As Australians contend with rising energy costs and intensifying climate events, the focus on improving energy efficiency at home has never been more critical.
The latest PropTrack Origin Australian Home Energy Report offers a timely and in-depth look at how Australians are navigating the journey to more energy-efficient, electrified homes and the challenges that continue to hold many back.
Drawing on insights from over 4,800 respondents to realestate.com.au’s January 2025 Residential Audience Pulse Survey, the report highlights a paradox: while the majority of Australians are motivated to make their homes more energy efficient, many remain unsure where to begin.
Read the full report: PropTrack Origin Australian Home Energy Report - 2025
This knowledge gap, compounded by financial constraints, represents a significant hurdle to widespread adoption of energy-efficient technologies and upgrades.
With energy prices remaining a key cost-of-living concern, households are increasingly seeking ways to take control of their energy use.
Two-thirds (65%) of respondents indicated they plan to invest in energy efficiency upgrades over the next five years, with cost savings emerging as the most powerful motivator. More than two in three respondents (68%) said their primary reason for considering upgrades was to reduce energy bills, while 55% also cited environmental concerns.
Yet despite this appetite, 40% of Australians don’t know how to improve the energy efficiency of their home. The challenge is most pronounced among younger Australians, with 45% of those under 35 reporting they don’t know where to start.
This is compounded by low awareness of key concepts only one-third of respondents reported a good understanding of the term “electrification”, with just over half reporting a good understanding of “energy efficiency” and “renewable energy”.
Read the full report: PropTrack Origin Australian Home Energy Report - 2025
The report makes clear that understanding is not just an academic exercise, it’s a powerful enabler of action. Australians who report a good grasp of energy-related terms are significantly more likely to have made home upgrades, to have shifted energy behaviours, and to plan further improvements in the future. In contrast, three in four of those with no understanding of “energy efficiency” have no plans to make changes.
What emerges from the data is not just a story of barriers, but one of substantial economic potential. The average respondent plans to spend around $7,950 on energy efficiency improvements over the next five years, with almost one in five respondents willing to spend more than $20,000.
If half of Australian households follow through, that equates to more than $100 billion in investment, a significant injection into the home energy market that could also unlock emissions reductions and long-term household savings.
However, without better education, financial support, and industry commitment, many households may remain locked out of the benefits given a large proportion (30%) are uncertain about their future spending on energy efficiency.
Read the full report: PropTrack Origin Australian Home Energy Report - 2025
Older Australians are leading the charge. Those aged 50–64 have the highest planned budgets, averaging more than $9,000, and are more likely to have already installed solar or energy-efficient appliances. They are also the most confident in their ability to fund upgrades, often through personal savings. These households are typically more likely to own their homes outright, removing financing and ownership constraints that younger Australians and renters often face.
The road to a more energy-efficient housing stock cannot rely on homeowners alone. Nearly half of Australians under 35 are renting and for many, a lack of control over the property is a key barrier to implementing upgrades. In fact, 47% of renters under 35 say this is the reason they haven’t taken steps to improve efficiency.
To accelerate adoption, it’s clear that renters need to be part of the conversation. That means clearer incentives, supportive policies, and practical advice that highlights actions renters can take - whether that’s installing LED lighting, using smart plugs, or engaging landlords in discussions about upgrading appliances or adding solar. Ensuring renters aren’t left behind is essential to delivering on net-zero ambitions.
While financial barriers remain top of mind – upfront costs were cited as the single biggest hurdle by 45% of respondents – the report underscores that action on education and support is just as critical. Households need confidence, guidance, and incentives to navigate a market that can often appear complex or out of reach.
Only 19% of respondents believe that current policies, grants, and incentives are sufficient. This suggests a clear mandate for governments, industry, and energy providers to collaborate in building greater awareness and access to solutions. Simplified information about ratings schemes (such as NatHERS), energy plans, available rebates, and upgrade pathways would go a long way toward enabling participation.
Read the full report: PropTrack Origin Australian Home Energy Report - 2025
Tools such as Origin’s “Home Energy Audit” guide, energy usage tracking apps, and digital education programs such as the So Watt? podcast are helping to bridge this knowledge gap. However, a more coordinated and comprehensive approach is needed to reach a broader cross-section of the population.
Importantly, the report also finds that energy-efficient features are increasingly influencing buyer and seller behaviour.
More than a third (36%) of respondents say they would pay more for a home with energy-efficient features such as solar panels or smart appliances. Among homeowners looking to sell, energy upgrades are more common, indicating an awareness of the added market value these features can provide.
This trend suggests energy efficiency is becoming a marker of home quality and will likely become a growing consideration in the Australian housing market over the coming years.
The urgency for action is clear. As we transition towards net zero, home electrification and energy efficiency are essential levers not only for reducing emissions, but also for enhancing affordability and resilience for households across Australia.
The good news is that the willingness is there. What’s needed now is a coordinated effort to close the knowledge gap, ease the financial burden, and empower all Australians – whether owners, renters, metro or regional – to make meaningful progress on their energy journey.
Because in the end, smarter homes don’t just reduce bills they power a more sustainable future for us all.
Read the full report: PropTrack Origin Australian Home Energy Report - 2025
