Power down: Eight ways to reduce your energy bill

James Thornhill
08:30am September 04 2024

Technician installs solar panels on the roof of a suburban home. (Getty)

With many households feeling the pinch from cost-of-living pressures, it pays to find savings where you can. And with energy bills on the rise, making your home more energy efficient is a great place to start.  

Here are eight steps to consider:

Step 1: Identify and seal air leaks

Many homes, particularly older ones, are draughty, allowing cold air in during winter and hot air in summer. This can result in an uncomfortable living environment as well as raising heating and cooling expenses.

Make use of self-adhesive weatherstrips to seal gaps around doors and windows and install draught excluders at the bottom of external doors. 

Identify and seal cracks around door and window frames, skirting boards, and other joints. You can use flexible caulking to fill small cracks and expandable foam fillers for larger holes. If you have an unused fireplace, sealing it will help to reduce air leakage. 

Step 2: Insulate your home

Good insulation is crucial for keeping your house warm in winter and cool in summer. A well-insulated house will reduce reliance on heating and cooling systems, resulting in potential cost savings.

There are different types of insulation available, including bulk insulation like glasswool (fiberglass), which traps air to block heat, and reflective insulation that bounces heat away. An expert will be able to offer guidance on what might work best for your home. 

If installing ceiling insulation yourself, it’s important to ensure there are no gaps or squashed areas that would reduce effectiveness. Also, maintain good ventilation to avoid moisture problems and leave space around electrical fixtures to prevent fire hazards.

Step 3: Upgrade windows and coverings

Improving the thermal performance of your windows can help to improve energy efficiency. For example, old single-pane windows tend to cause heat gain in summer and heat loss in winter. 

Installing heavy curtains with pelmets (boxes above curtains that block draughts) helps to retain warmth in winter and block heat from the sun in summer.

Using external roller shutters to block direct sunlight can help to keep a house cooler in summer adding another layer of energy-efficiency. 

Step 4: Improve heating and cooling efficiency

Replacing an old gas heater with a reverse cycle air conditioner can make a big difference to the energy efficiency of your home. Choose a model with a high energy efficiency star rating - the more stars on the Energy Rating Label, the less energy the product will use, potentially leading to bigger savings.

By replacing old, energy-inefficient systems at end of their life cycle, you can upgrade your home in a way that can lead to significant operational cost savings over time. 

Step 5: Upgrade your hot water system

Heating water for showers, baths and washing clothes is one of the biggest contributors to an average home’s energy consumption. 

An electric heat pump or solar boosted system can be more cost efficient to operate compared to a traditional gas hot water system. These alterative systems may have higher initial purchase costs, but local government energy-saving incentives may be available to reduce the overall expense.

Step 6: Upgrade cooking appliances and electrify the home

Replaced an old gas cooktop with an induction cooktop, which heats pots and pans directly, makes cooking faster and more energy efficient. 

When replacing any household appliance that runs on gas, consider if an electric alternative is available. Ultimately, you might be able to close your gas account and eliminate the gas supply charge. 

Step 7: Install solar panels

Many households have already taken the step to put solar panels on the roof as a cost-effective way to reduce electricity bills and reliance on the main power grid. Rooftop solar generates over 10 per cent of Australia’s electricity, according to the Clean Energy Council. 

You can assess your home’s solar potential using the online tools in the Solar Consumer Guide. It might also be worth considering installing battery storage – allowing you to store the solar power generated by your panels during daylight hours for use around the clock. 

Step 8: Leverage government grants and rebates

A range of government grants and rebates are available that can make energy-efficient upgrades more affordable by reducing upfront costs.

The Federal Government’s Rebates and Loans for Solar and Rebates and Assistance pages have information on available incentives for solar panels, heat pumps, and other energy-saving tips.


The guidance contained in this article is based on advice from the Federal Government’s energy guidance for households site, the YourHome site, and the Green Building Council of Australia’s Guide to Sustainable Home Renovations.

More information is also available on the Westpac website: 
- Budget-Friendly Home Upgrades for Energy Efficiency: Ella's story
- Unlocking home energy savings

Westpac now offers Sustainable Upgrades home and investor loans for customers to make energy-efficient upgrades to their home, supported by the government’s Clean Energy Finance Corporation. 

Customers with an existing or approved eligible home loan can apply to borrow up to $50,000 with a loan term of up to ten years to install new features or technology to improve their property’s energy efficiency or climate resilience. 

Any savings claims made in this article are general in nature and based on theoretical research findings. Actual costs and bill savings will depend on a range of factors including (but not limited to) location, property, system components, weather, energy consumption and feed-in tariffs.

James Thornhill

James Thornhill was appointed as editor of Westpac Wire in May 2022. Prior to joining the bank, he was a business and financial journalist with more than two decades of experience with international newswires. Most recently, he was a resources correspondent for Bloomberg, covering the mining and energy sectors, and previously reported on a broad range of topics from economics and politics to currency and bond markets. Originally from the UK, he’s had stints working in London, New York and Singapore, but is now happily settled in Sydney.

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