As the costs of living continue to rise, more Australian homeowners and renters are looking to energy efficient features to help slash their power bills. With winter approaching, households are seeking out solar power, efficient lighting and appliances, insulation and proper weatherproofing to reduce energy consumption and costs.
According to a new report by PropTrack and Origin Energy, most households now view energy efficiency as extremely important, especially in colder areas like Tasmania, Victoria, and South Australia. The motivation largely comes down to saving money on bills in an increasingly challenging economic environment.
With home prices and rents surging nationwide, 77% of buyers and 72% of renters see energy ratings as key to lowering future energy bills. Energy-efficient homes are no longer just for the eco-conscious - they make financial sense.
What Makes a House Sustainable?
When we talk about sustainable housing, what do we really mean? Sustainable development meets present needs without compromising future generations. Building large, urban-fringe McMansions with black roofs and no greenery is not sustainable because it will likely cause major urban heat problems down the track.
True sustainability balances environmental, economic and social factors. For housing, super energy efficient net-zero homes may tick the environmental box but cost $4 million each — clearly not financially sustainable. And a tiny net-zero home that no family can live in comfortably fails the social test. The key is striking the right balance across all three pillars of sustainability.
The Most Impactful Features
Australian households are embracing solar power more than any other feature to reduce bills, with 85% of buyers and 67% of renters interested in solar panels. Around three quarters would also pay more for a home with solar. Window glazing is also seen as valuable by almost half of Australians.
While upfront costs pose a barrier, prices for technologies like solar continue to decrease while efficiency increases. Payback periods of 10–15 years for upgrades like insulation, solar and glazing may seem long but provide ongoing savings as energy prices rise.
Something as simple as roof colour has an impact too. Lighter coloured roofs reflect heat while darker roofs absorb it, so something like choosing a lighter roof colour mandate in certain areas makes sense. Ultimately, the appropriate floor plan for the orientation and sunlight access of the lot is key to maximise passive heating and cooling.
Battling Energy Poverty
Rising energy bills are causing real struggles for households. ‘Energy poverty’ refers to difficulty paying energy bills, meaning many Australians are either rationing energy use to dangerous levels or enduring cold homes and struggling to pay bills. Government figures show electricity prices are set to increase further in 2023 after recent record wholesale prices flow through.
Around 25% of Australians currently live in energy poverty, disproportionately affecting families with kids, people with health issues and lower socioeconomic groups. Upgrading our poor-performing existing housing stock with insulation, glazing, and weather sealing can dramatically improve living conditions while reducing bills.
Buying vs Renting – Who Cares More?
The PropTrack report revealed renters place more importance on energy efficiency than buyers. With rents at record highs, renters are especially sensitive to bill shocks and lack control over making energy upgrades themselves. They focus on easy improvements like efficient lighting and appliances that can move between properties.
Home buyers focus more on solar, insulation and glazing since they own the asset long term. But buyers initially get deterred by high upfront costs of sustainable features. Communicating the long term paybacks is key to getting more uptake.
Government Policy Changes
New build home minimum energy ratings in the National Construction Code are lifting from 6 to 7 stars in May 2023. While a decade overdue, it remains a welcome move that will lock in higher performing homes.
But with most builders only meeting minimum standards, further moves are needed over time, like mandating ‘net-zero ready’ homes. While extra insulation, glazing and other passive features add cost, system prices are falling and there are health benefits in making energy efficiency more equitable across the housing spectrum.
Sustainability is not responsible for the overall shortage of housing supply and affordability issues. Planning constraints and lack of land release are greater contributors than building code changes needed to address climate impacts. Intensifying existing suburbs is part of the solution through more missing middle housing types like terraces rather than just detached homes.
The Path to Net Zero
Jumping from 7 star new builds to net-zero homes is more achievable than people think. Combining increased airtightness, solar panels and battery storage with efficient all-electric appliances like heat pump hot water and induction cook tops can get most of the way there.
While added costs exist, prices and payback periods for technologies like heat pumps and induction cook tops improve each year alongside performance. With smart design and appliance choices, net-zero homes are within reach for most Australians by the end of this decade.
Sustainable housing is a moving feast shaped by rising consumer demand, advancing technology and policy shifts. While cost sensitive, energy efficient upgrades make increasing financial sense as bills skyrocket. As climate impacts worsen, sustainable housing provides savings for household budgets and the planet.
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Juan