The Baillieu government could save $2.5 billion on concession payments over the next 20 years if it fulfilled an election commitment to improve the average energy efficiency of Victorian homes, new research suggests.
Research to be released today by the Alternative Technology Association, the Victorian Council of Social Service and Environment Victoria says retrofitting 1 million low-income households would reduce the long-term state budget burden of helping them pay power bills.
Heading into the 2010 state election the Coalition promised to support the transition of all existing housing stock to meet an average of five-star energy rating as soon as possible. It is estimated low-income homes now have an average rating of two stars.
The energy star system rates how much a house needs to be heated or cooled to stay comfortable. All new homes in Victoria have to be built with a six-star energy rating, but it has been estimated upgrades to 1.46 million existing households may be needed to meet the five-star commitment.