South East Queensland (Energex)
Some retailers in SEQ offer demand tariffs rather than traditional time of use. Demand tariffs measure the highest amount of electricity you use during a 30 minute window, usually between 4pm and 9pm on weekdays, and charge based on that peak demand rather than the total amount used during peak hours. This can work in your favour if you spread your usage out rather than running multiple high draw appliances simultaneously.
South Australia (SA Power Networks)
Peak is typically 7am to 9am and 5pm to 8pm on weekdays (a split peak reflecting morning and evening demand). Off peak is 9pm to 7am daily plus weekends. Shoulder fills the gaps. South Australia has the highest electricity prices in the country, which makes TOU optimisation particularly valuable here.
ACT (Evoenergy)
The ACT has unique morning and evening peak periods that reflect the high proportion of government workers with regular 9 to 5 schedules. From March 2026, eligible ACT retailers are required to offer a flat rate tariff option to any small customer with a smart meter, ensuring households can access simple pricing during the rollout period.
Northern Territory and Western Australia
Both operate outside the National Electricity Market with limited or no retail competition and regulated pricing. The NT has a unique off peak period from 9am to 3pm daily (reflecting solar generation hours) with all other times at the standard rate. WA's SWIS market has limited TOU options for residential customers.
Will a TOU tariff save you money?
That depends entirely on when your household uses the most electricity. A TOU tariff is not automatically better or worse than a flat rate. It is a different pricing structure that rewards certain usage patterns and penalises others.
TOU is likely to save you money if you can run your dishwasher, washing machine, dryer, pool pump and EV charger during off peak hours (typically after 10pm). If you have solar panels, especially with a battery, TOU lets you use your own generation during the day and cheap grid power overnight, while avoiding the expensive peak window in the evening. If you work outside the home during the day and can set timers on major appliances to run overnight, TOU can deliver meaningful savings.
TOU may cost you more if your household uses the most electricity between 4pm and 9pm and cannot shift that usage. Families with young children who cook, bathe, and run heating or cooling in the early evening are often in this category. If you work from home and run air conditioning or heating through the afternoon peak, a flat rate may be the safer option.
The price difference is significant. At typical 2026 rates, the gap between peak and off peak can be 30 to 40 cents per kWh. Shifting just 20% of your consumption from peak to off peak can save between $200 and $400 per year. Running a pool pump during off peak instead of afternoon peak hours alone can save $500 to $1,200 per year on a TOU plan.
How to check which tariff you are on
Your current tariff type is shown on your electricity bill, usually near the top of the usage charges section. Look for terms like "single rate", "flat rate", "time of use", "flexible", or "demand". If you cannot tell from your bill, call your retailer and ask. You can also check your plan details at energymadeeasy.gov.au (for states in the NEM) or the Victorian Energy Compare site.
If you have a smart meter and are currently on a flat rate, you can ask your retailer for a comparison of what your last bill would have cost under their TOU plan, based on your actual interval data. This gives you a concrete answer rather than a guess.
How solar interacts with TOU pricing
If your home has rooftop solar, TOU pricing adds another layer to the calculation. Feed in tariffs in most states sit between 5 and 12 cents per kWh in 2026. Buying that same electricity back from the grid during the evening peak costs 45 to 70 cents per kWh. Every kilowatt hour you export during the day and buy back at peak rates in the evening is a financial loss.
This is where batteries change the equation. Storing your solar surplus in a home battery during the day and using it during the peak window in the evening avoids both the low feed in rate and the high peak rate. On a TOU plan, the value of a battery is not just the feed in rate you keep; it is the peak rate you avoid paying.
Even without a battery, solar households on TOU can benefit by shifting discretionary usage (washing, dishwashing, pool pumps) to the middle of the day when their panels are generating, rather than running those appliances in the evening when grid power is at its most expensive.
What to do next
If you already have a smart meter, check with your retailer whether a TOU tariff would save you money based on your actual usage data. If you do not yet have a smart meter, contact your retailer to find out when your area is scheduled for the rollout, or request an early installation.
Either way, comparing plans across retailers is worth doing. Two retailers on the same distribution network can offer significantly different TOU rates, and the gap between the best and worst deal in your area is often hundreds of dollars per year.
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