The Forgotten Fuel: Putting energy efficiency to work at home

For most of us, our home is the most important purchase we’ll ever make. But it’s so much more than just a financial investment – our home is central to our wellbeing. 

With around 10 million households in Australia, it’s no surprise that more than 10 per cent of our total emissions come from energy used within our homes. It’s clear that improving energy-efficiency in our homes has the potential to make a considerable impact to the environment, as well as to our wallets.

The third and final instalment of The Forgotten Fuel series, created in partnership with the Energy Efficiency Council, looks at practical steps Australians can take to improve the energy efficiency of their homes, and the climate and financial benefits of making our households more sustainable. 

It’s time to improve the efficiency and resilience of our homes 

Most of us live in homes that were built before the introduction of minimum energy efficiency standards, which means millions of Australians are paying more for energy than we need to. With cost-of-living pressures continuing to impact many Australians, even small measures to improve efficiency can make a big difference. 

Any effort to use energy more efficiently not only saves money but it can also reduce emissions at the same time. For example, incentive programs like replacing light globes with modern LEDs have been shown to help reduce energy usage by up to 80 per cent. 

From everyday choices such as using appliances during off-peak times, to larger switches such as investing in heat pumps, the report aims to make it simpler for Australians to make good energy choices that will make a big difference. 

While it’s difficult to predict exactly how much a household can save through energy upgrades, modelling by the Australian Council of Social Service and the Brotherhood of St Laurence found these investments could pay for themselves within a few years. They estimate that a one-off capital investment of around $5,000 for a house can result in an average saving of more than $1,000 each year.  

Creating a comfortable home while cutting down energy costs  

Improving energy efficiency in the home makes households healthier and more comfortable, reduces energy bills and reduces greenhouse gas emissions – a win, win, win. 

Living in a house that’s too hot or too cold can be more than just uncomfortable, it has the potential to be quite harmful to our health. Installing insulation, draught proofing and shading can significantly improve a home’s ability to hold its temperature and maintain comfort levels for longer. 

It’s not surprising in Australia’s varied climate that heating and cooling accounts for 20-50 per cent of energy used in our homes. While older homes need a little more work to get the climate right, there are some simple measures we can put in place to maximise energy savings. 

For example, reverse cycle air conditioning (also known as heat pumps) are 300-500 per cent efficient, which means it can take one unit of electrical energy and turn it into between three to five times as much heating or cooling energy. 

Daily changes that make a big difference

Managing our energy use at home doesn’t need to be complicated. Changing daily habits such as shifting your energy use away from evening peak hours and adjusting your thermostat to be slightly higher in summer and lower in winter can go a long way. Here’s a few of my favourite behavioural tips from the report:

1. When it comes to heating and cooling, use a consistent temperature setting of 25-27 degrees Celsius in summer and 18-22 in winter. If you’re using air conditioning, try precooling your home before it gets too hot. 

2. Use fan mode on your air conditioner (rather than cool mode), or, even better, use a ceiling fan instead! 

3. Use your air conditioner for heating in winter instead of high energy consumption heaters.

4. Try using smart devices, plugs or timers to move your electricity use away from peak evening hours. Many of these can be pre-set or controlled remotely, so it doesn’t matter whether you’re home or not.  

5. Install a smart meter to understand what appliances are using the most energy in your home, and then either move this usage into off-peak times, or invest in a more energy-efficient option. 

Read the full report here 

Maile Carnegie is Group Executive Australia Retail at ANZ