Housing thermal quality and energy efficiency
State of Sustainability Report 2024
This information is part of our State of Sustainability Report 2024.
Each year we commission research to track how Victorians think, feel and act in relation to sustainability and climate change. Our State of Sustainability Report shows where Victoria is doing well, and how we can support communities to be climate resilient.
Victoria’s homes contribute 23% of the state’s annual greenhouse gas emissions. The critical factors in sustainable living are:
- a home’s thermal quality (ability to stay warm or cool) and energy efficiency
- the type of energy used.
Heating accounts for 43% of an average home’s energy costs, making energy-efficient appliances vital in addressing cost-of-living.
Significant improvements are needed in energy efficiency across Victorian homes, with more than 50% requiring upgrades.
Two main systems use most of the home's energy: heating and hot water
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Two main systems use most of the home's energy: heating and hot water.
- They account for 60% of average annual energy costs.
- Heating accounts for 43% of average annual energy costs.
- Hot water systems account for 17% of average annual energy costs.
Poor energy performance impacts on:
- our health (homes are less healthy to live in)
- energy costs to heat and cool
- the energy grid
- the wider community.
Many Victorian homes are too hot or cold
The research assessed the thermal features of homes using a scale, ranging from ‘good’ to ‘extremely poor’. The results show that 60% of Victorians live in homes with ‘good’ or ‘moderate’ thermal quality.
Some 40% live in homes classified as ‘poor’ or worse, indicating these homes have zero, one or two thermal features, such as:
Spread of Victorians' homes across the thermal quality scale
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Spread of Victorians' homes across the thermal quality scale:
- 13% are classified as 'good'
- 47% are classified as 'moderate'.
- 10% are classified as 'poor'
- 19% are classified as 'very poor'
- 11% are classified as 'extremely poor'.
Quality of life affected by extreme weather
Victorians living in homes with poor thermal quality experience greater discomfort during extreme weather. Twenty-seven per cent of respondents reported that they had to leave their homes at some point due to uncomfortable temperatures.
To cope with rising heatwaves, most respondents (77%) rely on air conditioning and/or use window shading (73%).
Appliance energy efficiency can be improved
The research also evaluated the energy efficiency of major home appliances, including:
Only 28% of homes had both energy-efficient heating and hot water systems. Most homes (72%) still require improvements to boost energy efficiency.
Renters face lower energy efficiency
Renters are more likely to live in homes with low energy efficiency. Forty-two per cent said they had energy-efficient heating, compared to 58% of homeowners. As a result, 49% of renters’ homes are classified as having low or no energy efficiency, compared to 27% of homeowners.
Renters are also:
- significantly more likely to live in homes with poor thermal quality (64%) compared to homeowners (30%)
- twice as likely to leave their homes temporarily due to extreme weather.