A new national report has highlighted what we’ve known for years – improving a home’s energy efficiency starts with better insulation.
The recent report How to Halve Renters’ Energy Bills, released by the Institute for Energy Economics and Financial Analysis (IEEFA), found that upgrading Australia’s rental properties with better insulation, efficient electric appliances and solar could reduce renters’ energy bills by up to 50%, delivering an estimated $107 billion in energy bill savings by 2050.
For landlords, property managers and tenants, it’s another reminder that insulation isn’t just about comfort, it’s one of the smartest long-term investments you can make.
Why insulation matters
One of the report’s strongest messages is that thermal efficiency upgrades are a critical first step in reducing household energy use.
A well-insulated home:
- Keeps warmth inside during winter
- Reduces unwanted heat in summer
- Makes heating and cooling systems work less
- Improves year-round comfort
- Reduces energy bills
Without adequate insulation, homes lose valuable heating in winter and gain excessive heat during summer, forcing occupants to rely more heavily on their heating and cooling systems.
Australian renters are missing out
More than 30% of Australian households rent, yet rental properties are significantly less likely to have adequate insulation or other energy-efficient features than owner-occupied homes. The report found that many renters experience homes that are too hot in summer, too cold in winter and are increasingly expensive to run.
A major reason is what’s known as the “split incentive” – landlords pay for upgrades, while tenants receive the savings through lower energy bills. This has historically slowed investment in energy efficiency across Australia’s rental housing.
Victoria is leading the way
The report also highlights Victoria’s new minimum energy efficiency standards for rental properties, coming into effect from March 2027.
These standards will require many rental homes to include:
- Ceiling insulation
- Energy-efficient electric heating
- Energy-efficient cooling
- Efficient hot water systems
- Draught proofing
- Water-efficient showerheads
This represents one of Australia’s biggest shifts towards healthier, more energy-efficient rental housing.
Ceiling insulation delivers immediate benefits
While the report examines several types of home upgrades, it consistently identifies thermal efficiency improvements, including ceiling insulation, as one of the most cost-effective ways to reduce energy bills.
Good ceiling insulation helps:
- Reduce heating costs during winter
- Improve summer comfort
- Lower greenhouse gas emissions
- Reduce reliance on heating and cooling
- Create a healthier indoor environment
Whether you’re a homeowner, landlord or property manager, improving insulation is often the easiest place to start.
What this means for landlords
With new standards approaching and energy costs continuing to rise, landlords have an opportunity to future-proof their properties while improving comfort for tenants.
Investing in insulation today can help:
- Prepare properties for future compliance
- Improve tenant satisfaction
- Reduce running costs
- Increase the overall energy performance of the home
- Support Australia’s transition to more energy-efficient housing
How Enviroflex can help
At Enviroflex, we’ve been helping Victorian homeowners, landlords and property managers improve the energy performance of their homes for decades.
We provide:
- Ceiling insulation installation
- Insulation removal and replacement
- Wall insulation retrofits
- Underfloor insulation
- Expert advice on improving home energy efficiency
Whether you’re preparing a rental property for future standards or simply want a warmer, healthier and more energy-efficient home, our experienced team can help you choose the right insulation solution.
Ready to improve your home’s energy efficiency?
As this latest report shows, better insulation isn’t just about staying warm, it’s one of the most effective ways to reduce energy bills and improve comfort for years to come.
Contact Enviroflex today to book a free home insulation assessment and discover how upgrading your insulation can make a real difference to your home.