Premier Steven Miles announced the major cash injection on Thursday as rising power prices bear down on Queenslanders.
"The bills just keep going up and I've been determined to make sure the Queensland government does absolutely everything we can to ease the pressure," he told reporters.
"This is the biggest contribution a state has ever made to help households with their energy bills."
The rebate will apply to bills from July and many Queenslanders won't pay a single cent until 2025, Mr Miles touted.
It will be delivered in a lump sum as a credit to carry over to electricity bills.
Seniors and concession card holders will receive a bit more support with a $1372 rebate, while small businesses will continue scoring $325.
Steven Miles says his cost of living relief package will be the biggest in Queensland history. (Darren England/AAP PHOTOS)
A special appropriation bill will be introduced on Thursday to bring forward the rebate.
It will be the most significant helping hand provided to households in Australia, with other state and territory governments providing between $250 and $500 in energy relief.
"These are the biggest power bill savings Australia has ever seen," Deputy Premier Cameron Dick said.
The rebate is nearly double the amount provided to Queenslanders last year.
Mr Dick said a rise in royalties would cover the package's funding, rather than borrowing from the state's coffers.
"We have had a significant increase in price in the first part of the financial year. That's where the money is," he said.
Coal royalties were forecast to boost state revenue by $9.4 billion over five years post-pandemic but since being adopted in 2022, more than $5.8 billion has been contributed to the economy.
The government claims Australian Bureau of Statistics data shows the $550 rebate in 2023 lowered electricity bills by 9.5 per cent.
Canstar's editor-in-chief Christine Seib said Queensland paid the lowest bills on the east coast - about 10 per cent less than NSW - thanks to the rebate relief.
The latest rebate is expected to halve the average yearly power bill for Queenslanders over the next financial year.
The cash splash comes ahead of the June budget with the state government spruiking further cost of living support.
"There will be more cost of living relief in the budget. The premier has made it clear from the first week we took office this is our number one priority," Mr Dick said.
The federal budget in just a week's time is also expected to deliver energy relief to households after delivering a $500 rebate to residents and $650 to small businesses last year.
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