Save energy in the home

Last updated: 7 October 2022

By reducing the amount of energy you use at home, you will:

  • save money
  • reduce greenhouse gas emissions.

Breakdown of running costs in the home

A bar graph showing household appliance energy use: Heating 38%, Water heating 15%, Refrigeration 11%, Home entertainment 7%, Lighting 6%, Cooking 5%, Cooling 4%, Dishwaters 2%, Washing machines and dryers 2%.

The above statistics are based on the Residential Baseline Study, 2016.

Running costs also depend on:

  • how efficient your appliance is
  • how efficiently your appliance is running
  • how you use your appliance and how often
  • the energy or gas rate you’re on.

Ways to reduce energy costs


In Victoria, heating uses the most amount of energy in your home, so upgrading your heating system can be the most effective way to cut your energy bill. Upgrading to an electric reverse cycle split system is the most energy efficient, lowest cost heating option available that generates the lowest greenhouse emissions.

Learn more at Choose the right heating system for your home and discover ways to Heat your home efficiently.

Water heating

Hot water accounts for around at least 15% of the average Victorian household’s energy costs. The simplest ways to reduce the cost of water heating are to reduce your hot water use and ensure your system is operating efficiently.

Install a low-flow shower head. Take shorter showers. Wash your clothes in cold water. Fix dripping hot water taps. Insulate exposed hot water pipes. Have your hot water system serviced regularly.

If you have an older hot water system it will be less efficient and replacing it with a heat-pump hot water unit is a great option.

Learn more about hot water systems.

Other home appliances

Energy-efficient home appliances often cost more to buy. But they save money in the long run, as you spend less money to run them.

When you buy a new appliance, use the energy rating labels to compare models and lifetime running costs. The more stars the label has, the more energy efficient it is and the lower the running cost will be.

Understand energy rating labels.

Use home appliances efficiently

No matter how efficient your appliance is, you need to use it efficiently to save money on your energy bills.

Read how to choose the right appliance for energy efficiency, and how use them efficiently:

Correctly dispose of old appliances

Make sure you dispose your unwanted appliances at your local e-waste drop off point to help protect the environment.

Learn about how to dispose of e-waste.

Solar PV

Install a solar PV system to generate electricity from the sun.

Learn about solar power.

Ensure you're on the lowest rate

To reduce your energy bills further, find a better rate with Victorian Energy Compare.

1 July 2019

Household energy action guide

The Household energy action guide offers simple, cost-effective ways to reduce your energy bills by taking action around your home. Could you be doing more to save energy and money?