Australians are keen to cut home energy use, but cost, complexity and confidence gaps are slowing uptake of high-impact upgrades, new government research shows.
The Behavioural Economics Team of the Australian Government (BETA) surveyed nearly 4,900 people for its Towards Net Zero study, examining how households decide on upgrades such as rooftop solar, insulation and double glazing.
Despite strong interest in lowering bills and emissions, the findings show the decision process is often derailed by financial and informational barriers.
Cost is the leading hurdle.
Two-thirds of solar owners cited bill savings as their main motivation, but almost half reported upfront expenses made the decision harder. Those without solar were even more likely to view cost as the primary barrier.
Batteries faced similar resistance, with reduced feed-in tariffs also dampening uptake.
Cost-of-living pressures rarely spurred investment: just 6 per cent of respondents said they had upgraded to more efficient appliances in response, and 4 per cent had renovated to improve efficiency.
Technical complexity is another brake.
Half of respondents planning solar said choosing the right system size, installer and budget – and navigating technical jargon – was difficult.
Low awareness compounds the challenge: 18 per cent did not know if their home had insulation, and only 11 per cent had ever had an energy assessment, with many unable to recall the result. Just 8 per cent were “very confident” they knew which household actions most effectively cut emissions.
Confidence emerged as a critical enabler.
Households reporting higher confidence levels were more likely to already have insulation, double glazing, solar panels or electric vehicles installed. Respondents also valued the bundled benefits of upgrades – emissions reduction, comfort, bill savings and higher resale value – which together created stronger perceived value than any single benefit alone.
Complementary BETA research on decision-support tools, released in late 2024, found policy levers that could shift behaviour.
Trials with 13,800 participants showed mandatory disclosure of home energy ratings at sale or lease increased both buyers’ and sellers’ likelihood of choosing energy upgrades, especially when ratings were low. Sellers told disclosure was mandatory were 11 percentage points more likely to prioritise an energy upgrade over cosmetic changes. Access to clear, comparable ratings also improved buyers’ ability to select more efficient homes.
However, digital advice tools showed mixed results: while they boosted confidence, they did not increase near-term intention to upgrade.
The most requested resources were rebate information, cost-savings calculators and tailored upgrade guidance.
The findings further show that reaching Net Zero by 2050 will require targeted measures to reduce upfront costs, simplify technical decisions and raise consumer confidence.
Without these, even households motivated by both financial and environmental goals may delay or abandon high-impact energy upgrades.