With winter fast approaching, households are seeking out ways to slash their energy costs and reduce the chance of a potential bill shock through features like solar power, energy efficient lighting, appliances and adequate draught proofing.

According to the new PropTrack Origin Australian Home Energy Report, released Friday, most households view energy efficiency as important or extremely important, particularly in the colder states of Tasmania, Victoria and South Australia.

Drawing on views of over 4,500 respondents to the realestate.com.au Residential Audience Pulse Survey and Origin customer data, the report indicates a widespread embrace of energy-efficient features among Australians largely driven by a motivation to reduce bills.

With home prices and rents surging across the country, 77% of buyers and 72% of renters consider energy efficiency ratings important in helping reduce their power bills.

PropTrack senior analyst and report author Karen Dellow said the financial factor was ‘really important’ for both buyers and renters.

“When we asked them the reason for valuing energy efficiency ratings in their property, the majority of buyers and renters wanted to reduce their regular energy bills,” Ms Dellow said.

“And for renters, even more were concerned about reducing the chance of bill shock.”

It comes as rental affordability hit to its lowest level in at least 17 years, according to the recent PropTrack Rental Affordability Report.

Ms Dellow said one in three renters deem energy efficiency extremely important, compared to one in five buyers.

“With weekly median rents currently at record highs, renters are actively seeking additional avenues to save money,” she said.

“Their heightened sensitivity to the possibility of sudden spikes in bills surpasses that of buyers, showcasing a pronounced emphasis on financial efficiency in their housing decisions.”

Buyers were more interested in solar power, type and quality of insulation and window glazing than renters, the report found.

For renters, smart appliances were a popular option to enhance energy efficiency at minimal expense, with a quarter of renters surveyed by Origin owning a smart appliance.

“A renter can’t put solar panels on the roof or change anything substantially to a property, so renters are more likely to have to find other ways to save money,” Ms Dellow explained.

“There’s the smaller things like smart appliances, more efficient lighting, things that you can do that don’t cost an awful lot of money, but can be transferred to another property in the future.

“The ones who own a house actually have more options in terms of what they can do to the house.”

According to tenant advocacy organisation, Better Renting, energy performance features such as ceiling insulation, reverse-cycle air conditioners and solar panels are less common in rental homes.

The charity tracked conditions of over 100 renters in their homes over summer and found some renters spent much of it in unhealthy and even dangerous temperature ranges.

Renters with high cost of living pressures were also reluctant to use energy for mechanical cooling and much more likely to be trapped in hot homes without means to cool down or escape.

Tenants’ Union of NSW chief executive Leo Patterson Ross said large rent and power bill hikes are putting “real pressure” on budgets, with rent the biggest cost of living for renting households.

“Renters have less capacity to save on energy costs by modifying their home, and less choice in where to make their home,” he said.

This week, the Australian Energy Regulator foreshadowed cutting power bills by between 0.4% to 7.1% from July, saying economic conditions and electricity price hikes over the last two years have made energy less affordable for many households.

The report found solar power was the most popular feature to help generate savings, with 85% of buyers and 67% of renters expressing keen interest in having solar panels installed.

About three quarters of respondents would also pay more for a home with solar panels.

Window glazing was also deemed valuable by almost half of respondents.

While upfront costs remain a key barrier to these energy efficient technologies, Ms Dellow said this will change as prices decrease and people realise the financial and environmental benefits.

“As the years go by, they’re going to become cheaper and that’s when people will start adopting these as commonplace features to have in a house,” she said.

The long-term financial benefits encouraged Brisbane project director Peter Mauracher to install a new 13kW solar system to replace his “very cheap” 5kW home solar system, to cope with his household’s energy demands.

At a changeover cost of $13,000, Mr Mauracher describes it as a “really good investment” and expects to break even within five years.

“My previous system started to fail but after we recently installed ducted aircon and I am charging my electric vehicle at home, our family got a lot more energy hungry,” he said.

“The new 13kW system can handle those increased loads with ease and being a higher quality system, promises a longer service life.”

Origin Energy executive general manager, retail, Jon Briskin said the report highlights the barriers and challenges that remain for some people to understand and access these benefits.

“With cost-of-living pressures having an impact for Australian households, the energy industry has an important role to play in making sure no one is left behind and that all Australians, regardless of their circumstances, can take control of their energy and benefit from a cleaner and smarter energy future.”

“The energy solutions that work for different Australian households will vary significantly based on their specific needs, so it is our role to help customers navigate the complexity and make it simple and easy for them.”

Sourced from realestate.com