An estimated 70% of Australian homes were built before minimum energy efficiency standards were introduced and currently rate below three stars out of 10.
A combination of federal and state initiatives in Australia is addressing the energy performance of residential buildings, as households report long-term savings from electrification and efficiency upgrades.
Federal Rating Scheme Expansion
The federal government is investing $32.7 million to extend the Nationwide House Energy Rating Scheme (NatHERS) to include older homes.
The expanded program will involve training and accrediting additional energy assessors and developing advanced rating software tools. Participating households will receive home energy rating certificates, including tailored recommendations for upgrades to improve energy performance.
Assistant Minister for Climate Change and Energy, Josh Wilson, stated that improving a home's energy rating from three to five stars could reduce energy consumption for heating and cooling by approximately 40%.
Household Electrification Timelines
Homeowners and energy experts report that the process of electrifying a home can take several years. David and Ruth Hudspeth of Melbourne carried out a series of upgrades over time, including ceiling insulation, replacing a gas heater with an electric alternative, installing a heat pump for hot water, adding solar panels, an electric car, and a home battery. They report savings on energy costs.
Energy Efficiency Council representative Jeremy Sung recommended starting with measures such as draught-proofing, insulation, curtains, exterior shading, and double glazing, followed by upgrading heating and water heating appliances.
Lloyd Heathfield of the Yarra Energy Foundation described the process as "a marathon." He reported that most families he works with save about $1,400 per year, while those with solar, a fully electric home, and an electric vehicle can save up to $4,000.
He noted that over 40% of Australian homes have solar panels. Common swaps include heat pump hot water systems and induction cooktops.
Energy Consumption and Emissions Data
According to available data, residential buildings account for approximately 10% of Australia's emissions and 25% of electricity use. About half of homes still use fossil gas for heating, cooking, or hot water. Many homes built before energy performance standards in the early 2000s are drafty and expensive to heat and cool.
State and Federal Programs
Victoria's state government launched the Easy Electric SEC program to help households identify upgrades and access incentives. The program claims switching from gas to efficient electric alternatives can save households up to $1,900 per year on energy bills, or up to $2,230 with rooftop solar.
A study cited by Sung found that simple upgrades reduced exposure to indoor temperatures below 18°C, saving an estimated $10 in avoided healthcare costs for every $1 saved on energy.
Individual Assessment Examples
Homeowners such as Scott Bradley, whose 1960s Perth home received a 2.6-star rating, have utilized the assessments to identify practical upgrades. Home energy assessments cost approximately $300.
Potential Policy Developments
Sung called for mandatory home energy performance disclosure and minimum standards for rental properties. He noted that Australia currently lacks mandatory disclosure, unlike Europe and the UK.
There is potential for energy star ratings to become mandatory at the point of sale or lease, a practice recently trialled in New South Wales. Research suggests consumers may be willing to pay more for homes with higher energy efficiency ratings. The decision to make energy efficiency ratings mandatory for disclosure will rest with individual states and territories.