This report finds that rooftop solar, electrification and thermal efficiency upgrades for 1.2 million homes over seven years would generate construction, indirect employment and household bill savings of up to $17 billion in gross domestic product over the lives of the upgrades.

Key findings

• Households will play a central role in helping Australia achieve its net zero target by 2050. Improving energy efficiency and increasing electrification through  renovation and upgrades offers a clear national economic opportunity that can be kick-started by targeting low-income households.
• Barriers exist to improving the energy efficiency and energy performance of low income housing. If home energy upgrades could be achieved, it would bring multiple benefits to the household including lower energy bills, reduced energy hardship, better health outcomes and climate resilience.
• To help accelerate the uptake of home energy upgrades across different types of low-income housing dwelling types, the Australian Council of Social Service (ACOSS) has proposed a suite of policies supported by a funding mechanism, the Australian Efficiency Resilience Retrofit Fund (AERRF). The AERRF would deliver a mixture of direct funding and low-cost financing over the next seven years.
• This study models the benefits of accelerating home energy upgrades as per the ACOSS proposal. It quantifies taking this action above and beyond existing government policy, and measures direct benefits to households and Australia's economy.
• By investing in low-income housing upgrades, Australia can drive home energy upgrades, which have to occur on the path to net zero. This lowers the cost to the wider economy and appropriately designed financing and policy mechanisms could lower the up-front cost to low-income households, driving longer run cost-of-living and economic benefits.