Cost Over Climate: Australians To Spend AU$80B On Energy Upgrades

Australians are investing billions in energy-efficient and sustainable home upgrades, mainly to cut down on electricity bills rather than for environmental reasons.

On average, households plan to spend AU$7,500 on energy-efficient upgrades over the next five years, which could add up to more than AU$80 billion nationwide. About 50% of Australians want to make their homes eco-friendlier, driven mostly by a desire to reduce energy costs, as per the REA Group and Origin report.

When asked why they would switch to energy-saving appliances, 68% of homeowners pointed to high living costs and energy prices, while 55% mentioned environmental concerns, News AU reported. However, these savings come with a high upfront cost.

"Making the switch to all-electric appliances in the home could help save costs, reduce energy use and lower carbon emissions," REA Group senior economist Eleanor Creagh said. "Yet, upfront costs and knowledge gaps are significant barriers preventing many from adopting energy-efficient features."

Creagh pointed out that people who understand energy-efficient appliances were more likely to switch to electricity and make home improvements. She emphasized that better public education was key to boosting energy efficiency across the country.

"It's clear that people with a good understanding of energy efficiency are more likely to make upgrades to their homes and alter their behaviour to reduce energy use. This indicates that wider education is crucial to improving energy efficiency across Australia," she said.

Majority says homeowners should lead on energy upgrades

Nearly two-thirds of people believe homeowners should take the responsibility of making older homes more energy-efficient, while about half think the federal or state governments should also play a role.

This comes after new data from the Australian Bureau of Statistics showed a 16.3% jump in electricity prices, mainly due to rising costs in Brisbane. Many households there have already used up the AU$1,000 electricity rebate from the Queensland government, leading to higher bills.

The report also revealed that only 34% of respondents understand the benefits of "electrification," with awareness lowest among those under the age of 35.

Origin retail executive general manager Jon Briskin said that while saving money motivated many Australians, most aren't sure how to begin. He suggested starting with small habit changes and affordable upgrades to more efficient appliances.