A new report has just said our homes could cut power bills by over 90% by using more energy efficiency measures. That’s a massive cut, but is it really possible?
The study by the Institute for Energy Economics and Financial Analysis—or IEEFA—eyed savings of between 82% and 94% if roof solar and home batteries were installed, as well as energy efficient appliances like heat pumps, air-conditioners and electric induction cooktops.
It’s a pretty stark finding, but our homes have been in the firing line for some time. Given they use about a quarter of the country’s electricity and generate over 10% of greenhouse gas emissions, that just makes sense of course.
Government’s have been responding in a number of ways. The Australian Government just announced a new $2.3B home battery program providing 30% discounts on batteries when paired with roof solar.
State governments have also been pushing home electrification, like the Victorian Government’s most recent home energy efficiency rules imposing a ban on gas heating and hot water systems in new homes from January 2027.
But given the noisey debate about energy, I’m sure many consumers just feel confused. Getting them to commit to home energy efficiency will take a lot of work, especially given that upfront costs can look expensive before savings kick in.
At last count Australia had something like 4M homes with roof solar—just under a third of all homes—a major success globally clearly, but only 250,000 of those also had batteries. Incentives like the latest battery one do resonate, with retailers reporting a fourfold rise in sales and inquiries since the scheme kicked off.
No one product, incentive or regulation will ever get all our homes energy efficient quickly, it will need a broad approach over a long period, including something as basic as wiring homes to handle energy efficiency in what ever form it comes.
We started the Smart Wiring Home Essentials to do just that, not only enabling home batteries, roof top solar and EV charging, but even newer products like convection stoves and heat pumps. It may mean planning ahead and investing upfront, but it will make our homes energy efficiency ready, no matter what the program or product.
Cheers, John Fennell
