Tips to Make Your Home Energy Efficient and Save Money

Energy efficiency is more than just a buzzword in Australian households. With rising energy prices and increasing awareness around environmental impact, creating an energy-efficient home is the smart way to save money and reduce your carbon footprint.  

Whether you're looking to cut costs, make your home more comfortable year-round, or do your bit for the planet, upgrading your home’s energy efficiency can offer massive returns. This guide will give Australian homeowners actionable tips to save energy and money while complying with industry guidelines and best practices. 

Why Home Energy Efficiency Matters 

Energy efficiency isn’t just about saving a few extra dollars on your energy bills (although that’s a great bonus!). It also plays a significant role in: 

• Reducing your carbon footprint: Efficient homes use less energy, which reduces greenhouse gas emissions. 
• Improving comfort at home: Energy upgrades like insulation and better temperature control make your living space more enjoyable. 
• Boosting your home’s value: A high energy rating, thanks to efficient appliances and design, can increase property value. 
• Helping the Australian energy market: Energy efficiency across households contributes to a more sustainable and balanced grid. 

The Rising Cost of Energy 

Energy prices remain a key concern for Australian households. In 2023, the Australian Energy Regulator (AER) confirmed that electricity prices would rise by 20% to 25% for many residential customers in New South Wales, South-East Queensland, South Australia, and Victoria. Source: abc.net.au 

In 2024, the AER’s final decision on the Default Market Offer (DMO) indicated that most residential customers would see electricity price changes ranging from a 6% decrease to a 4% increase, depending on their region and energy usage patterns. Source: aer.gov.au 

These pricing shifts highlight the ongoing importance of energy efficiency and careful plan comparison in managing household energy costs. 

Energy efficiency offers relief. By understanding how energy is consumed and where waste occurs, you can manage usage better and reduce your yearly costs substantially. 

Environmental and Comfort Benefits  

Energy efficiency isn’t just about money. By consuming less power, you contribute to lowering greenhouse gas emissions, making a positive environmental impact. Plus, an energy-efficient home is often a more comfortable home, offering better temperature regulation and reduced maintenance costs.  

10 Tips to Make Your Home Energy Efficient  

Here are some quick and affordable ways to make your home more energy efficient: 

1. Start with Understanding Your Energy Habits  

Before implementing changes, identify how your household currently uses energy. 

• Review your energy bills and look for spikes in usage. 
• Use smart meters or energy monitoring tools offered by your energy provider.  
• Identify peak energy usage times to see where adjustments can be made (e.g., heating during the day vs. late at night).  

Tip: An energy usage baseline will help you measure the impact of efficiency improvements over time.  

2. Seal Up Leaks with Better Insulation  

Heating and cooling account for roughly 40% of household energy use in Australia. Source: energy.gov.au Poor insulation leads to major energy waste.  

• Upgrade the insulation in your ceiling, walls, and floors if possible.  
• Seal gaps around doors, windows, and skirting boards to prevent air leakage. 
• Use heavy curtains or double-glazed windows to maintain indoor temperatures. 

Simple Fix: Use draft stoppers or weather stripping to seal gaps around entry doors and windows.  

3. Upgrade to Energy-Efficient Appliances  

Older appliances may seem budget-friendly, but their energy consumption can cost you more in the long run.  

• Check for Energy Rating Labels when shopping for appliances. More stars mean greater efficiency.  
• Look at the appliance’s annual kWh consumption to understand running costs.  
• Avoid oversized appliances that exceed your household’s actual needs.  

Tip: Check if your state offers rebates or discounts for energy-efficient appliances, such as hot water systems or fridges.  

4. Make the Switch to LED Lighting  

Lighting can account for up to 10% of a household's electricity use in Australia, and sticking with outdated bulbs may be adding more to your power bill than you think.  

• Replace halogen or incandescent bulbs with LED alternatives, which consume 75% less energy and last much longer.  
• Install motion sensors or timers in infrequently used areas like hallways or outdoor spaces.  
• Maximise natural daylight by keeping windows clean and unobstructed. 

Did You Know? LEDs can last up to 10 times longer than traditional bulbs, saving you replacement costs too.  

Source: energy.gov.au 

5. Optimise Heating and Cooling Use  

Efficient temperature regulation can drastically reduce your energy costs.  

• Set thermostats to 18–20°C in winter and 25–27°C in summer. Every degree outside these ranges increases energy use by 5–10%.  
• Regularly clean air-conditioner filters and service them to improve performance.  
• Use zoning systems to heat or cool only rooms in use. 

Alternative: Ceiling fans use far less energy than air conditioners, making them a great supplementary option.  

6. Power Down Standby Devices  

Standby power—often called "phantom energy"—can account for around 6% of electricity use in the average Australian household, according to YourHome.gov.au. Other estimates, such as from ABC News and Canstar Blue, suggest that appliances left on standby could add up to 10% of your power bill, potentially costing households over $100 each year. Switching off devices at the wall when not in use is a simple way to cut back on unnecessary energy use and save money. 

• Turn off devices at the wall rather than leaving them on standby.  
• Use smart power strips that automatically cut power to inactive devices.  
• Unplug energy-intensive devices like gaming consoles or chargers when not in use.  

Tip: Smart home technology can automate these changes for you!  

7. Explore Solar Energy  

Solar panels are an investment that can yield significant long-term savings.  

• Installing a solar system can lead to substantial savings on electricity bills for Australian households. According to the University of New South Wales, households can save an average of $1,300 per year with solar power, depending on system size, energy usage, and location. Additional estimates from industry experts suggest that a standard 5kW solar system in Sydney can generate around 7,000 kWh of electricity per year. At an average electricity rate of $0.30 per kWh, this could equate to savings of approximately $2,100 annually. Source - rpc.com.au 
• Government initiatives, like the Small-scale Renewable Energy Scheme, can help offset upfront costs.  

Check your roof’s orientation and shading or use government-approved solar calculators to assess the potential benefits.  

8. Compare Energy Plans Regularly  

Even with an energy-efficient home, an expensive energy plan can nullify your savings.  

• Use platforms like Econnex Comparison to quickly and accurately compare electricity and gas plans.  
• Look out for lower usage rates, supply charges, and better solar feed-in tariffs.  
• Check for discounts or flexible pricing based on your energy use.  

Pro Tip: Government websites like the AER’s “Energy Made Easy” offer unbiased tools to compare energy providers.  

9. Reduce Hot Water Energy Use  

Hot water accounts for 21% of household energy consumption. Making simple adjustments can create a big impact. Source: linkplumbing.com.au 

• Wash clothes in cold water when possible.  
• Install low-flow showerheads to reduce water and heating usage.  
• Set hot water systems to 60°C for storage systems or 50°C for instantaneous systems.  

10. Build an Energy-Saving Culture at Home  

Energy efficiency may works best when the whole household is on board.  

• Get family members involved by teaching energy-efficient behaviours like turning off lights or shortening shower durations.  
• Create a rewards system for kids who help meet monthly energy-saving goals.  
• Display energy bills prominently to track and celebrate progress together.  

Bigger Investments for Long-Term Savings 

If you’re ready to take the next step towards energy efficiency, consider these upgrades: 

1. Install Solar Panels 

Installing a solar system is a practical way to reduce your reliance on the grid and lower your electricity bills. According to the University of New South Wales, households can save around $1,300 per year with solar, depending on factors like system size, location, and energy habits. 

To get even more value from your solar setup, you might consider adding a battery storage system. Batteries allow you to store unused solar energy during the day and use it later—like in the evening or during blackouts—helping you rely less on the grid and avoid peak-time charges. While batteries involve additional upfront costs, new government incentives may help reduce those expenses and improve the long-term return on investment. Source: qld.gov.au 

2. Invest in Double-Glazed Windows 

Double-glazed windows minimise heat entering in the summer and escaping in the winter. While the upfront cost is high, they provide up to 30% more insulation compared to single-pane windows. 

3. Switch to Energy-Efficient Appliances 

When it’s time to upgrade appliances, always check their Energy Rating Label. High star ratings mean lower running costs. While energy-efficient models may cost more upfront, the long-term savings make them worthwhile. 

4. Consider Going All-Electric 

Replacing gas-powered appliances (like heaters and hot water systems) with electric alternatives such as reverse cycle air conditioners or heat pumps can save money and reduce emissions. The Australian government and many state programs provide rebates for switching to electric systems. 

Compare Energy Plans for Maximum Savings 

Beyond making your home more energy efficient, comparing your gas and electric providers is crucial. Many Australians overpay for energy because they haven’t switched plans. Use these tips to compare energy prices effectively: 

• Look for plans with discounts for prompt payments or direct debit. 
• Compare energy providers using tools from independent organisations or government websites. 
• Check for green energy options if you aim to switch to renewable sources. 

There are numerous tools available to help you compare energy plans, including state-specific comparison sites and free nationwide platforms. 

Pro Tip: Use keywords like "gas elec comparison" or "compare energy prices" to find the ideal energy comparison tools online.  

Small Habits Make Big Impacts 

Making your home more energy-efficient doesn’t have to be overwhelming. Starting with small changes—like switching off appliances or using fans instead of air conditioning—can add up over time. Bigger investments, such as solar panels and insulation, will further enhance savings while boosting your home’s value. 

Remember, saving energy isn’t only good for your wallet; it’s also a critical action in fighting climate change and supporting a greener Australia. 

Energy efficiency starts today. Start comparing energy providers through our easy, accessible tool to find the most cost-effective options for your household.