Victorian Households Energy Report

Transcription

1 Victorian Households Energy Report

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3 Executive summary The Victorian Households Energy Report summarises the key findings from Sustainability Victoria s research on the energy efficiency of existing houses. The report focuses on three areas: retrofitting or upgrading older homes to improve the efficiency of the building shell, lighting and key appliances building energy efficiency into renovations choosing energy efficient appliances when buying new or replacing old appliances. Homeowners, renters, builders and renovators can use this report to make lasting energy efficiency changes built on credible evidence based information. Residential buildings account for 21% of Victoria s energy use. Most Victorian homes (86%) were built before energy efficiency regulations were first introduced in 2005 and have a very low thermal efficiency. The OGA study reveals that the average House Energy Rating (HER) for houses constructed in Victoria before 2005 was 1.81stars. At the same time, Victoria is facing increasing energy prices with an average annual bill for energy used of over $2,800 a year. There is huge potential to upgrade the energy efficiency of Victoria s housing stock; future-proofing our homes against rising energy costs while improving comfort levels. An energy efficient household can save about 40% of an average household s energy costs. Until recently we did not fully understand the potential for upgrading the energy efficiency of these houses to reduce energy consumption. To address this gap, Sustainability Victoria began researching the energy efficiency of our existing houses, the extent to which their level of energy efficiency can be practically upgraded, and the cost and cost-effectiveness of doing this. Key findings from our research show that there are cost effective energy efficiency measures that are being overlooked by households and potential energy savings missed. Renovations also offer significant potential to improve a house s energy efficiency in a cost effective manner. Renovators often miss out on opportunities to build energy efficient measures into their renovations, losing out on long-term cost savings. Choosing energy efficient appliances when replacing old, inefficient appliances is another way to increase energy efficiency in the home. The average Victorian home could save around $400 a year by using energy efficient appliances over standard models. An energy efficient appliance can reduce your energy use and save on bills without compromising the product s benefits and features. Our lifestyle choices, actions and behaviours inside our homes also affect energy usage. By targeting the biggest sources of energy, using appliances more efficiently and turning off lights, households can become more energy efficient, leading to real energy and cost savings. Our research shows that an efficient household can save around 40% of an average household s energy costs The report shows that energy efficiency retrofit measures can potentially deliver significant energy savings in Victorian homes built before Upgrading the efficiency of the building shell can substantially increase thermal comfort and reduce household energy consumption, leading to significant energy savings. Further savings can be achieved by upgrading the existing lighting and appliances to high efficiency models. iii

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5 Table of contents Executive summary iii Introduction 1 The role of Sustainability Victoria 1 Upgrading the energy efficiency of Victoria s housing stock 1 About this report 1 Background 1 Energy efficiency standards for residential building in Victoria 1 Residential energy use across Victoria 2 Retrofitting our homes to improve their efficiency 5 Researching household energy 5 The Victorian Household Energy Report Technical Series 5 The On-Ground Assessment study 6 The Energy Efficiency Retrofit Trials 11 Victorian Residential End-Use Metering Project 13 Building energy efficiency into renovations 13 The Victorian renovation market 13 Energy efficiency regulations for renovations 14 Investing in actions to save money when renovating 14 Key opportunities in renovations 14 Choosing energy efficient appliances 16 Energy rating labels 16 The real cost of your appliances 17 Home energy efficiency checklists 20 Target your biggest sources of energy 20 Use your appliances more efficiently 21 Turn off your lights 22 v

6 Introduction The role of Sustainability Victoria Sustainability Victoria is a Victorian Government agency delivering programs on integrated waste management and resource efficiency. We are a leading provider of energy efficiency information for the household sector. Our role is to help Victorians understand where they use energy and help them take action to reduce their energy consumption around the home to ease their costs of living. We do this by providing credible, evidence-based information to help them: manage and improve their energy use at home purchase energy efficient appliances and products incorporate energy efficiency improvements into home retrofit upgrades and renovations. We conduct research to underpin and ensure our information is grounded in a solid evidence base. Our in-depth technical research studies investigate information gaps in the market and use real data from real homes located across Victoria. Upgrading the energy efficiency of Victoria s housing stock Most Victorian homes were built before energy efficiency regulations for homes/residential buildings were first introduced in 1991 and so they have a very low thermal efficiency. There is huge potential to upgrade the energy efficiency of Victoria s housing stock and future-proof our homes against rising energy costs. Retrofitting, renovations and replacing old, inefficient appliances all provide opportunities to make energy efficient choices that can benefit our homes, our finances and our environment. About this report The Victorian Households Energy Report summarises our key findings from research on the energy efficiency of existing houses. Homeowners, renters, builders and renovators can use this report to make lasting energy efficiency changes built on evidence based information. In this report, we focus on three key areas: retrofitting or upgrading older homes to improve the efficiency of the building shell, lighting and key appliances building energy efficiency into renovations, and choosing energy efficient appliances when buying new or replacing old appliances. Background Energy prices in Victoria have more than doubled in the past ten years and are set to rise even more. 1 Implementing energy efficiency measures in the home can deliver significant energy savings, safeguarding homes from rising energy prices, now and in the long term. Our research shows that an energy efficient household living in a house built before 2005 can save around 40% of an average household s energy costs. Victorians living in older, less energy efficient homes have even greater potential to make lasting changes to save money and improve the comfort of their homes. Energy efficiency standards for residential building in Victoria Minimum energy efficiency standards for new houses in Victoria were first introduced in 1991 in the form of mandatory minimum insulation requirements. This was enhanced in 2005 with the introduction of the requirement for a minimum 5 Star Standard in energy efficiency based on a House Energy Rating (HER). This was strengthened and increased to a minimum 6 Star rating in The rating applies to the building envelope: the roof, walls, floor, and windows. Houses with higher HERs are more naturally comfortable in winter and summer, and therefore easier and cheaper to heat and cool. This existing housing stock represents the largest potential for energy saving and greenhouse abatement in the residential sector. Victorian houses built before the introduction of the 5 Star standard in 2005: Pre 2005: 1.9 million Victorian houses (86%) Post 2005: 0.3 million Victorian houses (14%) Figures as at Australian Bureau of Statistics, Consumer Price Index, ABS no , Sep 2013, < 1

7 Residential energy use across Victoria Victoria s 2.2 million households account for 21% of the state s energy use. In recent years growth in overall total residential energy use is flat declines in individual household electricity usage have been offset by an increased use of natural gas, and the growth in the number of households. In Victoria, the amount of residential energy provided by natural gas and solar has increased, while use of electricity has decreased slightly. This reduced electricity use is due to the increased uptake of energy efficiency programs, the impact of appliance minimum efficiency standards and labelling, and consumer response to rapidly rising electricity prices. Figure 2: Breakdown of the average gas bill in Victorian households 27.9% WATER HEATING 2.9% COOKING 69.2% HEATING Rooftop solar photovoltaic (PV) generation continues to grow in popularity with almost 10% of households installing solar PVs. Energy spending in the home Figure 3: Breakdown of the average electricity bill in Victorian households 3 The average Victorian household spends around $2,800 on their energy bills every year. Figure 1 shows where an average Victorian household spends their energy dollars. Figure 1: Average energy costs in Victorian households 2 10% 8% 4% APPLIANCES ENTERTAINMENT 11% 16% LIGHTING HOT WATER COOKING COOLING $ 2% HEATING WHITEGOODS 32% 17% 3.7% 8.1% 10.3% HE EQUIPMENT 4.6% COOKING 3.6% CLOTHES DRYER 3.6% MISC ELEC 15.5% LIGHTING IT & COMMS OTHER ELECTRONICS $ HEATING 11.3% 2.4% COOLING WATER HEATING 15.9% WET APPLIANCES 2.6% REFRIGERATION 18.4% Home heating and water heating are the dominant areas of energy use for households. But because these areas are mostly powered by gas which is cheaper than electricity, their contribution to the overall household energy spend is less than their contribution to overall household energy use. Figure 2 shows the breakdown of the average household gas bill of $1000 and Figure 3 shows the breakdown of the average annual electricity bill of $ Whitegoods: fridges & freezers, dishwasher, washing machine & clothes dryer. Entertainment home entertainment equipment (TVs, DVDs, stereos, game consoles etc), computers & computer peripherals, and communications equipment. Appliances External power supplies, garage door openers, microwave ovens and miscellaneous electrical equipment such as small cooking and small household appliances, tools and portable electric heaters. 3 HE Equipment home entertainment equipment, including TVs, DVDs, hard disk recorders, stereos, home theatre systems, game consoles, etc. Misc Elec small kitchen and household appliances, electric tools, portable electric heater. IT & Comms Equipment IT Equipment (computers, computer monitors, printers, scanners, external hard drives, etc) and communication equipment (phone base stations and answering machines). Other home electronics external power supplies, microwave ovens and garage door openers. Wet appliances washing machines and dishwashers. 2

8 Trends in energy use Energy use is strongly influenced by climate. In Victoria, we experience cooler conditions for more of the year than warmer conditions. We generally have higher energy bills in winter because we: run heaters for longer light our homes for longer due to the shorter days use more energy to heat water due to colder air and water temperatures. Gas use is substantially higher in winter due to its use for heating and to a lesser extent water heating. Winter electricity use is also higher than summer electricity use. 4 Other household features that can increase energy use include: more people, higher income, larger buildings, lack of insulation, and older and less efficient appliances. Hot and cold days in metropolitan Melbourne 35 days 30ºc or above 159 days 18ºc or below We run air conditioners on hot days, but not for as many days as we heat our homes in winter. Source: Bureau of Meteorology Average household electricity and gas use General electricity use (excluding off-peak electricity use) per month: 386 kwh Dec Apr 414 kwh May Nov Off-peak household electricity use per month: 272 kwh Dec Apr 354 kwh May Nov Gas use per month: 2,702 MJ Dec Apr 6,975 MJ May Nov 4 Department of Human Services, Victorian Utility Consumption Household Survey 2007,10 April 2008, < 3

9 Recent trends in energy pricing In Victoria, indexed figures (adjusted for inflation) show a 68% increase in electricity pricing in Melbourne between and Much of this increase occurred between , and when the price index rose by 55%. 5 The picture for gas is similar with a 42% increase in gas prices between and Average annual bill for household energy use in 2007 and $1, $2,800 Flexible electricity pricing Victorian electricity customers with a remotely-read smart meter can now choose between flat rates and new flexible electricity pricing. Under a flexible pricing tariff, the amount consumers are charged for electricity depends on the time of day they use it. Higher rates apply at peak times and lower rates during shoulder 6 and off-peak times, making it possible to pay less for power by using electricity outside of peak hours. But even though changing the times appliances are run setting your dishwasher or washing machine to run at night during off-peak hours, for example will save money on a flexible pricing system, it will not change how much energy you use. Flexible pricing has been introduced to provide consumers with more choice and control over their power bill. More broadly, flexible pricing provides an incentive to use power at times when there is less demand for electricity, reducing the need for expensive energy infrastructure upgrades a cost that is passed on to all consumers. More information about flexible pricing and obtaining the best electricity tariff is available at the Switch On website: $973 $700 $1,800 $1,000 Source: 2007 DHS Utility Consumption Survey, and 2013 is based on an estimate by Sustainability Victoria A major driver of rising retail electricity prices in recent times has been increasing network (poles and wires) costs due to consumer demand for electricity at busy times, called peak electricity. The electricity system must have enough generation, transmission and distribution capacity to meet the demand for electricity on high peak demand days, which usually occur on very hot summer days during the working week. 5 Australian Energy Regulator, AER annual report on the performance of the retail energy market , 26 November 2013, < 6 Shoulder times sit between peak and off-peak times. 4

10 Retrofitting our homes to improve their efficiency Researching household energy Our research demonstrates that undertaking energy efficiency retrofit measures can deliver significant energy savings in most Victorian homes built before Upgrading the efficiency of the building shell can substantially increase thermal comfort and reduce household energy consumption, leading to significant energy savings. Further savings can be achieved by upgrading the existing lighting and appliances to high efficiency models. The Victorian Household Energy Report Technical Series Sustainability Victoria has carried out a series of technical research studies to understand how to improve the energy efficiency of houses built in Victoria before These studies use data collected from Victorian homes and look at the energy efficiency of existing houses, the extent to which their level of energy efficiency can be practically upgraded, and the cost and cost effectiveness of doing this. This methodology is unique as most of the existing market analysis is based on self-reported statistical data and modelled data. Sustainability Victoria will publish a collection of reports and factsheets to showcase and encapsulate the key findings from this research throughout The technical research on household energy comes from three main studies, as shown in Table 1. Some of these studies are still in progress and more information will be made available throughout Table 1: Sustainability Victoria household energy studies Study On Ground Assessment study Energy Efficiency Retrofit Trials Victorian Residential End-Use Metering Project Aim To use data collected from actual houses to: assess their current energy efficiency status assess the practical potential to upgrade the building shell of existing house assess the practical potential to upgrade lighting and appliances undertake a cost-benefit analysis of practical energy efficiency upgrades and measures to the house (shell), lighting and appliances. To use data collected from actual retrofits to: assess the practical issues associated with undertaking retrofit upgrades assess the qualitative and quantitative impact of the upgrades trial methodologies for assessing the quantitative impact of the upgrades. To better understand: how people actually use electricity in their homes the energy consumption of different appliances and equipment timing of energy use (load profile) of different appliances equipment usage (hours/cycles) of key appliances use of key appliances in different standby modes. For information on our technical series and other programs, visit our website: 5

11 The On-Ground Assessment study The On-Ground Assessment (OGA) study collected data from a reasonably representative sample of 60 existing (pre-2005) stand alone Victorian houses. The data was analysed to determine the average energy efficiency of the building shells of existing Victorian houses, as measured by the House Energy Rating (HER), and to assess the extent to which this level of energy efficiency could be increased through a range of common building shell upgrades, including insulation, draught sealing, double-glazing and shading. The data was also analysed to investigate the costs and benefits (energy saving, dollar and greenhouse gas savings) of applying those building shell upgrades and a range of lighting and appliance upgrades to the houses. This allowed us to compare the costeffectiveness of different upgrade measures in terms of which upgrade measures give the biggest energy saving bang for your buck. House Energy Rating of OGA study houses The OGA study found that the average HER of the 60 houses was 1.81 Stars, significantly lower than the current 6 Star minimum efficiency standard for houses built after As shown in Figure 4, the average HER of houses in the study increased according to the age of the house, with a significant increase evident from the 1990s, corresponding to the introduction of mandatory insulation requirements in While there is great variation among the houses, the average HER of houses constructed prior to 1990 was 1.57 Stars and the average HER of the houses constructed between 1990 and 2005 was 3.14 Stars. In addition to the mandatory insulation requirements introduced in 1991, certain trends in the construction of houses are also likely to have contributed to the observed increase in efficiency, including the shift to concrete slab-on-ground construction for floors, the elimination of wall vents from most houses constructed since the 1990s and the impact of wear and tear on older houses. OGA study retrofit upgrades After investigating the HER of houses, the study modelled the impact of a package of 21 common energy efficiency retrofit upgrades on the 60 houses included in the study. These measures could easily be implemented across the Victorian housing stock. Retrofit measures included 11 building shell upgrades, one lighting upgrade and nine appliance upgrades as represented in Table 2. What is retrofitting? Retrofitting can be divided into three categories: simple building shell upgrades including insulation, draught sealing and double glazing lighting upgrades appliance upgrades. Retrofitting is different to renovation in that the size of the house is not changed and there is no re-modelling of the internal floor space. Figure 4: House Energy Rating and construction decade of the 60 OGA study houses HOUSE ENERGY RATING The average House Energy Rating of Victorian houses constructed before 2005 is 1.81Stars

12 Table 2: Retrofit upgrade measures modelled in the OGA study 7 8 Building shell upgrades Ceiling insulation (difficult) 7 Ceiling insulation (easy) 8 Ceiling insulation top-up Double glazing Drapes and pelmets Draught sealing External shading Reducing sub-floor ventilation Sealing wall cavities Underfloor insulation Wall insulation Appliance and lighting upgrades Lighting Low flow shower rose Clothes washer Water heater high efficiency gas Heating Refrigerator Television Dishwasher Clothes dryer heat pump Cooling Overall savings of implementing a complete package of retrofit measures We estimated that by applying all possible and practical energy efficiency upgrade measures (building shell, lighting and appliance upgrades) it would be possible for an average pre-2005 Victorian house to save on average each year: 35,800 MJ of energy $990 on energy bills 3.4 Tonnes of greenhouse gases. The average cost of all upgrades was around $15,560 if drapes and pelmets were used and around $25,670 if double glazing was used. The total energy saving potential from all measures modelled in this study was 45.2%; 50.5% of total gas use and 28.8% of total electricity use. Both the overall energy saving potential and the gas saving potential were dominated by the heating and cooling measures. In contrast, the electricity saving potential was dominated by the appliance upgrade measures (see Figure 5). We began by modelling the impact of building shell upgrades on the HER of the houses. We then analysed the costs and benefits including the average payback period of applying the various retrofit upgrade measures. Figure 5: Estimated energy saving potential of OGA study houses Each of the retrofit measures were applied in a specific order and so the impact of some of the later measures may be less than if they were implemented earlier. It s important to note that all cost and payback figures were arrived at using commercial rates some measures may be more cost effective if implemented as a DIY project. While the results of our study are based on modelling for the 60 selected houses, they are representative of the wider Victorian housing stock. We believe they give a good indication of the energy saving potential and the economics of applying energy efficiency upgrades across the wider stock of existing (pre-2005) Victorian houses. 7 Difficult is considered as restricted and/or confined access 8 Easy is considered as roomy or open access 7

13 Building shell upgrades In this section we discuss the impact of a package of 11 building shell upgrades applied in a specific order on the HER and the cost-benefit analysis of retrofitting the building shell. Our research showed that if all building upgrade measures were applied the average HER of the houses could be increased from 1.81 Stars to 5.05 Stars, an increase of 3.24 Stars (Figure 6). Wall insulation (0.97 Star increase), draught sealing (0.69 Stars), double glazing (0.63 Stars) and drapes and pelmets (0.58 Stars) were the building shell upgrade measures with the biggest impact on increasing the average HER of the OGA study houses. These measures all had quite a large impact when implemented and also had a high level of applicability across the stock of OGA study houses (i.e. the measure could be applied to most houses). Ceiling insulation measures had a large impact when implemented but had a much lower level of applicability since most houses already have a certain level of ceiling insulation, giving them a lower impact on the average HER of the houses. It is worth noting that if a house has no ceiling insulation then adding ceiling insulation is the most effective base measure to improve the thermal efficiency of any home. Figure 6: Average HER of OGA study houses as building shell upgrades progressively applied in specified order Cost-benefit analysis of retrofitting the building shell Across the stock of 60 OGA study houses we estimated that applying all relevant building shell upgrade measures could achieve annual average savings of: 22,600 MJ of energy (dominated by gas) $430 on energy bills 1.4 Tonnes of greenhouse gases. The average cost of all building shell upgrades was around $9,670 if drapes and pelmets were used and $19,780 if double glazing was used. Draught sealing, wall insulation, double glazing and drapes and pelmets provided the largest overall savings across the stock of houses while draught sealing and insulating an uninsulated ceiling were the most cost-effective upgrade measures modelled. Table 3 summarises the average HER increases, costs and energy savings for the building shell upgrade measures with the greatest impact on the HER. 9 Average HER increase with all building shell upgrades Pre-1990 houses: 1.57Stars to 5.00Stars (an increase of 3.43 Stars) Post-1990 houses: 3.14Stars to 5.37Stars (an increase of 2.23 Stars) 9 In the OGA study we modelled replacing existing single-glazed windows with new double-glazed windows. This is quite expensive due to the cost of removing the existing windows and installing full new window units, and hence the long payback period. Cheaper options are available with lower paybacks, including secondary glazing (adding an extra pane of glass to an existing window) and heat shrink films which can create a double-glazing effect. If new windows are installed in a new home or as part of a renovation, of if existing windows need to be replaced, then double-glazing is a much more attractive option. In this case the increased cost is only the differential cost between a single and doubleglazed window unit, and there is no additional removal and installation cost. 8

14 Table 3: Average costs and energy savings for modelled building shell upgrades with the greatest HER when implemented. Av. energy saving (MJ/Yr) Measure Star increase Gas Elec. Total Av. cost ($) Av. saving ($/Yr) Payback (Yrs) Draught sealing , ,167 $1,037 $ Ceiling insulation (easy) , ,487 $1,130 $ Ceiling insulation (difficult) , ,095 $1,119 $ Wall insulation , ,697 $4,167 $ Drapes & pelmets , ,263 $2,036 $ Double glazing , ,344 $12,145 $ Note: Upgrade measures modelled, applied in a specific order and costed at commercial rates. Changing the order could affect the outcomes. Upgrading lighting and appliances Applying all relevant lighting and appliance upgrade measures to the 60 OGA study houses was estimated to save on average each year: 13,200 MJ of energy (more evenly split between electricity and gas) $560 on energy (and water 10 ) bills 2.0 Tonnes of greenhouse gases. The average cost of these upgrades was around $5,880 making the lighting and appliance upgrades more cost effective overall than the building shell upgrades. The largest average savings were provided by the heating, low flow shower rose, water heating, lighting and refrigerator upgrades while low flow shower rose, lighting, clothes washer, water heating and heating upgrades were the most cost effective upgrade measures. Table 4 summarises the average costs and energy savings when implemented for the lighting and various appliance upgrades modelled for the OGA study houses. 10 Energy efficient upgrades such as installing low flow shower roses and a high efficient washing machine result in both energy and water savings. 9

15 Table 4: Average costs and energy savings for modelled lighting and appliance upgrades when implemented Av. energy saving (MJ/Yr) Measure Gas Elec. Total Av. cost ($) Av. saving ($/Yr) Payback (Yrs) LF shower rose* 2, ,473 $86 $ Lighting - 1,288 1,288 $574 $ Clothes washer* $347 $ Water heater high eff. gas 788 1,721 2,509 $818 $ Heating 7, ,067 $1,388 $ Refrigerator - 1,182 1,182 $1,086 $ TV $546 $ Dishwasher* $596 $ Clothes dryer heat pump $1,617 $ Cooling $1,162 $ * Bill saving ($/Yr) includes both the energy saving and the water saving. While upgrades to appliances and lighting are often part of retrofitting, consumers frequently buy new appliances as a one-off purchase. For more information on choosing energy efficient lighting, heating and cooling, water heaters and other common appliances see the chapter on Choosing energy efficient appliances. Using data from the OGA study This study presents average energy savings and payback periods modelled for the 60 OGA study houses. We found a very wide diversity in the energy savings (and consequently paybacks) that could be achieved for any given energy efficiency upgrade measure. The households used their appliances and lighting differently depending on the number of occupants, size of the house and appliance settings. As energy prices seem likely to continue to rise in real terms, the cost-effectiveness of many of the energy efficiency upgrade measures modelled in this report are likely to improve. It is also likely that the cost of some of the upgrades especially LED lighting, high efficiency televisions and heat pump clothes dryers will continue to decrease in real terms, improving the cost-effectiveness of upgrading with these measures. There may also be some areas where future market development and increased competition could result in lower upgrade costs, for example as the market for pump in cavity wall insulation matures. When using results from the OGA study to guide decisions about retrofit upgrades, remember to carefully assess your own energy usage to identify the most appropriate and cost effective upgrade options for your home. If necessary, seek expert advice. Further retrofit savings The energy efficiency upgrade measures assessed as part of the OGA study do not cover all possible measures. There are a range of additional measures not modelled in this study that could yield additional energy savings: Installing rooftop photovoltaic (PV) panels to generate electricity could give electricity bill savings of 12% to 24% for the average household as well as feeding electricity into the grid. Replacing old existing gas heating ductwork with high efficiency new ductwork could give additional savings of up to 25% of heating energy use in houses with gas ducted heating. Installing Standby Power Controllers (SPCs) attached to nests of home entertainment equipment and computer equipment can automatically reduce standby power use, which accounts for around 10% of overall electricity consumption. Remediation of ceiling insulation could give further savings on heating and cooling energy use by ensuring even coverage, especially where downlights have been used as the main form of lighting. Installing solar air heating devices can provide supplementary heating. Installing grey water heat recovery systems can recover heat from the shower drain. Voltage optimisation devices connected to a house s electrical switchboard may be able to achieve further electricity savings. In addition, better energy use practices related to behaviour change could potentially save a further 10% to 20% in energy usage. 10

16 The Energy Efficiency Retrofit Trials To build on the OGA study data, Sustainability Victoria is carrying out a series of retrofit trials to determine the actual impact of specific retrofit measures on energy consumption and energy costs (as opposed to the modelled impact in the OGA study). The Energy Efficiency Retrofit Trials also investigate the issues faced by householders when retrofitting and their perception of household comfort levels. The retrofit trials include: 12 volt downlight replacement (the Halogen Downlight Retrofit Trial completed) comprehensive air sealing (the Draught Sealing Retrofit Trial completed) pump-in cavity wall insulation retrofit double glazing window film high efficiency swimming pool pump high efficiency gas heating ductwork high efficiency gas ducted heater solar air heater heat pump clothes dryer Retrofit Trial 1: Halogen Downlight Retrofit Trial (12 volt downlight replacement) Lighting makes up about 11% of the average Victorian household s energy bill each year. In the OGA study houses over half (56%) of lights installed in homes were found to be inefficient incandescent bulbs or 12 volt halogen downlights. These lights are most commonly used in living areas and operate for longer hours than lights in non-living and external areas. Low voltage halogen downlights became fairly common in houses constructed after the mid-1990s and there are now around 23 million 12-volt halogen downlights in Victorian homes. It s a common misconception that these low voltage lamps are also low energy. Low voltage halogen downlights are a form of spotlight and must be installed in large numbers to provide uniform lighting levels typically three to four for every standard light globe. This can lead to fairly high power consumption when used as the main form of lighting. The Halogen Downlight Retrofit Trial achieved average lighting energy savings of 71% by replacing 12 volt halogen downlight lamps with suitable compact fluorescent (CFL) or LED lamps. At an average saving of $9.15 per lamp over a year this is a worthwhile saving. One trial participant had eighteen 12-volt halogen downlights replaced with 12 volt CFL downlights. It cost $ and saved kwh and $ over the year on their energy bill. This means the participant will pay for the lighting retrofit in less than two years. Another participant replaced 15 halogen downlights with LED downlights at a cost of $1, While the upfront costs seem high, they reduced their annual energy consumption by 1,457.4 kwh and their energy bill by $ over the year giving them a three-year payback. The cost of LED downlight lamps has come down since the trial, and should keep dropping. The data gives a clear before and after picture of the significant energy and cost-saving potential of replacing halogen downlights with low energy downlights (see Figure 7). Figure 7: Average daily load profile before and after retrofits WATTS LIGHTING ENERGY USE Halogen Downlights CFL/LED Downlights 0 0:30 0:40 0:50 1:00 1:10 1:20 1:30 1:40 1:50 2:00 2:10 2:20 2:30 2:40 2:50 3:00 3:10 3:20 3:30 3:40 3:50 4:00 4:10 4:20 4:30 4:40 4:50 5:00 5:10 5:20 5:30 5:40 5:50 6:00 6:10 6:20 6:30 6:40 6:50 7:00 7:10 7:20 7:30 7:40 7:50 8:00 8:10 8:20 8:30 8:40 8:50 9:00 9:10 9:20 9:30 9:40 10:00 9:50 10:10 10:20 10:30 10:40 10:50 11:00 11:10 11:20 11:30 11:40 11:50 12:00 12:10 12:20 12:30 12:40 12:50 13:00 13:10 13:20 13:30 13:40 13:50 14:00 14:10 14:20 14:30 14:40 14:50 15:00 15:10 15:20 15:30 15:40 15:50 16:00 16:10 16:20 16:30 16:40 16:50 17:00 17:10 17:20 17:30 17:40 17:50 18:00 18:10 18:20 18:30 18:40 18:50 19:00 19:10 19:20 19:30 19:40 19:50 20:00 20:10 20:20 20:30 20:40 20:50 21:00 21:10 21:20 21:30 21:40 21:50 22:00 22:10 22:20 22:30 22:40 22:50 23:00 23:10 23:20 23:30 23:40 23:50 12 am 6 am 12 pm 6 pm 12 am LED lamps are now available to replace low voltage halogen lamps. While initially quite expensive, the cost is declining, making them a more cost effective replacement. Using fluorescent lamps or LEDs can reduce energy consumption for lighting by over 70%. There are approximately 23 75% LESS ENERGY 12V HALOGEN 12V HALOGEN 12V LED HALOGEN 12V LED 12V LED 75% LESS ENERGY Million 75% LESS ENERGY 12-volt halogen downlights in Victorian homes 11

17 Retrofit Trial 2: Draught Sealing Retrofit Trial (comprehensive air sealing) One reason for the low level of energy efficiency of the existing housing stock is the high level of air leakage. The natural average air leakage rate for the OGA study houses was found to be 1.90 air changes per hour (ACH) with houses constructed prior to 1990 having a slightly higher average natural air leakage rate (2.02 ACH) and houses constructed between 1990 and 2005 had a considerably lower natural air leakage rate (1.20 ACH). Sustainability Victoria s OGA data suggests that draughts account for around 25% of winter heat loss from these houses due to warm air escaping from the houses and around 12% of summer heat gains due to hot air infiltrating into the houses during the day. Draughts are generally a bigger issue in winter than in summer, both in terms of comfort and energy usage they make houses harder to heat in winter and reduce occupant comfort (Figure 8). Figure 8: Sources of draughts in Victorian houses FIND & FIX GAPS air vents gaps between & around windows vented skylight exhaust fans gaps around doors chimney evaporative cooling outlets gaps between walls or ceilings & cornices fixed air conditioners & heaters joints between wall materials According to our research, the top five draught sealing measures in terms of effectiveness at reducing the total air leakage rate across the 16 houses are: general caulking to seal cracks and gaps 11 (26.1% reduction of air leakage rate) sealing evaporative cooler outlets (20.0%) sealing exhaust fans and vents (15.5%) sealing external doors (11.9%) sealing wall vents (6.7%). Collectively these measures were responsible for reducing total air leakage by around 80% and were equivalent to around 76% of the total draught sealing costs. By undertaking all of the above measures a Victorian household could save up to $160 of the annual energy bill, for an average cost of $1,000. After draught sealing, householders perceived an increase in thermal comfort, a decrease in the level of difficulty heating the houses and a substantial drop in draughts (see Figure 9). Figure 9: Changes in householder perceptions before and after implementing draught sealing measures gaps between walls or floors & skirting boards gaps between floorboards gaps where pipes penetrate walls The trial retrofitted a package of draught sealing measures in 16 Victorian houses over the main winter heating season (May to August). The 16 houses were progressively draught sealed and blower door tests were conducted to measure the air leakage rate of the houses after each group of draught sealing measures had been applied. The natural air leakage rate of the houses which participated in the trial was reduced from an average of 1.80 ACH (or 762 m3/hr) to 0.83 ACH (342 m3/hr); a reduction of around 54% for an average cost of draught sealing of $1,001, based on commercial rates. DIY draught sealing In the trial, all draught sealing measures were costed at commercial rates. Undertaking some of these measures as a DIY activity could result in lower costs for the same benefits. Conducting a blower door test to check air leakage is not an option for most householders but there are other ways to identify draughts around the house. For more information about identifying draughts and how to remediate them, visit the Sustainability Victoria website: 11 This includes sealing around skirting boards, floor boards, door and window frames, architraves, cornices, inside and around cupboards, and joins between building elements. 12

18 Victorian Residential End-Use Metering Project While much is known about the average cost of Victorian energy bills, less is known about how individual households use energy. Sustainability Victoria s Victorian Residential End-Use Metering Project is researching the daily energy use of a range of common electrical appliances. The results of this study will be made available later in 2014 as part of our Victorian Household Energy Report Technical Series. Figure 11 shows the average breakdown of electricity use during the day for one of the houses involved in the study. This illustrates the very peaky nature of residential electricity use, with most households having a pronounced usage peak in the morning and evening. Figure 11 Daily electricity in one Victoria houshold (5 May 19 June 2012) Building energy efficiency into renovations In Victoria, we spend over two billion dollars a year renovating our homes. These renovations offer significant potential to improve the energy efficiency of existing homes. A renovation is the most cost effective time to improve a building s energy efficiency and decisions made during the planning phase have a long-term impact on energy bills. In 2013, we researched the Victorian renovation market to better understand the current state of the market and the potential for energy efficiency improvements in existing buildings. We also conducted market research with Victorian renovators, identifying the key energy efficiency areas for householders to focus on when renovating their homes. This research underpins Sustainability Victoria s Smarter Renovations program. The Victorian renovation market The most popular reasons for renovating in Victoria are to modernise the home or add more floor space. The most frequently added rooms are bedrooms and bathrooms, with the average renovation adding 4.0 rooms 12 Across Victoria, a major renovation adds an average of 57m² of floor space to home size, creating more areas to heat and cool leading to higher energy bills. The energy cost of running a larger home can be offset by incorporating energy efficiency measures into the renovation. 12 BIS Shrapnel, The home improvements market in Australia 2010 VOLUME 1: Additions Ground & Upper Floor, 2011, BIS Shrapnel Pty Limited, Sydney, NSW. 13

19 Energy efficiency regulations for renovations Major renovations: An extension or an upper floor addition to the existing home. Minor renovations: A renovation under the existing roofline of a building, involving no structural change. For example, kitchen and bathrooms updates. A major renovation will often include changes to the interior and exterior of the existing home and requires an application for a building permit from council 13. Over 2% of Victorian homes undertake major renovations each year. Minor renovations do not typically require a building permit and are not subject to energy efficiency building regulations. Each year 20% of Victorian homes undertake minor renovations. Because most Victorian renovations are minor renovations which are not required to be checked by local council authorities, many renovators lose the potential opportunity to build in long-term cost savings and improve the comfort of their homes during their renovation. Victorian renovations in 2010 Major: 24,900 ground floor extensions (average cost $42,500) Minor: 330,000 16,300 upper floor additions (average cost $74,600) kitchen and bathroom renovations (average cost $6,500 and $4,900 respectively) Investing in actions to save money when renovating Our market research into the renovation market shows that 89% of Victorian renovators believe that energy efficiency is important but most fail to take steps to put that belief into practice. 14 Potential long term cost savings are lost in the gap between words and action. It seems that while we want to save money on energy in the long run, we get stuck when it comes to investing in actions that would enable us to do so. Although survey respondents cited saving money on energy costs as the primary reason to be energy efficient, the cost of installing or implementing some items was also the barrier to their adoption. Most renovators have a balance point between spending and saving that often leads to the installation of cheaper, less efficient items as the budget becomes tighter towards the end of the renovation. Renovators may also lack the information needed to justify the initial expense. Some energy efficient options reap long term advantages that compensate for the initial outlay. Renovators who spend time researching energy efficiency opportunities in the planning stages of a renovation are more likely to implement them and will save money on their post-renovation energy bills. Key opportunities in renovations Our research analysed building practices in Victorian houses and found that there are many simple, easy and cost-effective energy efficiency opportunities that are often missed in Victorian renovations. The top five opportunities for renovators to reduce their ongoing energy use and make their homes more comfortable are: adding insulation to ceilings, walls and under floors sealing and ventilating the home to create a comfortable indoor environment choosing energy efficient windows and doors selecting the most efficient lights to suit the room buying energy efficient appliances (heating systems, hot water, PV panels). Table 5 highlights the commonly missed opportunities for energy efficiency in renovations. Source: BIS Shrapnel, The home improvements market in Australia 2010 VOLUME 1: Additions Ground & Upper Floor, 2011, BIS Shrapnel Pty Limited, Sydney, NSW. 13 If the renovation will not alter more than 50% of the total volume of the original building, then the original building will not need any energy efficiency improvements; or if a renovation is conducted under the existing roofline of a building, (i.e. no change to windows or doors or extra rooms added) there is no regulatory requirement to meet energy efficiency standards. This means many renovations are occurring without any improvement to the thermal performance of the existing home. 14 K Couper & M Ferguson, Sustainability Victoria Renovations Market Research Report, 2013, Colmar Brunton, Melbourne,VIC. 14

20 Table 5: Percentage of missed opportunities for different energy efficiency strategies when renovating Category Missed opportunities Percentage of renovators missing opportunities (%) Insulation No insulation fitted to suspended timber floors 72 No insulation retrofitted to existing external walls 60 Incomplete ceiling insulation 30 No insulation under roof tiles 30 Draught proofing Door seals missing 30 No dampers to exhaust fans 10 No chimney dampers fitted 5 Windows Areas of unprotected westerly glazing 20 Inefficient new windows 15 Lighting Inefficient lighting choices 50 Sustainability Victoria s new Smarter Renovations program helps Victorian renovators identify key areas for energy efficiency improvements when renovating. The Smarter Renovations Planner The Smarter Renovations Planner is an online tool that helps Victorian renovators to customise an interactive checklist of energy efficiency measures to plan for the following five key areas: ceiling, wall and floor insulation draught proofing window upgrades lighting upgrades appliance upgrades (heating and cooling systems, hot water, PV panels). The tool provides the cost-benefit analysis for each measure and helps renovators see the benefits of including energy efficiency in their renovation. Using the planner could save renovators up to 60 70% on their energy costs per year by implementing energy efficiency measures into their renovation. The Smarter Renovations Planner will be available from July To find out more visit renovations Assumed savings based on all energy efficiency measures applied to whole house and extension, compared to a baseline renovation, which only meets minimum energy efficiency standards. For more details see the Renovation Cost-Benefit Analysis Report prepared by Energy Partners for Sustainability Victoria in

21 Choosing energy efficient appliances The average Victorian home has up to 67 plug-in appliances and this number is set to increase. Over a one-year period (March 2013 to February 2014), Victorians bought over 580,000 whitegoods (washing machines, dishwashers, fridges and dryers) and over 530,000 televisions from retail stores. 15 We are buying more energy efficient appliances but there is still room to improve our consumer choices. Just over two out of five whitegoods (46.6%% up from 40.8% in February 2013) and three out of four televisions (74%% up from 56.9% in February 2013) purchased in March 2013 were energy efficient. Victorians will spend over $650 million on energy that could have been saved had consumers chosen a more energy efficient option. That s a possible saving of over $400 a year for the average Victorian household. Choosing energy efficient products and appliances when replacing, upgrading or buying new saves money on running costs over the entire life of the product. The more energy efficient appliances you own, the more savings you will make. The average Victorian home could save around $ 400 per year by using energy efficient appliances over standard models Energy rating labels Energy rating labels help consumers compare the energy efficiency of different models of the same appliance type. They are an Australian Government requirement at point of sale for refrigerators and freezers, washing machines, clothes dryers, dishwashers, air conditioners which operate from a single phase power supply, televisions and computer monitors. Gas water heaters and gas room and ducted heaters are also required to carry energy rating labels as part of their certification process. For an electrical appliance to have an energy rating label, they must: be tested to specific Australian standards at a test laboratory meet all performance requirements specified in the standards for refrigerators and freezers, air conditioners, televisions and computer monitors this includes minimum energy efficiency levels be registered with the Australian Government s appliance efficiency regulator. A similar process exists for energy labelled gas appliances which must be tested for energy labelling as part of their certification process. Energy rating labels are regularly reviewed and perform a valuable role in helping consumers purchase more efficient appliances and encouraging manufacturers to develop more energy efficient appliances. What s on a label? Electrical energy rating labels display two key pieces of information (gas labels are very similar) that make it easy to compare appliance running costs: 1. Energy consumption figure The energy consumption figure given in the box in the middle of the label shows the energy consumption of the appliance when tested under standard conditions. For most appliances it provides the estimated annual energy consumption. The lower the energy consumption score, the less electricity used and the cheaper the appliance. 2. Star rating The star rating shown at the top of the label allows a consumer to make a quick comparison between the efficiency of two models. The higher the star rating the more efficient the appliance and the lower the energy used. With every extra star on the energy rating label corresponds to a reduction in energy use by: fridge: 23% washing machine: 27% television: 20% clothes dryer: 15% dishwasher: 30% 15 GfK Retail and Technology Australia, February 2014, Volume, Categories - Washing Machines, Dishwashers, Refrigeration, Clothes Dryers, PTV. 16