Energy efficient housing in Australia: What’s the go?

When you think of energy efficiency, chances are lightbulbs, solar panels and recycled timber pop into your head. But in Australia, the conversation has moved well beyond the odd eco-upgrade. We’re now talking about entire homes designed to use less energy, cost less to run, and keep us comfy - through summer scorchers and winter chills alike.

So, what’s the go with energy-efficient housing in Australia? Is it just a buzzword, or the way forward for Aussie homeowners and renters? We go into the nitty-gritty: the need, the perks, the challenges and whether it's worth your investment.

Why energy-efficient homes matter (especially in Australia)

While many picture Australia as endlessly sunny and mild, our climate is wildly diverse. From sub-zero winters in Canberra to sweltering summers in Darwin, housing that can adapt to these conditions without chewing through electricity is not just ideal - it’s essential.

Here’s why it matters:

  • Energy bills are soaring: With energy prices on the rise (and more increases expected from July 2025), efficient homes can dramatically cut your household running costs.
  • Net zero targets: Australia’s government is aiming for net-zero emissions by 2050. Buildings account for nearly 25% of our emissions, so making homes more efficient is a huge piece of the puzzle.
  • Health and comfort: Homes that maintain a steady internal temperature without over-relying on heating and cooling are not only more comfortable - they’re also better for our health.

What makes a home energy efficient?

An energy-efficient home is more than just one that’s kitted out with solar panels or LED globes - it’s a smartly designed, well-insulated, and finely tuned system that works with the environment, not against it.

Whether you’re building new or upgrading an existing place, understanding the elements that contribute to an efficient home can help you save energy, money, and carbon emissions.

Let’s break it down:

Passive solar design

This is where clever design meets the Aussie sun. Passive solar homes are built to maximise natural light and warmth in winter while blocking harsh summer sun. Key elements include:

  • Orientation: North-facing windows in most Australian climates capture the winter sun and reduce the need for heating.
  • Thermal mass: Materials like concrete, brick, or stone absorb heat during the day and release it slowly at night, helping maintain a stable indoor temperature.
  • Shading: Eaves, pergolas, and deciduous trees can provide natural cooling by blocking high summer sun while still letting in low-angle winter rays.
  • Cross ventilation: Strategically placed windows and vents allow fresh breezes to flow through and cool the home naturally - especially important in humid areas.

Insulation

This is arguably one of the most effective ways to improve a home’s energy efficiency. Good insulation traps heat inside during winter and keeps it out during summer, meaning less reliance on heaters or air conditioners. Areas to insulate include:

  • Roof and ceilings: A major source of heat gain/loss.
  • Walls: Particularly important for maintaining stable indoor temperatures.
  • Floors: Especially in cooler climates or if you live in a raised home.

High-performance windows and glazing

Windows can be a weak point in your home’s thermal envelope. Single-glazed glass can leak heat like a sieve. The solution?

  • Double or triple glazing: These windows have two or more layers of glass with a gap in between, reducing heat transfer.
  • Low-E coatings: Special glass coatings reflect infrared heat while still letting in light.
  • Window frames: Timber or uPVC frames offer better insulation than standard aluminium.

Sealing gaps and air leaks

A draughty home is an inefficient one. Air leakage can account for 15–25% of winter heat loss in an average home. Seal gaps and cracks around:

  • Windows and doors
  • Skirting boards
  • Exhaust fans
  • Power points and light fittings

Weather stripping, draught excluders, and proper caulking can go a long way.

Energy-efficient appliances

Even the best-designed home can haemorrhage energy if it’s packed with old or inefficient appliances. When replacing white goods and electronics, look for:

  • Energy Star ratings: More stars = more efficient.
  • Inverter technology: Especially useful in fridges, air cons, and washers.
  • Smart timers and power-saving modes: Great for reducing standby power usage.

Efficient lighting

  • LEDs are the gold standard - they use up to 80% less energy than incandescent bulbs and last 5–10 times longer.
  • Lighting design matters too - place lights strategically to avoid needing multiple fittings in one room.

Renewable energy systems

A truly energy-efficient home often includes systems that generate and store their own energy:

  • Solar PV panels: Offset your electricity use with clean, free energy from the sun.
  • Solar hot water systems: Can cut water heating costs by up to 80%.
  • Home batteries: Let you store solar energy to use at night or during peak periods.
  • EV charging infrastructure: Future-proofs your home as electric vehicle use grows.

Smart technology

Smart homes = smarter energy use. Tech can help you automate and optimise your home’s energy consumption. Think:

  • Smart thermostats: Learn your habits and adjust heating/cooling accordingly.
  • Energy monitors: Show how much energy each appliance is using.
  • Automated blinds, fans and lights: Cut down on waste by responding to conditions in real-time.

Sustainable building materials

Finally, energy efficiency also extends to what your home is made from:

  • Recycled or locally sourced materials reduce environmental impact.
  • Low-VOC paints and finishes improve indoor air quality.
  • Sustainable timber from responsibly managed forests keeps your home eco-conscious from the ground up.

The pros: why efficient homes are winning over Aussies

Lower energy bills

You’ll pay less to keep your home comfortable, especially during those peak summer and winter months.

Better resale value

More buyers are looking for homes that will save them money in the long run. Energy-efficient properties often sell faster and at a premium.

Environmental impact

 A well-designed home uses less energy, reducing your carbon footprint without compromising on comfort.

Year-round comfort

Well-insulated homes stay cooler in summer and warmer in winter, without needing to blast the air con or heater 24/7.

Government incentives

Various rebates and grants are available for making your home more energy efficient, depending on your state or territory.

The cons: what to watch out for

Upfront costs

Building or retrofitting for energy efficiency can be pricey at first: solar systems, double glazing, and insulation all add up.

Knowledge gaps

Not all builders and tradies are trained in energy-efficient design. If you’re renovating or building, make sure you hire people who know what they’re doing.

Hidden performance issues

A home can be labelled “eco” or “sustainable” without necessarily being energy efficient. Watch for greenwashing and always ask for evidence.

Not all solutions suit all climates

What works in Hobart might not be ideal in Townsville. A truly efficient home considers local conditions, not just standard features.

The bottom line: worth it?

If you’re building, buying or even renting, energy efficiency should absolutely be on your radar. While the upfront costs can be higher, the long-term savings - on your bills and the environment - are well worth it.

More importantly, as energy prices continue to rise and Australia heads toward more ambitious climate targets, energy-efficient homes aren’t just a nice-to-have - they’re becoming a must.

Want to make sure your energy plan matches your efficient home or help future-proof your bills while you plan upgrades?

Call our friendly, Aussie-based team at Compare Energy on 1300 790 106. We'll help you find a plan that keeps your energy bills lean and green.