Energy Efficiency For Australian Households

Last Updated: 10th Jan 2025 By Finn Peacock, Chartered Electrical Engineer

Energy efficiency is the low-hanging fruit for Australian households to save money on electricity bills.

If you have or are intending to install solar panels on your home, a focus on energy efficiency can maximise the value you reap from a PV system. And if you don’t intend to install solar power in the near future, you can still knock down your household energy costs – perhaps to help you save for a solar system!

How The 80/20 Rule Applies To Energy Efficiency

125 years ago, Vilfredo Pareto came up with the “80/20 principle”. It states that for many events, roughly 80% of the effects come from 20% of the causes.

This applies to household energy consumption – 80% of your electricity bill is attributable to 20% of your appliances. It’s highly likely all you need to do to get your electricity bill down is to focus on the appliances in your home responsible for the majority of your mains electricity consumption.

Rest easy that you probably only have to address half a dozen aspects to minimise your bills once and for all. It really is that simple.

Australian Homes Often Glorified Tents

While energy efficiency standards for Australian homes have become more stringent over the years, millions of houses were built before any minimum energy standards existed.

The minimum energy standard for new homes under the Nationwide House Energy Rating Scheme (NatHERS) is 7-stars these days, but homes built before 2003 have an average rating of 1.5 stars; meaning they are horribly expensive to keep warm or cool.

Electrification Is Key

Some would say that the use of gas has served us well over the decades. But actually, it hasn’t. We are paying the piper.

Emissions from burning gas (and fugitive emissions from extracting it) have made an awful mess of our atmosphere, as well as gas exploration and extraction wreaking other havoc on the environment.

Closer to home and inside your home, various studies have highlighted the health impact that burning gas for cooking and heating can have.

Australia’s energy transition involves a huge shift away from gas to renewable energy – large- and small-scale – and that’s good for you, your hip pocket, and the planet.

How Much Can Energy Efficiency Save You?

You don’t have to install a solar power system to save – although rooftop solar panels can help ensure tiny bills. Analysis by the Climate Council released in 2023 indicated that even without solar panels on your rooftop:

Electrifying a home’s cooking, heating and hot water can save a household up to $1,311 a year.
Upgrading the thermal efficiency of your home can save a household up to $1,561.

The Climate Council estimates that by combining both electrification and practical efficiency upgrades, an average Australian household would save between $1,119 and $2,872 each year. That’s worth the effort and investment to pursue.

Improving energy efficiency and home electrification may seem daunting, but as the old saying goes:

“How do you eat an elephant? One bite at a time.”

And here are 6 “bites” to help you on your way to less painful electricity bills.

6 Steps To A More Energy Efficient Home

Here’s what we are going to cover in the next 6 articles:

Where is your electricity going? Find out where the biggest savings can be made for a typical Australian house. You may be surprised!
Energy-efficient lighting: The easiest and cheapest fix – LED lights.
Thermal efficiency: Making your home thermally efficient throughout the year.
Space heating and cooling: Discover the cheapest way to keep your house warm or cool when some extra help is needed.
Getting into hot water: Should you upgrade your water heater, and what are your options?
Home Appliances: Assessing Energy Efficiency and Saving Smarter: Learn how to measure electricity use, understand energy rating labels, and minimise your appliances’ usage.

By the way, if you’re considering really slamming your household energy costs with solar power, I have heaps of information on my site. But the best place to start is with my popular solar panels guide. If you’re ready to get quotes for solar, I can help by connecting you with installers I know and trust.