5 Reasons Why Australian Buyers are Prioritizing Energy Efficient Homes

5 Reasons Why Australian Buyers are Prioritizing Energy Efficient Homes

Last updated on May 9, 2024

In the rapidly growing Australian real estate landscape, a new trend is shaping the search criteria for house buyers. Most Aussie home investors, particularly those in the colder states of Tasmania, Victoria, and South Australia want to invest their resources only in the most energy-efficient homes.   

According to a survey from PropTrack Origin Australian Home Energy Report, as many as 59% of Australian home buyers say that the energy efficiency number is one of the first considerations they look for when buying or renting a new house.

Additionally, in another study by Schneider Electric, the leader in the digital transformation of energy management and automation, 86% of Australians believe making homes more energy efficient is the most popular home improvement action at the moment.  

Looking at this data, you might be wondering why there is a spike in the demand for energy efficient homes across Australia. But worry not, in this article, we will take a closer look at the five key reasons behind this trend.

So, read on and you will soon want an energy efficient home too! 

1. Lowering Energy Bills

The main reason why Australian buyers are prioritizing efficient homes is to reduce their energy bills. This is supported by a survey conducted by the Residential Audience Pulse Survey alongside the Origin Customer Data.

Both surveys interviewed a total of 6000 Australian renters and buyers and found that up to 77% of buyers believe that energy efficient homes would help them bring their energy costs down.

But is it achievable?

Yes, it is achievable with a combination of strategic design and the use of energy-efficient technologies.

For example, the use of special insulation keeps temperatures comfortable, which in turn reduces the need for heating and cooling systems that consume a lot of electricity.

Furthermore, energy efficient homes are designed to use energy star rated appliances like refrigerators, washers, and dishwashers that use less power compared to conventional models. This lowers electricity costs for homeowners.

Additionally, smart homes have high-tech solutions for cutting energy costs. For example, programmable thermostats let you control the temperature more precisely. You can schedule heating and cooling, access settings remotely, and track usage.

This helps use energy more efficiently and avoid waste. 

Similarly, smart lights can switch on/off based on room occupancy or light levels also preventing wasted electricity. Lastly, solar panels and heat pumps offer sustainable alternatives, reducing dependence on conventional power grids and subsequently lowering utility expenses.

2. Environmental Concerns and Sustainability

According to the Department of Climate Change, Energy, the Environment and Water, residential homes account for over 10% of Australia’s total carbon emissions. With this information, more eco-conscious Australian homebuyers feel the need to play an active role in protecting the environment.

One effective solution is embracing energy-efficient homes.

First, these residences often incorporate renewable energy sources like solar panels and heat pumps, reducing reliance on fossil fuels – a major pollutant. According to Statista data, Australia’s fossil fuel emissions reached 393.2 million metric tons in 2022.

By utilizing clean energy alternatives, energy-efficient homes help mitigate these emissions, fostering a cleaner, more sustainable environment.

Furthermore, residences designed for energy efficiency tend to utilize water-saving appliances and fixtures aiding in conserving a vital resource: water.

In various parts of Australia, where climate and geography exacerbate water scarcity concerns, this aspect holds particular significance – it helps preserve the local ecosystems and reduce the energy required for water treatment and distribution.

Lastly, energy-efficient homes utilize environmentally friendly materials and methods. Recycled steel, bamboo, and paints containing minimal volatile compounds are examples.

Such options tend to originate from sustainable sources or undergo manufacturing processes that minimize environmental harm. Their impact contrasts with conventional materials associated with greater ecological damage. 

3. Resale Value and Investment

Another reason why buyers prefer homes with energy-efficient features is that these homes boast significant resale value and investment potential. They are perceived as valuable assets that enhance a property’s long-term value.

Buyers recognize that investing in such a residence is a financially wise decision as it will not only cut on costs but also fetch higher returns if they ever decide to resell.  According to RCenergy buyers who invest in energy-efficient properties may expect up to 2 – 9.4% profit if they decide to resell.

On top of this, energy-efficient homes often come with lower running costs due to reduced energy consumption. This appeals to future buyers, who understand that the higher investment will be paid back over time.

As a result, they are willing to pay a premium for these homes, knowing that the initial investment will be offset by reduced ongoing expenses.

4. Government Incentives and Policy Support

Another reason why buyers prefer energy efficient homes is because the Australian authorities encourage and support them.

The authorities recognize the environmental and economic advantages of sustainable living, so they encourage its adoption through various initiatives.

These include grants, rebates, and tax incentives – all aimed to reduce the upfront costs associated with energy-efficient technologies, appliances, and home improvements.

For instance, The Energy Efficient Homes Package offers rebates for homeowners to install ceiling insulation and purchase new energy-efficient appliances.

Under this program, households receive 50% of the total installation cost, up to $2,500, for both ceiling insulation and rooftop solar panels. This makes energy-efficiency upgrades more accessible and affordable.

Moreover, government policies that promote renewable energy sources like feed-in tariffs, which provide financial incentives for homeowners who generate excess clean energy and supply it back to the grid, further encourage incorporating energy efficient residences.

5. Comfort and Wellbeing

Energy-efficient homes provide benefits beyond financial and environmental aspects. They offer enhanced comfort and well-being, attracting Australian buyers. These residences maintain stable indoor temperatures year-round, minimizing excessive heating or cooling needs.

This design creates a comfortable living environment throughout various seasons at no extra energy costs. 

Additionally, energy-efficient homes often feature improved air quality through better insulation and ventilation systems. This can lead to reduced exposure to pollutants, allergens, and other airborne particles, benefiting the health and overall wellbeing of residents.

On top of that, noise levels are typically lower due to enhanced insulation blocking external sounds. This contributes to a more peaceful and relaxing living experience, allowing occupants to enjoy a higher quality of life.


So, there you have it—a deep dive into the key factors driving the demand for energy-efficient homes in Australia.

With this knowledge, you too should consider joining the growing movement towards energy-efficient homes. Not only will you be reducing your energy bills, but you will also be making a smart investment with long-term rewards.

Think about it and make the right move now!

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E-Green Electrical

E-Green Electrical is a top tier energy efficiency company based in Sydney. We focus on utilising government rebates to help reduce our clients energy consumption by installing energy efficient solutions. E-Green boasts a rich heritage within the realm of energy efficiency, consistently staying up to date with cutting-edge technologies to deliver optimal results for our valued customers.

We don't just sell products and services; we also provides tips and information on how to help reduce energy consumption. We believe in using energy wisely and teaching others how to do the same. For E-Green, it’s important to share knowledge with the community. That's why we regularly write articles about saving energy, new government rebates available and increasing sustainability.

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