Energy Hardship in Australia: Why Renters and Low-Income Households Are Being Left Behind

Insights from the Good for the Hood Podcast with Dr Jo Taranto & Carol Valente

I had the absolute privilege of joining Good for the Hood’s webinar, “Save Money, Live Comfortably – The Sustainable Home Forum,” and listening to Carol Valente unpack the realities of energy hardship in Australia — and what it really means for renters, vulnerable households, and the future of healthy, affordable homes.

Australia is experiencing a growing crisis that too often sits in the background of our climate and housing conversations: energy hardship. For millions of households, staying comfortable at home—whether warm in winter or cool in summer—is becoming increasingly difficult, unhealthy, and expensive.

On the Good for the Hood podcast, sustainability advocate Jo Taranto sat down with Carol Valente, Executive Manager of Advocacy & Policy at Energy Consumers Australia, to unpack why so many Australians are struggling, why renters are disproportionately affected, and what needs to change within our housing and energy systems.

Carol is an energy equity specialist with deep expertise in consumer policy and a PhD focused on energy poverty and vulnerable households. Her research spans housing, construction, energy markets and social equity—making her insights particularly relevant as Australia navigates rising energy prices and worsening climate extremes.

Here’s a breakdown of what she shared.

🌡️ The Three Main Drivers of Energy Hardship

Carol explains that while people’s experiences vary, research consistently shows that three big factors drive energy hardship in Australia:

1. Rising energy prices

Over the last few years, energy bills have surged due to external market shocks and domestic supply challenges. Even average households are feeling the pressure—let alone those on low incomes or in poorly performing homes.

2. Low incomes

When income doesn’t rise with energy costs, essential bills become harder to manage. For many households, energy now competes directly with food, medical costs, transport and rent.

3. Poorly performing homes

This is the biggest and most persistent problem.

Australia’s housing stock is among the least energy efficient in the developed world, according to recent international benchmarking.

Homes that leak heat, lack insulation, and overheat in summer force residents to use more energy just to stay comfortable. And when energy use goes up, so do bills.

📊 How Many Australians Are Affected?

Energy Consumers Australia surveys households every six months. Their most recent analysis revealed:

• 1 in 5 Australian households (20%) are experiencing energy hardship
• 70% of renters report avoiding heating or cooling because of high costs
• 40% of renters say they cannot keep their home comfortable during extreme weather
• Renters often spend double the share of income on energy compared to homeowners

This paints a stark picture: energy hardship is widespread, and renters are at the centre of it.

🏚️ Why Renters Are Hit the Hardest

The “split incentive” problem is well known:

Landlords own the property, but renters pay the bills.

Carol’s research shows:

• Only 9% of rental properties have solar (compared to nearly 50% of owner-occupied homes)
• Only 37% of rentals have insulation (compared to 80% of owner-occupied homes)
• Over 2 million rental properties in Australia meet no minimum energy standards

With no requirements to improve energy efficiency—and no incentive to upgrade—renters are left in homes that are cold, hot, humid, leaky, and expensive to run.

🧱 Are There Minimum Standards for Rentals?

Some states have started moving in the right direction:

• ACT: First jurisdiction to introduce minimum energy standards, starting with mandatory ceiling insulation
• Victoria: Recently added standards for ceiling insulation, draught proofing, efficient heating/cooling and appliances

But most states and territories have no minimum requirements at all.

This means millions of rental homes remain substandard, unhealthy, and expensive to live in.

Importantly, Carol notes that where minimum standards are in place (like the ACT), there is no evidence they drive up rents.

Rent prices are influenced by larger systemic issues—not by energy upgrades.

🏡 What Can Landlords Gain from Upgrades?

While some landlords worry about the cost, research shows:

• Most landlords want to do the right thing
• Many simply need support, guidance and incentives
• Programs like the Victorian Energy Upgrades scheme can help offset costs
• Energy-efficient homes attract higher tenant satisfaction and reduced vacancy
• Studies show higher-performing homes sell for a 10% premium on average

Upgrades benefit both the tenant’s comfort and the landlord’s long-term asset value.

🔧 What Can Renters Do Right Now?

Even with limited control, renters do have some options.

1. Check your energy plan

Loyalty does not equal savings.

Switching plans (even with the same retailer) can reduce bills by up to 30%.

Tools to use:

• Energy Made Easy (national)
• Victorian Energy Compare (Victoria)

2. Simple low-cost efficiency hacks

Carol recommends:

• Draught stoppers/snake rolls under doors
• Strategic use of curtains and blinds
• Bubble wrap on windows (yes, it works!)
• Running fans with air-conditioning to improve efficiency

These won’t transform a home—but they can make a meaningful difference.

3. Know your rights

In jurisdictions with minimum standards, renters can request compliance.

Carol emphasises that better education and clearer guidance for renters is essential.

🏢 What About People Living in Apartments?

Apartment residents face extra barriers—especially when changes require body corporate approval.

But the same principles apply:

• Get on the best energy plan
• Improve draught sealing
• Use shading and window treatments
• Advocate for building-wide upgrades (e.g. roof insulation, common-area efficiency, EV readiness)

Carol stressed that renters and apartment dwellers are often overlooked in policy discussions—yet they are some of the people most affected.

🌱 A Systemic Problem That Needs a Systemic Response

Carol’s core message is clear:

Energy hardship isn’t just about bills — it’s a housing problem.

Improving the efficiency of Australian homes is essential for:

• reducing energy poverty
• improving health and wellbeing
• lowering emissions
• helping households cope with extreme weather

Whether you rent, own, or are somewhere in between, we all stand to benefit from a housing system that is healthier, more resilient, and more energy efficient.

Listening to the conversation was such a privilege — the depth of knowledge, compassion, and commitment to energy equity left me both inspired and challenged in the best way. I hope this conversation encourages more of us to rethink how we support renters, vulnerable households and the future of healthy, affordable homes.