The average Australian homeowner could save $6000 in energy bills over 30 years if their home insulation was increased to levels beyond the current national standard, research by infrastructure group Pitt & Sherry has shown.
![In NSW, residents could save $80 million over 30 years, if optimum insulation was installed.](/web/20161016223551im_/http://www.smh.com.au/content/dam/images/1/1/3/l/d/g/image.related.articleLeadwide.620x349.gs0xt3.png/1476612125791.jpg)
The analysis of the energy efficiency of Australian homes found minimum requirements for insulation under current building regulations are not the most cost effective, and could result in nationwide savings of $312 million over 30 years, if increased.
In NSW, residents could save $80 million over 30 years, while Victoria could save up to $91 million over the same period.
Western Australian homeowners could benefit the most, with a saving of around $100 million, whereas Queensland would not record any savings, as its standards are already close to cost-optimal levels.
"There is a huge potential for a very large number of Australian homes, which currently have insufficient insulation," said Tony Westmore, general manager of the Australian Alliance for Energy Productivity, who partnered with Knauf Insulation and the Association of Wall and Ceiling Industries for the research.
![Pink batts from the Rudd government's failed Home Insulation Program, which prompted a royal commission.](/web/20161016223551im_/http://www.smh.com.au/content/dam/images/1/3/9/0/n/o/image.related.articleLeadwide.620x349.gs0xt3.png/1476612125791.jpg)
From the mid-2000s the Australian Greenhouse Office worked with the Australian Building Codes Board to develop a range of building performance standards, including for insulation based on climate zone.
In each climate zone an 'R-value' was set, describing the minimum resistance to heat flow that insulation should provide.
For example in Sydney, R4 was the minimum standard for ceilings, while in Thredbo the minimum was R6.
However the Pitt & Sherry report argues that, on average, ceilings in most Australian homes require a 50 per cent increase in insulation, while walls need up to 35 per cent more, in order to achieve optimum saving potential.
Additional insulation would become even more cost-effective if energy prices increased above the forecast prices used in the study, thereby shortening the payback period.
![Additional insulation would become even more cost-effective if energy prices increased above the forecast prices used in ...](/web/20161016223551im_/http://www.smh.com.au/content/dam/images/1/0/b/j/m/8/image.related.articleLeadwide.620x349.gs0xt3.png/1476612125791.jpg)
"Even retrofitting is cost-effective and pays for itself through savings on energy bills in less than eight years, in almost every case. In a new build it costs around $1000," Mr Westmore said.
"It's crazy that two-thirds of all Australian homes have airconditioning, but a third still don't have insulation."
Mr Westmore said homes that used airconditioning without insulation were "letting money out through their roof" while also accruing a greater cost to the community.
"In the 10 years to 2018 we will have spent $75 billion on transmission and distribution networks. It's challenging, but we really do need to rehabilitate insulation as an idea," he said.
Pitt & Sherry's analysis considered three different home types in Australia and New Zealand; single-storey, double-storey and semi-detached.
The construction types modelled in the study reflected the type typically used by high volume builders in each capital city.
Home insulation in Australia has a chequered past, following the Rudd government's so-called pink batts scheme, which left four young men dead and caused hundreds of house fires, prompting a royal commission in 2014.
The notorious $2.8 billion scheme was rolled out in 2009 as a stimulus measure during the global financial crisis, attracting shonky operators and resulting in 1.2 million homes being fitted with free or subsidised ceiling insulation.
"There can be no doubt, 'pink batts' was an awful period. But fact remains that insulation is incredibly cost-effective ... and I think there should be incentives for consumers," Mr Westmore said.
Robert Crawford, senior lecturer in construction at the University of Melbourne, said producing and installing insulation was a "really easy way" of improving building performance, but it had to be done so with care.
"We need to look at things holistically, in terms of how many resources go into the manufacture of insulation and the environmental impact," he said.
"This depends on the fuel source, the type of energy used and the material; whether it's fibreglass, cellulose or rockwool. They all have different demands."
Managing director of Knauf Insulation Stuart Dunbar said the benefits of insulation "should last the life of the building with minimal maintenance, unlike heaters and airconditioners which need to be serviced and eventually replaced".