Recently, it has been shown that the inclusion of higher singnal harmonics in the inspiral signals of binary supermassive black holes (SMBH) leads to dramatic improvements in the parameter estimation with Laser Interferometer Space Antenna (LISA). In particular, the angular resolution becomes good enough to identify the host galaxy or galaxy cluster, in which case the redshift can be determined by electromagnetic means. The gravitational wave signal also provides the luminosity distance with high accuracy, and the relationship between this and the redshift depends sensitively on the cosmological parameters, such as the equation-of-state parameter w = PDE/ρDE of dark energy. Using binary SMBH events at z < 1 with appropriate masses and orientations, one would be able to constrain w to within a few per cent. We show that, if the measured sky location is folded into the error analysis, the uncertainty on w goes down by an additional factor of 2-3, leaving weak lensing as the only limiting factor in using LISA as a dark energy probe. © 2009 IOP Publishing Ltd.