Lower energy bills? Start at home.

Australia's response to rising energy bills has focused heavily on one-off subsidies and debates about slowing large-scale renewables, while largely ignoring the root issue: how much energy homes actually consume.

But new modelling from IEEFA, the Institute for Energy Economics and Financial Analysis, shows that typical Australian household energy bills could be slashed by more than 90% in many parts of the country by combining home energy upgrades such as efficient electric appliances, rooftop solar and batteries.

Most Australian houses, particularly older ones built before minimum thermal efficiency standards were introduced in the mid-2000s, remain poorly insulated and energy inefficient.

These homes often rely on inefficient appliances—especially gas heaters and resistive electric elements—that drive up household energy demand and bills.

While rooftop solar has been a national success story and battery adoption is growing, these technologies are limited if homes remain thermally inefficient or reliant on fossil fuels.

“Homes that are thermally efficient – without air gaps or draughts and with adequate insulation – have the lowest running costs, and greatest health benefits of all,” the report says.

These upgrades also reduce pressure on gas supplies and the electricity grid, benefiting both industrial users and the wider energy system.

But barriers remain, especially for renters and low-income households who lack capital or control to make energy upgrades, highlighting the need for better incentives and regulations.

Experts argue that the most effective and equitable way to cut energy bills is to invest in home upgrades—and that future policy must reflect this by rewarding efficient households and reforming how energy networks are regulated.

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