Renovation nation: Aussies plan $85b in energy upgrades

Australian households plan to spend $85 billion on home energy upgrades over the next five years, a study has found, averaging more than $8300 per home.

But renters and younger Australians could miss out on the trend, with both groups budgeting significantly less for home improvements.

PropTrack and Origin released the findings on Wednesday from a survey of almost 3000 people, which also found up-front costs and knowledge gaps were holding back investment.

The research comes weeks after Australian households passed a milestone, installing more than half a million battery systems, while more than 4.5 million homes and businesses added solar panels.

PropTrack surveyed 2957 people for the Australian Home Energy Report, asking about their plans to improve energy efficiency at home.

Almost seven in 10 planned upgrades over the next five years, with average spending of $8340 per household, up from $7950 in 2025, which the report said could translate into $85 billion nationally.

Not all households would invest equally, however, with those aged between 50 and 64 years planning to spend $9450 on average, while respondents under 35 years planned to spend $5900.

Renters also planned to spend less on energy upgrades than home-owners, RealEstate.com.au senior economist Eleanor Creagh said, due to a lack of control over their living circumstances.

“Despite the growing momentum for planned future investment, many households still face real barriers to taking action,” she said.

“Younger Australians and renters remain the most challenged when it comes to adopting electrification, even though the long-term benefits and cost savings are significant.”

Participants ranked solar panels and insulation as the top two most important energy upgrades, followed by glazed windows, home battery storage, and efficient appliances.

Up-front costs remained the biggest challenge to upgrading energy efficiency for all age groups, the report found, though a lack of grants and incentives also ranked highly, along with knowledge gaps.

Clear information would be vital to boosting Australians’ energy literacy, Origin retail executive general manager Jon Briskin said, as well as encouraging households to audit and track their electricity use.

“Small changes can make a real difference and many households are already adjusting their energy habits,” he said.

“Checking star ratings of appliances, using draught-stoppers and switching appliances off at the wall are a good place to start.”

Regional households were also more likely to have insulation, solar panels and efficient lighting installed, the study found, and almost one in five participants said they would consider converting their property to electricity-only.