- Introduction
Australia faces a significant challenge: most homes were built before modern energy efficiency standards. These dwellings are often uncomfortable, expensive to run, and high contributors to greenhouse gas emissions. The Climateworks Centre outlines how a coordinated national effort—via the Built Environment (BE) Sector Plan—can enable a large-scale home renovation wave to transform these houses into efficient, climate-ready homes.
- The Case for Renovation
High energy waste: Many homes lack adequate insulation, sealing, and efficient appliances.
Climate vulnerability: Poor-quality housing leaves households exposed to heatwaves, cold winters, and rising energy costs.
Scale of opportunity: Up to 11 million homes (80% of existing dwellings) can benefit from upgrades.
- Upgrade Pathways
The report defines three tiers of renovation, each offering increasing benefits:
- Quick-Fix
Ceiling insulation
Draught sealing
Efficient heat pump (heating/cooling)
Heavy drapes or shutters
- Modest Upgrade
All Quick-Fix measures plus:
Floor insulation
Upgraded glazing (film or extra glass layer)
- Climate-Ready
All Quick-Fix measures plus:
Wall insulation
Comprehensive draught sealing
Double-glazed windows
Heat recovery ventilation
- Regional Variations
Victoria, Tasmania, South Australia, ACT: Best outcomes from insulation and electrification with heat pumps.
Queensland & Northern Territory: Stronger benefits from appliance electrification (hot water systems, induction cooking).
NSW & Western Australia: Mixed climates require flexible, region-specific solutions.
- Benefits of the Renovation Wave
Household Level
Energy bill savings: $1,850 – $2,600 per year depending on upgrade level.
Improved comfort and resilience during extreme weather.
National Level
Emissions: Cuts over 2 tonnes CO₂ per household annually.
Energy grid: Reduces peak demand by 1.4 – 6 kW per home.
Health: For every $1 spent on retrofits, up to $10 saved in healthcare costs.
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Policy & Program Recommendations
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Equity First
Prioritize low-income, First Nations, social housing, and energy-poor households.
- Regulation & Standards
Minimum energy efficiency for rentals.
Mandatory energy ratings at sale or lease.
- Financing Mechanisms
Expand green loans and retrofit incentives.
Leverage private capital alongside government funding.
- Workforce & Supply Chains
Train and scale skilled retrofit professionals.
Strengthen availability of insulation, glazing, and heat pumps.
- Gas Phase-Out Support
Replace gas appliances with electric alternatives as part of upgrades.
- One-Stop Shops
Centralized services offering assessments, advice, and trusted installers.