Aussies tipped to spend $80bn to save on power bills
Households are spending billions in upgrading to more sustainable and energy-efficient products, but it is an investment to lower their electricity bills over environmental concerns.
A report released by REA Group with Origin found that half of Australians are looking to make their homes more sustainable, as they see it as a way of saving on their electricity bills.
When homeowners were asked the reasons why they would switch to more energy-efficient appliances, 68 per cent said it was due to cost of living and the price of energy, outweighing the 55 per cent who cited environmental concerns.
But saving money on their power bills will come at a huge cost over the short term, with the average household planning to spend $7,50 on energy-efficient improvements over the next five years, signalling a potential spend of more than $80bn nationwide.
REA Group senior economist Eleanor Creagh said the rising cost of living had placed affordability at the forefront of household concerns, with homeowners and renters seeking solutions to reduce energy bills.
'Making the switch to all-electric appliances in the home could help save costs, reduce energy use and lower carbon emissions,' she said.
'Yet, upfront costs and knowledge gaps are significant barriers preventing many from adopting energy-efficient features.'
Just shy of two in three respondents said property owners should be responsible for improving energy efficiency in established homes, while about half put some of the onus on either the federal or state government.
The findings follow the quarterly consumer price index data released by the Australian Bureau of Statistics that showed quarterly growth in housing was driven by a spike in electricity prices, which were up 16.3 per cent.
The rise was driven by increased electricity prices in Brisbane, where most households have used up the $1000 Queensland state government electricity rebate. resulting in higher out-of-pocket electricity costs.
The report also found that only 34 per cent of respondents had a good understanding of the benefits of 'electrification', a term that those under the age of 35 knew least about.
Origin retail executive general manager Jon Briskin said while saving money was a huge motivator for Australians, many didn't know where to start.
'Small changes to energy habits and upgrading to more efficient appliances within their budget is a good starting point for many households,' he said.
Ms Creagh said Aussies with a greater understanding of energy-efficient appliances were more likely to convert their property to electricity compared with those with no knowledge.
'It's clear that people with a good understanding of energy efficiency are more likely to make upgrades to their home and alter their behaviour to reduce energy use. This indicates that wider education is crucial to improving energy efficiency across Australia,' she said.
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