A new survey of over 4,800 respondents shows homeowners are planning to spend around $7,950 in the next five years on energy-efficient home upgrades, signalling a potential spend of more than $80 billion nationwide.
REA Group, together with Origin, today released the second PropTrack Origin Australian Home Energy Report, found that more than half of the respondents (56 per cent) plan to improve their home’s energy efficiency over the next five years, driven primarily by cost savings (68 per cent) and environmental concerns (55 per cent).
On average, households are planning to spend $7,950 on energy efficient improvements over the next five years, signalling a potential spend of more than $80 billion nationwide.
However, two in five (40 per cent) respondents don’t know how to improve the energy efficiency of their home, with knowledge gaps a crucial barrier.
Only 34 per cent of respondents have a good understanding of ‘electrification’, and for those under 35, this share is even lower.
Those with a greater understanding of ‘energy efficiency’ are more likely to convert their property to electricity than those with no knowledge.
Costs are also a hurdle, with almost half (45 per cent) of respondents citing upfront costs as the biggest barrier to adopting energy efficient features.
REA Group Senior Economist, Eleanor Creagh, said: “The rising cost of living has placed affordability at the forefront of household concerns, with homeowners and renters seeking solutions to reduce energy bills. Making the switch to all-electric appliances in the home could help save costs, reduce energy use, and lower carbon emissions.
“Yet, upfront costs and knowledge gaps are significant barriers preventing many from adopting energy efficient features. By addressing these barriers effectively, we can accelerate the transition toward more energy efficient homes to benefit both the environment and household budgets.
“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. This indicates that wider education is crucial to improving energy efficiency across Australia.”