A growing number of Australians are eager to make their homes more energy efficient, but many face significant hurdles—including upfront costs and limited knowledge—according to the second PropTrack Origin Australian Home Energy Report released by REA Group and Origin.
More than half (56%) of the 4,800 respondents to the realestate.com.au Residential Audience Pulse Survey said they plan to improve their home’s energy efficiency over the next five years.
The primary drivers are financial and environmental, with 68% motivated by cost savings and 55% by sustainability concerns.
On average, Australians expect to spend $7,950 on energy efficiency improvements—equating to a potential national investment of over $80 billion.
Despite the strong intent to upgrade, 40% of respondents admitted they don't know how to make their homes more energy efficient. Only 34% have a good understanding of “electrification,” with awareness even lower among those under 35.
“Yet, upfront costs and knowledge gaps are significant barriers preventing many from adopting energy efficient features,” said Eleanor Creagh (pictured left), REA Group senior economist.
“By addressing these barriers effectively, we can accelerate the transition toward more energy efficient homes to benefit both the environment and household budgets.”
The PropTrack Origin report found a direct link between knowledge and action.
Respondents who understood energy efficiency were more likely to transition their homes to electric appliances.
“It’s clear that people with a good understanding of energy efficiency are more likely to make upgrades to their home and alter their behaviour to reduce energy use,” Creagh said. “This indicates that wider education is crucial to improving energy efficiency across Australia.”
Upfront expenses are another significant roadblock. Almost half (45%) of respondents cited cost as the main reason for delaying or avoiding home energy upgrades.
“Saving on their energy costs is the biggest motivator for Australians to make home energy upgrades, however the findings in this report show many don’t know where to start,” said Jon Briskin (pictured right), Origin retail executive general manager.
Briskin emphasised the importance of practical tools to help consumers take control of their energy use.
“We’re committed to supporting our customers to take control of their energy with a range of useful tools and information,” he said. “This includes our app, energy rewards program and podcast to help Australians improve their energy efficiency, bring energy bills down and move toward electrification.
“Small changes to energy habits and upgrading to more efficient appliances within their budget is a good starting point for many households.”
Responsibility for home energy upgrades is seen as shared.
Nearly two-thirds (63%) believe property owners should take the lead, while 49% point to state governments and 48% to the federal government.
When it comes to switching to an all-electric home, only 40% would consider it, while 28% would not and 32% remain unsure—highlighting ongoing uncertainty around costs and benefits.
The report also found that 70% of Australians have already changed their energy habits in response to cost-of-living pressures. The most common actions include turning off lights (52%) and unplugging appliances (42%).
Several Australian banks now offer green home loans with discounted rates or flexible financing to help homeowners invest in energy-efficient upgrades like solar panels, batteries, insulation, and heat pumps.
Bank Australia’s Clean Energy Home Loan offers a reduced variable rate for homes that meet all-electric and upgrade criteria, along with an “Eco Pause” option to temporarily lower repayments while improvements are made.
These targeted lending initiatives aim to ease the financial burden of retrofitting homes for energy efficiency, encouraging Australians to adopt cleaner technologies and reduce long-term energy costs.
For more insights and to access the full report, visit realestate.com.au/insights.
