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Yes—Australia can make a large share of its existing homes climate-ready by improving the building shell first, then electrifying appliances and adding rooftop solar where practical. Climateworks Centre’s December 2023 report models this sequence across 102,000 homes in all 69 NatHERS climate zones. Depending on the upgrade level and dwelling type, the modeled pathways cut household energy bills, reduce peak electricity demand and lower emissions. The figures are national model estimates, not promises for an individual property, and the report says it is intended to inform policy rather than individual financial or asset decisions.
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What “climate-ready” means for an Australian home
A climate-ready retrofit starts with the thermal shell: the roof, walls, floors, windows, doors and the gaps between them. Better insulation and airtightness slow unwanted heat flow, so the home needs less energy to stay warm in winter or cool in summer. Once demand is lower, electric heating, cooling, hot water and cooking equipment can do more with a smaller energy load. Rooftop solar can then supply part of that electricity where the roof, ownership arrangement and building form allow it.
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Gill Armstrong and Michael Ambrose of CSIRO describe the sequence as a “thermal-first” approach—improving airtightness and insulation in roofs, walls and floors so that electrification and rooftop solar deliver greater benefits. It is not a single product, appliance or mandatory checklist. Climate, construction, orientation, existing insulation, window area and whether the dwelling is detached, attached or in an apartment all affect the sensible combination.
What the Climateworks study actually modelled
The December 2023 Climateworks Centre report analysed a national sample of 102,000 Australian homes spanning all 69 NatHERS climate zones. The researchers represented those homes through 16 housing archetypes. Those archetypes cover about 80% of single-storey detached houses and townhouses and more than 50% of apartments. Coverage describes how much of the housing stock the archetypes represent; it does not mean every home received an individual assessment.
The model compared low-performance homes with three depths of thermal work—quick-fix, modest and climate-ready—and then combined those packages with appliance electrification and, where feasible, rooftop solar. The results therefore show differences between scenarios rather than a quotation for a renovation, an installer’s performance guarantee or a current electricity-bill forecast.
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The three thermal-upgrade depths
| Upgrade level | What the comparison means | How to interpret it |
|---|---|---|
| Quick-fix | A lower-depth thermal intervention modelled by the report alongside electrification. | Useful for showing what relatively accessible work can achieve; the report does not turn it into a universal product list. |
| Modest | A deeper thermal package than quick-fix, also tested with electrification and solar combinations. | Can improve demand and comfort further, but actual scope depends on the home’s fabric and condition. |
| Climate-ready | Higher insulation levels, double glazing, heavy drape curtains and improved airtightness. | The most comprehensive shell scenario in the study, and the one most likely to need financial support for a private household to reach a benefit-cost ratio above one. |
Across all three, the report’s underlying principle is to reduce the load before sizing or adding equipment. Sealing leakage around openings, insulating the roof, walls and floors, and improving windows or coverings can reduce drafts and temperature swings. Door and window weather-stripping or draught-sealing tape is a plausible small task for leakage around openings, but it is an editorially practical example—not a product tested or endorsed by the report authors.
What the model says about bills, demand and emissions
When the modeled thermal packages are paired with full appliance electrification, Climateworks estimates average annual bill savings of $1,690 to $2,002 per home. The report equates that range to 43% to 51% of total domestic energy bills per home in the compared scenarios. These are modeled averages across the quick-fix and climate-ready cases, not guaranteed savings for a particular household, tariff or year.
| Dwelling type | Modeled annual saving with thermal work plus electric hot water and cooking | Important qualification |
|---|---|---|
| Detached house | $1,850–$2,200 | Range reported by Armstrong and Ambrose in the 2023 CSIRO summary of the study. |
| Townhouse | $1,270–$1,480 | Modeled range, not a property-specific estimate. |
| Apartment | $1,030–$1,200 | Modeled range; apartment controls, shared systems and roof access can change the practical pathway. |
Thermal work also reduces the electricity system’s peaks. Climateworks models a reduction of 1.4 to 3.5 kilowatts per home, or about 30% to 77% of peak household demand, for the quick-fix and climate-ready thermal cases. Lower peaks can ease pressure on local networks and make electric equipment easier to operate during extreme weather, although the model does not guarantee a particular home will reach either end of the range.
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The CSIRO article reports that even low insulation levels combined with switching from gas to electric space conditioning can avoid more than two tonnes of CO₂-equivalent per year per house compared with a low-performing home built to pre-energy-efficiency standards. The comparison baseline matters: this is not a universal reduction from every existing Australian home, and the result depends on the modeled fuel and building assumptions.
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Rooftop solar is modeled as a complement to efficiency and electrification, not a substitute for fixing the shell. Climateworks estimates $909 to $1,578 in average first-year net savings when quick-fix or modest thermal upgrades are combined with full appliance electrification and rooftop solar. That estimate includes loan or mortgage interest at an assumed standard mortgage rate of 8%. It is therefore a modeled first-year result under a specific financing assumption, not a current solar quote or a promise of payback.
Some homes cannot use a private roof effectively: apartments may have limited roof area or shared ownership, and shading, orientation, heritage constraints or structural limitations can restrict output. In those cases, thermal improvements and efficient electric appliances can still reduce demand without relying on a panel installation.
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Why private economics and public benefits diverge
The report finds median private benefit-cost ratios above one for quick-fix and modest thermal upgrades. Climate-ready thermal upgrades, however, fall below that household threshold without financial support in the modeled analysis. A household may therefore face a long or unattractive payback even when the wider community gains from lower emissions, better health and comfort, reduced peak demand and less exposure to energy hardship.
That gap explains the report’s policy focus. Its executive summary says: “The key to catalysing a renovation wave will be to remove barriers to uptake, particularly for renters, those living in social and affordable housing, and low-income households.” Owners decide on major fabric work, while renters usually cannot; social and affordable housing providers must manage large portfolios and limited capital; and low-income households may be least able to finance improvements despite having the most to gain from lower bills and steadier indoor temperatures.
A practical thermal-first sequence for an existing home
The study is national modelling, not an individual renovation specification. The sequence below translates its logic into decisions a homeowner or housing provider can investigate with a qualified local professional.
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- Document the starting condition. Record dwelling type, climate zone, existing roof and wall insulation, floor construction, window glazing, obvious drafts, heating and cooling equipment, hot-water system and cooking fuel. Check whether the roof is privately controlled or shared.
- Find uncontrolled air leakage. Inspect door and window seals, service penetrations, exhaust fans, vents and other gaps. Seal appropriate leaks without blocking required ventilation or combustion-safety openings. Weather-stripping can address some opening gaps; larger or concealed leaks need a building assessment.
- Improve insulation where access is practical. Roof and ceiling insulation is often easier to reach than walls or floors, but the correct material, depth and moisture detailing depend on construction and climate. Do not cover electrical equipment or create condensation risks.
- Address windows and coverings. The climate-ready model includes double glazing and heavy drape curtains. A staged project may combine improved curtains and sealing with later window replacement when budgets or access make a full change impractical.
- Reduce demand before replacing appliances. Once heat loss and heat gain are under better control, evaluate electric space conditioning, hot water and cooking. Capacity and circuit requirements must match the dwelling and local electrical rules.
- Assess solar only after the load is understood. Check roof orientation, shading, structure, ownership and grid connection conditions. Solar can offset electric use, but it cannot correct a drafty or poorly insulated building.
- Measure the result. Compare indoor temperature, run times and bills across comparable weather periods. A single bill or an unusually hot season cannot establish the savings range reported by the national model.
How the pathway differs by building type
Detached houses
Detached homes generally have more exposed roof, wall and floor area, so the thermal shell can have a large influence on demand. They also more often have private roof space for solar. The modeled annual saving range is the highest for this category—$1,850 to $2,200 with thermal upgrades plus electric hot water and cooking—but the range remains an average scenario, not a prediction for every house.
Townhouses
Shared walls can reduce some heat transfer while exposed roofs, end walls and windows still matter. Roof rights, body-corporate decisions and electrical capacity may affect solar and appliance changes. Climateworks’ modeled annual range is $1,270 to $1,480 under the same electrification-and-thermal comparison.
Apartments
An apartment may have limited control over façades, shared plant, windows or roof space. Building-wide insulation, glazing or central hot-water decisions can be more important than an individual owner’s appliance choice. The modeled annual range is $1,030 to $1,200, and the report’s archetype coverage for apartments is more than 50%, lower than its coverage for single-storey detached homes and townhouses.
What this report does not establish
- It does not provide a current price list for insulation, glazing, curtains, heat pumps, induction cooking or solar.
- It does not establish today’s rebates, finance offers, installer availability or electricity tariffs.
- It does not calculate the savings of a named property or guarantee that a household will save $1,690, $2,002 or any other figure.
- It does not prescribe one retrofit package for every NatHERS climate zone or construction type.
- It does not replace a building, electrical, structural or moisture assessment before work begins.
Because the findings come from a December 2023 report, treat them as modeled evidence for planning and policy discussion. A current project decision needs current local prices, regulations, tariffs and site information.
The answer to “How can Australian homes be made climate-ready?”
Start with the shell: control air leakage, lift insulation performance and improve glazing or coverings where the home needs it. Then electrify heating, cooling, hot water and cooking, and add rooftop solar when the roof and ownership arrangement make it feasible. Climateworks’ national modelling shows why that order matters: it can reduce energy demand before equipment is added, producing larger combined bill and emissions benefits than treating appliances or solar in isolation. The scale and economics still depend on the dwelling, climate, household finances and access to support.
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