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When the cicadas start singing and the mercury climbs, most Australians brace for another summer of scorching days and restless nights. But for millions of Australians, the season also means stifling, inefficient homes that trap heat, drive up bills and endanger health.
Yes, this is another article about Australian “glorified tents”. But we’re focusing here on the rental homes that bleed energy, money and wellbeing.
The state of our homes
Energy Consumers Australia’s latest Consumer Energy Report Card shows that fewer than half of the 4000 households surveyed said they could keep their homes comfortable on hot days without using a lot of energy. Renters are particularly exposed: they make up almost 70 per cent of the households meeting two or more indicators of energy hardship — from financial stress and bill payment difficulties to going without heating or cooling.
80 per cent of owner-occupied homes have at least one form of insulation, compared with just 37 per cent of rentals
In total, one in five Australian households are likely to be experiencing some form of energy hardship. The common thread? Living in homes that leak heat in winter and trap it in summer.
Why renters are worse off
Even after accounting for factors such as net wealth, renters spend about 8 per cent more on electricity than comparable homeowners – largely because they live in less efficient buildings and have inefficient appliances.
ECA’s data shows 80 per cent of owner-occupied homes have at least one form of insulation, compared with just 37 per cent of rentals. Solar access tells a similar story: only 9 per cent of rental properties have rooftop solar, compared with nearly half of homes owned outright. And households with solar are significantly less likely to experience energy hardship.
Renters also face unique barriers. They can’t retrofit their homes, rarely have the tenure security to justify investment and often find themselves locked out of programs designed for homeowners. The result is a systemic disadvantage, widening the energy divide.
With housing affordability a key issue in Australia, it is expected that the proportion of renters will increase considerably in the next decades. For this reason, we must immediately consider and put in place protections for an ever-increasing population that lacks the agency and the resources to improve the energy efficiency of the homes they live in.
A problem built into the system
Australia’s housing stock is among the least efficient in the developed world. Minimum energy performance standards were introduced later here than in most comparable countries — and at a much lower benchmark.
A Tasmanian home built today uses more than double the energy of a similar house built in Ireland
To give you an idea, six per cent of deaths in Australia are related to people living in households that are too cold – double the rate in Sweden, where winter temperatures reach minus 30 degrees. Not convinced? Well, a Tasmanian home built today uses more than double the energy of a similar house built in Ireland.
For homes built before 2005 – prior to the introduction of any minimum energy efficiency requirements – things are even worse. While current requirements for new builds are 7 stars (on a scale that goes from 0 to 10) on the Nationwide House Energy Rating Scheme (NatHERS). Pre-2005 properties are estimated to be around 1.8 stars, and make a significant proportion of rental properties.
The good news? The benefits of efficient housing are clear. Upgrading to a 7 star home can cut annual electricity costs by $1500 to $4000, depending on household size and location. Roof and ceiling insulation alone can reduce heating and cooling costs by up to 45 per cent.
Where policy is – and isn’t – working
Some jurisdictions have started to act. The ACT requires ceiling insulation in rentals. Victoria mandates efficient heating in living areas and, from 2027, will require efficient electric systems when old ones fail, plus ceiling insulation and draught-proofing. South Australia and NSW have been flirting with the idea, but no commitment yet.
Most states and territories, however, still have no enforceable energy efficiency requirements for rentals. This policy gap leaves millions of Australians exposed to high costs, poor health and unsafe living conditions.
Energy hardship starts at home
When we talk about affordability, we often focus on energy prices — but price is only half the story. The other half lies in how much energy our homes waste.
The graph below shows how much energy is required for heating and cooling a property in different cities across Australia depending on their home energy rating.
Figure 1 – Star band curve (energy load for heating and cooling)
As seen above, the NatHERS scale is non-linear. A 4 star home in Sydney or Melbourne, for instance, requires about a third of the energy needed (per meter squared per year) to heat and cool a 1 star home. A 7 star home uses less than half of the energy for heating and cooling as a 4-star home. Upgrading lower rated properties (0 to 2 stars) to somewhere between 4 and 6 stars has a massive impact on household energy bills and thermal comfort and can contribute to mitigating energy hardship.
A clear path forward
Energy Consumers Australia wants state and territory governments to consider implementing minimum energy performance standards for rental properties using NatHERS ratings as the benchmark. This can provide clear guidance to landlords and prevent them from renting out poorly performing homes until they are upgraded to ensure a reasonably comfortable and affordable home.
Governments must also introduce mandatory disclosure of home energy ratings at the point of sale or lease, ensuring tenants and buyers can make informed choices. These policies should sit within a broader strategy to decarbonise and upgrade Australia’s building stock — integrating efficiency, electrification and equity.
Best-practice examples overseas show what’s possible. The UK has used the Energy Performance Certificate (EPC) rating as the national standard for rental properties since 2018. Buildings are rated from “A” (best) to “G” (worst), and since 2020, landlords cannot let or continue to let properties rated below E. In France, landlords of F- and G-rated homes can no longer raise rents, and from 2025, the worst G-rated properties will be banned from the rental market altogether. Both countries have demonstrated that a performance-based approach creates clarity, accountability and market momentum for improvement.
From policy to fairness
Energy efficiency is the foundation of a fair and liveable Australia. In a changing climate, the ability to stay cool in summer and warm in winter should not depend on whether you rent or own your home.
Fixing Australia’s “glorified tents” will do more than lower bills – it will reduce emissions, protect public health and ensure everyone can live in comfort and dignity, all year round.