1. Introduction
The key time to improve energy performance of existing homes is when renovating — by adding in upgrades for improved energy performance, safer indoor temperatures, and lowered energy bills.
This project aims to improve the energy performance standards of existing buildings, which make up the majority of Australia’s building stock. Improving the quality and performance of most of Australia’s nearly 11 million homes is equally as important as increasing the performance of newly built homes.
Most homes making up Australia’s existing building stock were built before any energy performance standards existed. In Victoria, for example, existing homes are rated well-below current building standards, rated at or below 2 NatHERS stars on average. For existing residential building stock to become zero carbon aligned, renovation and retrofit initiatives will be essential.
Why renovate? Renovation is more sustainable than demolishing and rebuilding homes, due to the embodied emissions from materials, construction and demolition. It also helps retain the architectural and heritage value of our cities and suburbs.
New homes and major changes to existing homes must be constructed to the minimum standards required by the National Construction Code (NCC). The energy performance standards in the NCC were increased in 2022 from 6 to 7 stars, using the Nationwide House Energy Rating Scheme (NatHERS) and using a whole-of-home energy budget (kWh).
However, even a 7 star rating is a long way off year-round energy efficiency, and lower energy bills. Much more can be done for homes to reach low or zero carbon emissions, produce no emissions on site, and deliver higher levels of comfort during hot summers and cold winters. Well planned renovations, however, can deliver financial and health benefits, as well as mitigate climate change.
To achieve low carbon building stocks we need a better understanding of existing buildings, across all climate zones and for different kinds of homes – single detached dwellings, townhouses and apartments. Currently, this understanding is a key missing piece of knowledge that prevents better support for different communities – for busy homeowners, landlords and renters, social housing providers and vulnerable households alike. A recent research study by Sustainability Victoria demonstrated savings in healthcare bills ($887) and energy bills ($85) over 3-month winter period – for a modest average investment of under $3000 to improve efficiency in homes.
To support large scale energy performance renovations across Australia, for everyone, we need effective supportive government policy in place, as well as finance support and a skilled workforce in industry to renovate homes. We also need consumer understanding.
What we’re doing
The Renovation Pathways project will provide critical analysis and advice enabling the kick start and scaling up of Australia’s building stock through renovation and information about zero carbon and resilient building standards.
Renovation Pathways has two stages:
- Developing data to inform renovation strategies and policy advice in each climate zone, to achieve zero carbon and resilient buildings in a cost-effective manner.
- Informing action across different stakeholder groups (policy makers, banks, construction industry, consumer groups) and supporting the development of the enabling environment necessary to scale up zero carbon homes and resilient renovations across Australia.
2. Key releases
Enabling Australia’s home renovation wave
Our new report focuses on how the Australian Government's built environment sectoral plan can enable emissions reductions and co-benefits through coordinated policy action.
Climate-ready homes: Building the case for a renovation wave in Australia
Climateworks Centre’s Renovation Pathways research program identifies ways governments and the private sector can enable home energy performance upgrades in a coordinated manner.
Renovation Pathways: Defining zero carbon homes for a climate resilient future
Defining what a zero carbon home looks like in practice is essential for informing policy-makers, lenders, the construction industry and households in the transition to Australia's zero carbon future.
3. Steps we're taking
4. Our team
5. Partners
The program is led by Climateworks Centre. Renovation Pathways is being conducted in collaboration with CSIRO and Strategy Policy Research.
Renovation Pathway is funded by philanthropic organisations, and we thank all our ongoing supporters, including Energy Consumers Australia and the Lord Mayor’s Charitable Foundation.
6. Resources
Upgrading Australia’s worst-performing homes could save enough energy to power 4.5 million EVs
New Climateworks Centre analysis reveals that each Australian state and territory could dramatically reduce household energy consumption by upgrading its worst-performing homes. The energy saved would be enough to power 4.5 million EVs per year.
Renovations and rewiring can multiply the decarbonisation dividend
Our research shows why conversations about home electrification should go hand in hand with conversations about improving home insulation and energy performance. Electrifying an energy efficient home reduces net demand, meaning faster decarbonisation at scale.
How Australians benefit from climate-ready homes – The Briefing Room
Poor home energy efficiency is a reality of life for most Australians.
Renovating an Australian home can reduce emissions and energy costs. So how do savings in your state or territory stack up?
Our Climate-ready homes report shows most Australians could dramatically reduce their energy use and save thousands each year, by upgrading the thermal efficiency of their homes. The findings are relevant for the majority of existing residences across Australia – 11 million homes across all climate zones, from cool temperate to hot-dry or tropical. When analysed by state and territory, the greatest potential savings are found in regions with colder winters – which is also where most Australians live. Nationally, however, even the lowest potential savings (in warmer climate zones) add up to nearly $1,000 a year. And of course, human health and wellbeing improvements stack up right alongside these savings.
Submission on the Victorian Domestic Building Contracts Act to the Department of Government Services
In 2023, the Victorian Government announced a package of construction industry reforms aimed at protecting Victorians when they build or renovate their homes.
Climate-ready homes: Building the case for a renovation wave in Australia
Climateworks Centre’s Renovation Pathways research program identifies ways governments and the private sector can enable home energy performance upgrades in a coordinated manner.
Renovation Pathways: Defining zero carbon homes for a climate resilient future
Defining what a zero carbon home looks like in practice is essential for informing policy-makers, lenders, the construction industry and households in the transition to Australia's zero carbon future.
Renovate homes to cope with cost of living crisis and climate change impacts, Climateworks Centre says
Australian households could save up to $2,200 a year on energy bills by upgrading homes built before 2003 with better insulation and electrifying appliances and heating, a new report by Monash University’s Climateworks Centre says.
Renovation Pathways: Project update and preliminary findings of cost-benefit analysis, April 2023
There are early indications that energy performance upgrades are able to pay for themselves through energy savings.
Decarbonisation futures
How will we decarbonise as a nation? Harnessing a combination of technology, society and policy that drive new and existing solutions. ‘Decarbonisation futures’ explores how Australia can limit global warming through technological, social and policy drivers.
7-star housing is a step towards zero carbon – but there’s much more to do, starting with existing homes
Energy-efficiency standards for new homes in Australia are being upgraded for the first time in a decade.
Raising Australian building standards can deliver climate-ready homes sooner
A consultation process is underway to inform what standards will be considered for Australia’s National Construction Code (NCC) 2025.
