Australia can cost-effectively strengthen residential energy efficiency standards in the Building Code and cut heating and cooling energy use by up to 51 per cent, according to a new report released today by the Australian Sustainable Built Environment Council (ASBEC) and ClimateWorks Australia.

Implementing these changes now could deliver Australians savings of up to $150 per household per year on energy bills, with savings more than offsetting additional capital costs. It could also deliver more comfortable homes, reduce stress on the electricity grid, and cut emissions by around 10.8 million tonnes to 2050 – more than the amount emitted annually by Victoria’s Loy Yang B coal-fired power station.

The Bottom Line – household impacts of delaying improved energy requirements in the Building Code report shows these savings could come from simple energy efficiency improvements such as air tightness, ceiling fans, and roof insulation.

The houses we build in coming years will be in use for decades, well beyond 2050 when Australia will need to be near net zero emissions. Buildings account for almost a quarter of national emissions, and more than half of electricity use. With half a million homes projected to be built between 2019 and 2022, delaying improved energy standards by just three years would lock in an estimated $1.1 billion in unnecessary household energy bills, and 3 million tonnes of additional emissions by 2050.

Looking further ahead, the benefits of an improved Code will add up fast. An estimated 58 per cent of Australia’s expected building stock in 2050 will be built after 2019. With buildings accounting for almost a quarter of national emissions and more than half of national electricity consumption, this makes the Code an indispensable policy tool to transition to zero emissions in line with Australia’s commitments under the Paris Climate Change Agreement.

The Australian Building Codes Board has today released a proposal to update the Code energy requirements for 2019. This includes improvements to the requirements for housing, but there is no proposal to strengthen the required level of energy efficiency for homes.

“We welcome the proposed improvements in the non-residential energy requirements”, said Tony Arnel, President of the Energy Efficiency Council and Chair of ASBEC’s National Construction Code Working Group.   “If implemented, these changes could deliver significant energy and emissions benefits in the non-residential sector. The draft changes for residential buildings are also a good start.  However, our report demonstrates that greater opportunities exists to improve residential performance.”

“At a time when many families are struggling to cope with rising living costs, low standards for energy efficiency mean higher bills for Australian households. Low income households, who spend a higher proportion of their income on energy bills, stand to benefit the most.” said Suzanne Toumbourou, ASBEC’s Executive Director.

“Low energy homes put less stress on the electricity grid. If just one household makes efficiency improvements and cuts their peak demand by one kilowatt (kW) – the power used to run a small oil heater –  this would save almost $1,000 in electricity system infrastructure, reducing electricity prices for everyone.” said Tony Arnel. “In total, the proposed changes could save an estimated $1.2 billion to 2050 through avoided and deferred network investments”.

“We already know that improving Australia’s built environment provides some of the most ‘shovel-ready’ opportunities to meet our Paris Climate Change Agreement obligations. If we miss this opportunity, other sectors of Australia’s economy will need to cut emissions more. That may not be as fast or cost-effective, making Australia’s emissions reduction task more expensive overall.” said ClimateWorks Program Manager, Eli Court.

“With the threat of 50 degree days in Sydney and Melbourne, we need to consider whether our homes are ready to provide safe indoor temperatures. Air conditioning may not be enough if our homes are not built to strong energy standards.” said Suzanne Toumbourou.

“The energy requirements in the Building Code were last updated in 2010 and are next due to be updated in 2019. There is currently no plan to strengthen standards for residential buildings in this Code update. Further delay means that we will be building to 2010 standards all the way to 2022, locking in higher emissions and energy costs.” said Tony Arnel.

“This study considered only simple, ‘lowest common denominator’ energy efficiency improvements.  As leading building practitioners have shown us, with best practice design for energy efficiency, such as attention to building orientation and window sizing and placement, further low-cost improvements in energy efficiency are possible.” said Eli Court.

Read The Bottom Line – household impacts of delaying improved energy requirements in the Building Code

Download the full media release here.