Thinking about installing solar? Learn how roof condition, shading, orientation, switchboard, roof material and household energy use affect your home's solar readiness.
Energy Efficiency
Energy-saving features for new homes
Discover the best energy-saving features for new homes, from insulation and solar panels to heat pumps and smart technology, to lower energy bills and improve comfort.
Building a new home is the perfect opportunity to include energy-saving features that can lower household running costs, improve comfort and reduce your environmental impact. While some upgrades may increase the upfront build cost, many can deliver savings over the life of your home through lower energy and water bills.
From thoughtful design choices to efficient appliances and renewable energy systems, incorporating energy-efficient features during the building stage is usually easier and more cost-effective than retrofitting them later.
Remember that newly built residential dwellings in Victoria are prohibited from new reticulated natural gas connections, making electrification the way to go.
Try RACV’s free electrification calculator to estimate your savings when going electric.
Smart ways to reduce energy bills from day one
Start with passive home design
The most effective energy-saving feature doesn't require electricity at all. Passive design uses your home's orientation, layout and materials to naturally keep it warmer in winter and cooler in summer.
Key passive design principles include:
- orienting living areas to maximise winter sunlight while minimising summer heat
- installing appropriately sized eaves or external shading
- positioning windows to encourage natural cross-ventilation
- using thermal mass materials, such as concrete or brick, to help regulate indoor temperatures
- minimising west-facing windows where possible to reduce afternoon heat gain.
A well-designed passive home can significantly reduce the need for artificial heating and cooling throughout the year.
More: Home energy ratings explained
Invest in high-quality insulation
Insulation is one of the most important features for improving your home's energy efficiency. It slows the transfer of heat, helping maintain a comfortable indoor temperature regardless of the season.
When building a new home, consider insulating:
- roof and ceiling spaces
- external walls
- suspended floors
- internal walls around garages or unheated areas.
The right insulation rating (R-value) will depend on your climate and the part of the home being insulated. Higher-performing insulation can improve comfort while reducing heating and cooling costs.
Don't forget to prevent draughts by sealing gaps around doors, windows, exhaust fans and pipe penetrations - it may reduce heat loss by 15 to 25 per cent, according to CSIRO.
More: How to insulate a house in a cost effective way
Choose energy-efficient windows
Windows can be responsible for significant heat gain and heat loss if they're not designed correctly. Almost 90 per cent of a home's heat is gained and up to 40 per cent of heating energy is lost through its windows, according to the Australian Department of Climate Change, Energy, the Environment and Water (DCCEEW).
Look for features such as:
- double or triple glazing
- low-emissivity (Low-E) glass
- thermally broken window frames
- well-fitted seals to reduce air leakage.
The placement and size of windows also matter. North-facing windows can capture winter sun, while external blinds, shutters or awnings can help block excessive summer heat.
More: How do double-glazed windows work? Are they right for your home?
Energy efficiency starts with passive home design and high-quality insulation. Image: Getty
Install efficient heating and cooling systems
The average Australian home uses 40 per cent of its energy on heating and cooling, according to the Australian Government website YourHome. That's why investing in efficient heating/cooling systems is a worthwhile investment.
Reverse-cycle air conditioners are overall the most efficient temperature control option for your home. They heat and cool your home using electricity rather than burning gas. Make sure to service your air conditioner regularly to keep your unit running at peak efficiency.
If you're building a larger home, consider zoning your heating and cooling so you only condition occupied rooms rather than the entire house.
Ceiling fans are another affordable addition that can reduce reliance on air conditioning by improving airflow during warmer months.
Upgrade to a heat pump hot water system
Hot water is a major contributor to household energy use, accounting for 15 to 30 per cent of household energy use according to DCCEEW.
Heat pump hot water systems use electricity to transfer heat from the surrounding air into water, making them significantly more efficient than traditional electric storage systems.
If you have solar panels, you can effectively use your solar power to heat and store hot water for use later, helping you reduce your water heating costs. Use a qualified technician when choosing and installing a hot water system for your household.
More: Guide to heat pump hot water systems
Install rooftop solar panels
Adding a solar photovoltaic (PV) system during construction can help reduce electricity bills from the day you move in. With solar panels, you can generate and use your own electricity during the day, rather than buying it from an energy retailer.
Installing solar during the build process is simpler than retrofitting it later, particularly if roof design, switchboards and electrical wiring are planned accordingly. Consider roof orientation, shading and roof space when designing your home to maximise solar energy potential.
The size of the system you choose should reflect your household's expected electricity use, available roof space and future needs, such as purchasing an electric vehicle or adding a solar battery.
More: Guide to solar panels for your home
Consider adding a home battery
While not essential, home batteries can store excess solar electricity generated during the day for use at night or during cloudy periods. This can further reduce the amount of electricity you need to purchase from the grid.
In some cases, a home battery can export stored electricity back to the grid, but how much you can earn depends on your energy retailer, tariff, inverter settings and whether you are part of a virtual power plant or similar battery optimisation program.
As battery technology continues to improve, prices may become more attractive over time. Even if you don't install a battery immediately, designing your home to accommodate one in the future can make upgrading easier.
Planning solar early can make it easier to position panels, optimise roof space and prepare the home for future electric appliances or EV charging.
Select energy-efficient appliances
Every appliance contributes to your home's overall energy consumption. When choosing appliances, compare their Energy Rating Labels and select the most efficient models that suit your household's needs. Common energy-efficient appliances include:
- refrigerators
- dishwashers
- washing machines
- clothes dryers
- ovens and cooktops
- reverse-cycle air conditioners.
Induction cooktops are becoming increasingly popular due to their fast heating, precise temperature control and high efficiency.
More: The household appliances that use the most power
Switch to LED lighting
LED lighting uses significantly less electricity than traditional incandescent or halogen bulbs, while lasting much longer.
During construction, think about lighting design as well as the fittings themselves. Maximising natural daylight can reduce the need for artificial lighting during the day.
Motion sensors in garages, hallways and outdoor areas can also help avoid unnecessary electricity use.
More: Best lightbulbs to save energy and money
Make your home EV-ready
Even if you don't currently own an electric vehicle (EV), preparing your home for an EV charger can save money in the future. Consider:
- installing a conduit for future EV charger wiring
- allowing space on the switchboard
- ensuring sufficient electrical capacity
- positioning the garage to make charging convenient.
Planning ahead can avoid costly electrical upgrades later.
More: Installing an electric car home charger - what to know
Include smart home energy controls
Smart technology can help households better understand and manage energy use. Useful features include:
- smart thermostats
- smart lighting controls
- energy monitoring systems
- smart power outlets
- automated blinds and shading.
Many systems allow homeowners to monitor electricity use through smartphone apps, making it easier to identify opportunities to reduce energy consumption.
More: The smart home devices that can help you save money
Prioritise water efficiency
Reducing water use also reduces the energy needed to heat it. Water-saving features include:
- low-flow showerheads
- water-efficient taps and washing machines
- dual-flush toilets
- rainwater tanks for garden irrigation or toilet flushing
- water-efficient landscaping that requires less irrigation.
The biggest water-users in the home are washing machines, showers, taps and toilets, according to DCCEEW, so prioritise those first.
A new build is a great opportunity to choose appliances that support lower energy use and long-term savings.
Energy efficient new homes FAQs
Some energy-efficient upgrades increase upfront construction costs, but many deliver ongoing savings through lower energy and water bills. Features such as insulation, efficient windows and passive design can also improve year-round comfort and increase the home's long-term value.
Good home design, quality insulation and effective draught seal can deliver some of the greatest long-term energy savings. These features reduce the need for heating and cooling before appliances or renewable energy systems are considered.
For many households, rooftop solar can reduce ongoing electricity bills, particularly if much of the generated electricity is used during the day. Installing solar during construction can also be more straightforward than adding it later.
If your budget doesn't allow every upgrade immediately, consider including infrastructure that makes future improvements easier. This might include roof space for additional solar panels, battery-ready wiring or larger electrical switchboards to support growing household electricity demand.
