Pathways to scale: Retrofitting One Million+ homes

Abstract

Australia needs a targeted and coordinated effort to retrofit the millions of existing homes. This report presents the foundational research that will underpin an effort to engage private finance to begin by retrofitting over one million Australian homes for thermal and energy efficiency. The scheme aims to retrofit homes so that they can support Australia’s current and future comfort and energy needs and facilitate the transition to renewable energy. The way we generate and use energy is transforming. Our homes need to evolve alongside this to support our needs for comfort, efficiency, and resilience. Maximising thermal and energy efficiency in homes, moving energy demand into periods of maximum renewable generation, and enabling electrification can also support the transition toward net zero. Based on modelling in this report, retrofitting one million existing Australian homes across five years could: • Reduce average home energy use by up to 9,000kWh per year • Reduce average home emissions by up to 5.8 tonnes CO2 eq per year • Create an up to $55 billion private finance investment opportunity A bespoke home retrofit, addressing needs identified through a whole-of-home assessment could reduce an average home energy bill by up to $1,600 per year. A large-scale home retrofit scheme can create jobs for Australian communities, reduce energy use for heating and cooling and cut carbon emissions whilst stimulating private investment. This is evidenced by international retrofit programs. This project reviewed eight international programs from the United Kingdom, Europe, United States of America, and New Zealand. These programs demonstrated that large-scale retrofits can be effectively implemented and yield positive impacts including stimulate investment, save energy, reduce greenhouse gas emission, increase employment and local business activity, provide good return on investment of public money (1:4+), create health benefits for home occupants and increase property value. The research outlined in this report supports development of a public-private partnership to retrofit one million plus homes, across five years. It recommends that a large-scale home retrofit scheme aims to create future ready homes. That is; improved thermal comfort with a path toward electrification. The report outlines key insights to inform the design and implementation of an effective retrofit scheme. It then recommends a suite of coordinated actions required from stakeholders across the Australian home retrofit ecosystem to support a large-scale scheme. It also paves the way for a longer-term research program that can fill gaps in our current understanding to maximise the effectiveness of home retrofits at scale. There is a substantial market opportunity in Australia. The task ahead is large and complex, yet feasible through collaborative efforts. And now more than ever before. The PAGE 4 Pathways to Scale: Retrofitting One Million+ Homes insights for effective retrofit scheme design and recommendations for a portfolio of coordinated action outlined in this report can guide this effort and transform Australia’s existing homes for a prosperous, net-zero emissions future.