Homeowners could save up to $1300 a year on their power bill but knowledge gaps and upfront costs are major barriers to electrification and sustainable upgrades within Aussie homes.
According to the second PropTrack Origin Australian Home Energy Report, based on insights from over 4800 participants in the realestate.com.au Residential Audience Pulse Survey, more than half of Australians (56 per cent) plan to improve their home’s energy efficiency within the next five years as they see it as a way of saving on their electricity bills.
When homeowners were asked the reasons why they would switch to more energy-efficient appliances, 68 per cent said it was due to cost of living and the price of energy, outweighing the 55 per cent who cited environmental concerns.
On average, households intend to spend $7950 on energy-efficient upgrades over five years, indicating a potential $80 billion in national investment.
While the initial upfront cost can appear daunting, savings estimate by the Climate Council show Victorians could save $1301 a year by shifting gas appliances to all electric and removing gas supply charge fees.
Source: PropTrack Origin Australian Home Energy Report
Tasmanians could also save around $1311 annually, while savings dip slightly in Queensland and the ACT, down to $1233 and $1236 respectively.
In SA, homeowners would stand to save $948 on their power bill, followed by $898 in NSW and $336 in WA.
It means that for most Australians, the savings could cover close – if not all annual power expenses.
The release of the report comes as hundreds of thousands of Australians are likely to be slugged with higher energy prices after July 1, this year, as authorities warn they will up the maximum level energy companies can charge.
In a draft decision landing on the cusp of a federal election, the Australian Energy Regulator in March recommended an increase to the so-called default market offer (DMO) in multiple states.
Source: PropTrack Origin Australian Home Energy Report
It will see benchmark price climb by up to 8.9 per cent for some households in New South Wales, 5.8 per cent in southeast Queensland, and 5.1 per cent in South Australia.
REA Group Senior Economist, Eleanor Creagh said rising costs of living had now placed affordability at the forefront of household concerns, with homeowners and renters seeking solutions to reduce energy bills.
“Making the switch to all-electric appliances in the home could help save costs, reduce energy use, and lower carbon emissions,” she said.
“Yet, upfront costs and knowledge gaps are significant barriers preventing many from adopting energy efficient features. By addressing these barriers effectively, we can accelerate the transition toward more energy efficient homes to benefit both the environment and household
budgets.
“It’s clear that people with a good understanding of energy efficiency are more likely to make
upgrades to their home and alter their behaviour to reduce energy use. This indicates that wider education is crucial to improving energy efficiency across Australia.”
PropTrack senior economist Eleanor Creagh says cost of living pressure forced more homeowners to look at ways to reduce household bills.
While saving on their energy costs is the biggest motivator for Australians to make home energy upgrades, Origin Retail Executive General Manager, Jon Briskin, said the report’s finding showed many don’t know where to start.
“We’re committed to supporting our customers to take control of their energy with a range of
useful tools and information. This includes our app, energy rewards program and podcast to
help Australians improve their energy efficiency, bring energy bills down and move toward
electrification,” he said.
“Small changes to energy habits and upgrading to more efficient appliances within their budget is a good starting point for many households.”
A guide to electrifying the home
Electrifying your home is switching appliances powered by gas – think cooking, hot water and heating over to efficient electric alternatives.
It’s a smart move for future-proofing your home, reducing energy bills and your carbon footprint in the process.
If you’re building or renovating, it’s an ideal time to install all-electric appliances like induction cooktops, electric hot water, heat pumps, and reverse-cycle heating and cooling. While upfront costs may be higher, efficient electric options often have lower running costs over time.
If you have rooftop solar, you can use the energy you generate during the day to power your home, which can lower your energy bills.
Plus, if you add a battery, you can store all your unused solar energy (rather than send it back to the grid) and use it when the sun isn’t shining or during blackouts.
The savings can really add up and help you be more energy independent.
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