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How to improve energy efficiency in your home

woman changing the temperature on her heating system
RACV

January 23, 2025

Energy bills are top of mind for Australian households. Here’s how to make simple lifestyle changes and home investments to improve your energy efficiency, whether you're a homeowner, landlord or renter.

Factors like the weather, the number of people living in your home, and your living habits all affect your energy bills. Some things are outside your control, but there are small changes you can make to improve energy efficiency in your home. Along with identifying hidden energy drains, such as electronics on standby mode, you may also consider looking for a new energy provider.

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"The great news is that you can make a big difference to your energy usage and efficiency in the home without spending a cent," explains Nicole Brasz, RACV Executive General Manager–Home and Energy.

"Heating and cooling accounts for 40 per cent of energy consumption in the home. In addition to doing simple things like closing the curtains and sealing up draughts, for example, you can also think about reducing the temperature of your heating and cooling by one degree, which can make a difference."

In summer it can be tempting to run air conditioning systems too cold, while the reverse applies in winter, when households crank the heater an extra degree. Thankfully, there are ways to stay warm without dialling up the thermostat. Furthermore, properly insulated homes can halve their power bills compared to homes without insulation.

The Australian Department of Climate Change, Energy, the Environment and Water (DCCEEW) states that replacing inefficient halogen lightbulbs with LED lighting can use up to 75 per cent less energy. LEDs also last five to 10 times longer than halogen bulbs.

It's also beneficial to make informed decisions around energy-efficient home appliances by taking into account energy ratings. For example, switching from traditional gas cooktops to induction cooktops can help you reduce your energy bills according to Solar Victoria.

DCCEEW also reports that one in three Australian homes now have rooftop solar to run everything from heating and cooling to electric vehicles.

"While some of these investments in energy efficiency do require an upfront cost, there are options available to reduce help reduce those costs," Brasz says. "In Victoria for example, you can get rebates to help you with solar and your battery, and upgrade your hot water system. You can also access green loans to help finance these initiatives."

Woman adjusting temperature of air conditioning system

Save money by setting your air conditioner or heater at a temperature that reduces energy usage. Image: Getty

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Energy efficiency for rental properties in Victoria

Fixed energy-efficient heater

By law, all rental homes in Victoria must have a fixed heater in the main living area. For rental agreements starting from March 2023, this heater should be energy efficient. If an existing heater isn’t energy efficient, the rental provider must upgrade it. Under the standards, an energy-efficient fixed heater is either:

  • a non-ducted air conditioner or heat pump with a 2-star or above energy rating
  • a gas space heater with a 2-star or above energy rating
  • a ducted heating or hydronic heating system with an outlet in the main living area
  • a domestic solid fuel-burning appliance, such as a fireplace or wood-burning stove.

Victorian Energy Upgrades program

The Victorian Government is supporting rental providers to invest in further energy efficiency and electrification. Discounts are available for energy efficiency upgrades through the Victorian Energy Upgrades (VEU) program, including replacing a gas heater with a reverse cycle air conditioner or switching a gas hot water heater with a heat pump hot water system.

Solar panels for rental properties

The Solar Homes Program offers eligible landlords a rebate of up to $1,400 for the installation of solar panels (PV). Eligible rental providers can apply for an interest-free loan of up to $1,400 to further reduce the upfront cost of the solar panel system.

Victorian Gas Substitution Roadmap

In addition, the Victorian Gas Substitution Roadmap has committed to review minimum energy efficiency standards for rental homes, with a view to providing renters with more comfortable homes that are cheaper to run. The review includes ceiling insulation, draughtsealing, hot water, heating and cooling. Public consultation is currently underway.


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