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As Australians grapple with rising energy costs home owners are looking for ways to increase energy efficiency in their homes, a new report reveals.
Electricity prices in Australia have soared by approximately 25 per cent on 1 July 2023 alone, following recent energy sector cost hikes. As such, home owners are taking proactive measures to mitigate the impact on their wallets and the environment, according to the 2022–25 Housing Outlook, commissioned by QBE Lenders’ Mortgage Insurance.
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While the federal government has announced reforms on the renewable energy infrastructure, it will be some time yet before households’ energy bills come down, with the Australian Energy Regulator (AER) already warning energy prices have nearly tripled since 2021.
As a result, QBE’s housing outlook report has shed light on the growing trend of investing in environmentally friendly home improvements.
The report signalled home owners are increasingly opting for solar panels, double-glazed windows, lighter-coloured roofs, and advanced heating and cooling solutions.
These energy-efficient measures not only reduce emissions but also help future-proof one of the most significant assets of home owners, general manager Pat Priest said.
“An energy-efficient home uses 66 per cent less electricity, 51 per cent less water and produces 62 per cent fewer greenhouse gas emissions,” Ms Priest said.
“Just by installing a 5kW rooftop solar system, the average Australian household could save $909 per year on their electricity bills.
“Australia has the highest uptake of rooftop solar energy globally, and this is only expected to rise, so understanding the environmental and financial benefits of future-proofing their homes will enable consumers to make better choices.”
The report noted that banks are increasingly offering green mortgages to further encourage sustainable housing, while energy retailers are offering renewable and carbon offset products for environmentally conscious consumers.
The expansion of green home loan offerings gives households the opportunity to access discounted interest rates if they build, buy, or renovate a home to meet certain energy ratings.
The recent implementation of the National Construction Code (NCC) 2022, which mandates all new-build homes to achieve a 7-star NatHERS rating, also makes these properties eligible for green home loans.
“Making it more affordable to own a green home is a key enabler for consumers to switch over to energy-efficient choices,” said Ms Priest.
QBE, in partnership with participating banks NAB and Bank Australia, has taken additional steps to promote eco-friendly home ownership by offering a 5 per cent rate reduction for lenders’ mortgage insurance (LMI) on green mortgages.
For further insights on green loans, refer to The Adviser’s August edition.
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