Understanding where you use energy in the home is key to reducing energy consumption. Small changes can make a big impact and reduce your energy bill.
Energy consumption in the average Victorian home
According to the 2023 Finder Consumer Sentiment Tracker, the average household in Victoria spends $1,244 on electricity and $1,136 on gas each year.
In order to effectively reduce your energy bill you need to understand where your home's energy is being used. The graph below is from Sustainability Victoria and shows a breakdown of energy usage in the average household.
Source: Sustainability Victoria
As you can see, heating and water heating are by far the largest home energy users, together accounting for 60% of total energy consumption. Finding ways to reduce your usage will make a large impact on your energy bill.
Heating your home
The thermal efficiency of your home plays a big factor in how well your home stays warm in winter. The more thermally efficient your home is, the less heating required to keep it at a comfortable temperature.
According to a recent study by the Victorian Government, 65% of householders could save money by sealing up gaps in the home and improving the efficiency of their heating. The best ways to reduce your heating bill include:
Install ceiling, wall and floor insulation. For many existing households, installing ceiling insulation will be far cheaper and easier than installing floor or wall insulation. The good news is installing insulation in your ceiling is the most effective of all three in improving your homes thermal performance.
Reduce unwanted draughts by ceiling gaps in the building shell. Sealing gaps in walls and floors and installing window and door seals will help your home retain a comfortable temperature without the need for excess energy usage. You can view a guide of draught proofing your home here.
Employ an electrician to install draft stoppers on unsealed exhaust fans. Check the exhaust fan in your bathroom to see if it has a sealing flap fitted. If not, warm air from your home can escape into the ceiling space, wasting energy.
Upgrade to a more efficient heater. There are currently excellent rebates available to upgrade your existing heater to a more efficient system. For example, upgrading an older split system air conditioner to a newer more efficient model can result in significant energy savings. You can download the Victorian Government's Consumer Fact Sheet here for more information.
Install double glazing to reduce heat loss and heat gain through your windows by almost 30%. Double glazed windows are very energy efficient and are ideal for colder Victorian climates.
Source: Sustainability Victoria
Install a chimney seal. If you have an older-style fire place, installing a chimney seal is one of the easiest and most effective ways of improving your home's ability to maintain a comfortable temperature.
Cooling your home
Many of the upgrades listed above would also improve your homes ability to keep cool during summer. This is important, as the study referred to earlier found 85% of homes are currently uncomfortable in hot weather. Many of these improvements are offered for free or heavily discounted in the Victorian Energy Upgrades (VEU) program. Head over to our Current Rebates page for a full list of rebates available.
Hot water (water heating)
On average, water heating accounts for 17% of the total energy bill in Victoria. Replacing an inefficient existing electric resistance or gas storage hot water unit with a more efficient system can reduce power usage by up to 75%. According to Sustainability Victoria, this could mean an annual saving of up to $600 for an average 4 person household.
There are generous rebates on offer for heat pump and solar hot water systems. For example, replacing an electric resistance hot water system with a heat pump may only cost a few hundred dollars (or nothing) if you are able to access multiple rebates.
It is very important you work with a reputable installer that understands the products and rebates available to you. For installation of a heat pump or solar hot water system, you may be eligible for one or more of the following rebates:
Small scale technology certificates / STCs (approximately $750)
Solar Victoria hot water rebate ($1,000)
Victorian energy efficiency certificates / VEECs (approximately $1,000 - $1,500)
Other energy saving ideas
Okay, now that we've covered the two biggest home energy users, lets look at ways to reduce energy consumption in other parts of your home.
Fridges and freezers. Adjust the temperature on your fridge and freezer to 4-5 degrees and -15 degrees. Cooler temperature settings are unnecessary and increase energy consumption quite significantly. You should also consider upgrading older fridges to newer models with a better star efficiency rating. Finally, consider relocating all fridges exposed to direct sunlight and switch off secondary fridges when not in use.
Home Entertainment. Standby electricity usage refers to energy used by appliances when on standby mode. In other words, your appliance is not in use, but still switched on at the powerpoint. For appliances like your television, the energy usage in standby mode can be quite significant over time. It is best to proactively switch off all appliances when not in use.
Cooking. As a rule of thumb, anything that requires heat uses significant amounts of energy. You can cook more efficiently by utilising the fan-forced setting on your oven (which allows cooking at a lower temperature) and consider cooking multiple meals at once. You could also consider upgrading from a gas cooktop to an electric induction cooktop, as these are approximately 3 times more efficient. There are plans for a new rebate for induction cooktops to be introduced into the Victorian Energy Upgrades program in 2024.
Clothes washers and dryers. Washing clothing with only cold water can reduce the energy consumption by up to 80%. Additionally, spinning clothes on a high speed setting and only washing full loads will decrease overall energy usage. For clothes dryers, a significant amount of energy can be saved by simply making sure you thoroughly spin the clothes in the washing machine first.
For more helpful energy saving tips check out Top 10 DIY Home Energy Saving Tips. Would you like to find out how much you could save by implementing the energy efficiency upgrades listed above? View the Home Energy Calculator and Current Rebates pages for more information.