With climate conditions worsening and cost-of-living pressures increasing, transitioning to predominantly-electric and energy efficient homes has become more important than ever. To unlock a more sustainable future for Australia, further coordinated action has to be taken at all levels.
The newest PropTrack and Origin Australian Home Energy Report explores the current adoption and knowledge of energy efficient features, motivations and barriers behind adoption and the opportunities to accelerate electrification.
With input from around 3000 respondents from the realestate.com.au Residential Audience Pulse Survey in April 2026, the report indicates that adoption is high, however, it tends to correspond with financial capacity, homeowner status, age and degree of understanding of energy-related terms.
Upfront costs, gaps in knowledge and lack of control are key barriers to household action and are especially prevalent in younger households and renters.
Read the full report: PropTrack Origin Australian Home Energy Report - 2026
Current energy efficiency uptake and recent expenditure
Energy efficiency is front of mind for Australians with four in five respondents indicating that they have at least one energy efficiency feature installed in their home.
Insulation (41%), efficient lighting (33%) and solar power (33%) were most common while disconnection from gas mains and home battery adoption saw the largest increase in prevalence, up 6% and 5% respectively over the past year.
Prevalence of energy efficient features - all households:
Source: realestate.com.au April 2026 Residential Pulse Survey N= 2957.
Adoption of energy efficient features was higher among older respondents (65+) compared to younger respondents (under 35s) and was more common among homeowners and sellers compared to renters, with many citing a lack of control over changes due to not owning their home.
Despite the high prevalence of energy efficiency features, recent spending on upgrades or new features has been modest, likely a result of cost-of-living pressures and knowledge gaps. Over half (55%) of survey respondents spent nothing or did not know about their expenditure in the past 12 months.
On average, households spent $4,540 to improve the energy efficiency over this period but expenditure was greater for respondents aged 35-64 years ($4,774) compared to under 35s.
Homeowners also spent 40% more than renters.
Both of these trends highlight the need for greater access and support for younger people and renters who have less capacity to adopt and upgrade their homes with energy efficient features.
Read the full report: PropTrack Origin Australian Home Energy Report - 2026
Most important and financially valuable features
Among the most common energy efficient features, respondents selected solar panels and insulation to be the most important feature when buying or renting a home.
Double/triple glazed windows and home battery story were also ranked among the most important.
Insulation was deemed as the second most important feature behind solar panels among respondents . Picture: Getty
In terms of the largest value-add to a home, solar panels were perceived as being the greatest while insulation and battery storage were deemed as valuable too.
However, about a quarter were unsure about which feature added the most financial value to a home and this was more pronounced in those aged under 35 (39%) reinforcing the broader theme of younger people being less aware of the benefits of upgrades or adoption.
The biggest hurdles to energy efficiency adoption
While 63% intend to improve home energy efficiency to reduce costs, upfront costs are the biggest hurdle with over two in five respondents reporting costs are their main challenge.
Lack of control due to renting is another major factor discouraging the adoption of energy efficient features. For respondents aged under 35, renting is just as significant a barrier as costs with over a third indicating that they have limited control over changes.
Main challenges to adoption energy efficiency features:
Source: realestate.com.au April 2026 Residential Pulse Survey N= 2957.
The long-term benefits generally outweigh the initial investment into energy but many people are unaware of the future payoffs. In addition, two in five do not know how to improve the energy efficiency of their homes.
Respondents who have a good understanding of energy-efficient features are more likely to have energy efficient features, have invested in improvements over the past 12 months and consider future upgrades.
Upfront costs are the main hurdle for energy efficiency adoption. For younger people, lack of control due to renting is just as significant a barrier. Picture: Getty
Conversely, those with no understanding of "energy efficiency" have no plans to invest in improvements over the next five years. This reflects how knowledge gaps are a barrier to household action.
Read the full report: PropTrack Origin Australian Home Energy Report - 2026
Future outlook on electrification
Currently, just under two in five (39%) respondents would consider switching to an all-electric home in the future, outweighing those who are uncertain or unwilling (31%).
Although sentiments remain largely unchanged over the past three years, which could point to a broader challenge around the awareness of it's benefits, it may reflect more homes electrifying over time and the reduction in the pool of households yet to make the switch.
In addition to this, the share of respondents who are planning to invest in home energy improvements over the next five years has risen from 65% to 69% and the average anticipated spend has increased to $8,340 which is a promising sign for the future.
Assuming this level of spending is realised across households, this would translate into an additional $3 billion nationally compared to last year, and a total of over $85 billion.
Anticipated home energy efficiency expenditures in the next 5 years
Source: realestate.com.au April 2026 Residential Pulse Survey N= 1541.
Despite the increase in the share of respondents planning to invest, older respondents and homeowners are expecting to spend well above younger respondents and renters, a trend which is consistent the spending patterns seen in the past 12 months.
The case for transitioning toward electrification and energy efficiency homes has never been more compelling. With rising cost of living, climate change concerns, and the need for more sustainable housing outcomes, Australia is at an important stage to further drive this shift.
Australians recognise the importance of energy efficiency in reducing energy costs and environmental impact, and in the value that it adds to homes. However, financial constraints and knowledge gaps still exist, continuing to limit widespread adoption.
In order to improve the adoption energy efficient features and work towards a predominantly-electric future, coordination across government, industry and communities will be required to remove barriers, build energy literacy and provide targeted programs and incentives for those who are resource-constrained.