Home upgrades and electrification could help millions of people who swelter in summer and freeze in winter

Australians could slash their energy bill by thousands per year with quick-fix home upgrades, electrification and rooftop solar power, which could hugely benefit those on low incomes.

Research commissioned by the Australian Council of Social Service (ACOSS) revealed improvements such as upgrading insulation, installing electric heat pumps and savings from installing rooftop solar would put downward pressure on power bills across the country as they would improve energy efficiency and also help the environment by reducing emissions.

Victorian households could save $4,053 annually on their energy bill and those in apartments $2,276. The savings for NSW residents living in a house could amount to $3,373 and $2,333 for those in apartments.

People in the ACT could save up to $5,975, annually, according to the new analysis based on Climateworks Centre modelling. Tasmanians could save up to $4,123, South Australians up to $4,123, Queenslanders up to $2,740 and West Australians up to $2,865.

The council's chief executive Cassandra Goldie says these upgrades would be a significant boon for Australians on lower incomes.

"Millions of people on low incomes, including income support, are sweltering through summer and freezing through winter because they cannot afford to keep their homes at a healthy temperature," Dr Goldie said.

"They are forced to choose between eating, paying for medicine or their energy bill."

She has urged the federal and state government to earmark billions to help accelerate and scale-up energy upgrades for low-income housing at the May budget.

“We are calling on the federal government to inject an additional $2 billion over four years – matched by the states and territories, and topped up by other sources – to accelerate and scale up energy upgrades for low-income housing."

This would keep homes at a comfortable temperature, curb energy hardship, reduce emissions and help safeguard homes from the impacts of climate change, Dr Goldie said.

Upgrading all households in the lowest 20 per cent of Australian incomes would help would produce energy bill savings of $40 million in some electorates, particularly those in SA.

"The government has a once-in-a-generation opportunity in this budget to reduce energy poverty, improve people's health and tackle the climate crisis," Dr Goldie said.

Independent MP Allegra Spender has also backed similar measures for apartment dwellers more broadly, noting many were at particular disadvantage because they could not install solar panels.

Her suggestions include establishing a national advisory service to help apartment owners navigate solar power installation and incentivising landlords to invest in energy efficient appliances.

The federal government has committed more than $1 billion to re-industrialising the Australian economy for renewables manufacturing as the nation transitions toward net-zero emissions.

Dr Goldie said a national fund for home energy upgrades could complement its strategy.

"A commensurate funding package to support households and communities to participate in and benefit from the transition is critical to build social licence and ensure no-one is left behind," she said.

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AAP