Energy provider AGL says residential electricity consumption continues to fall as households install rooftop solar systems.
The company has 3.7 million customers, and said electricity consumption fell two per cent in the 2014/15 financial year.
That compares to a four per cent fall two years ago and six per cent drop three years ago.
"We're seeing a decline in the rate of decline," managing director Andy Vesey said as the company delivered financial results.
AGL outlined plans in May to become one of the leading providers of rooftop solar, energy storage and electric vehicle services by 2020.
Mr Vesey said many of the forces driving a decline in residential electricity demand were weakening, including a reaction to higher electricity prices and the market penetration of rooftop solar.
Recent cold weather on the east coast of Australia had also led to greater electricity demand during winter.
In the past year AGL lost 65,000 customers, the majority in the first six months, chief financial officer Brett Redman said.
"We're seeing a reduction in that decline but I'm still strongly of the view that customer value is a combination of customer numbers and the margin per customer," Mr Redman said.
"We got that balance better in the second half of the year."
The company's net profit dropped 62 per cent to $218 million in 2014/15, due to $435 million in writedowns on the value of its production assets and $117 million in costs from its acquisition of NSW power generator Macquarie Generation.
Excluding those one-offs, underlying profit was up 12 per cent at $630 million.
Mr Vesey said the acquisition of Macquarie Generation had helped lift the group's operating cash flow and offset the impact of the winding back of the carbon tax.
AGL plans to close its existing greenhouse gas emitting coal-fired power stations by 2050, and Mr Vesey said it would also build around $2 billion in renewable energy projects.
He added that the company's Gloucester coal seam gas project in northern NSW would only go ahead if it was in the best interests of shareholders.
AGL shares dropped 19 cents to $16.41.
WRITEDOWNS AND COSTS DENT AGL'S PROFIT
* Net profit down 62pct to $218m
* Revenue up 2pct to $10.68b
* Final fully franked dividend up one cent to 34 cents
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