With winter coming, or already feeling like it is here, for many states, we look at a number of ways that you can reduce your power bills in both the short term and also insulate yourself from price hikes in the future.
2025 has been a challenging year for households and businesses. The reality of growing cost-of-living pressures is hard to escape. We see it in our daily news feeds, in our grocery shopping costs and when we open our bills. According to the experts and regulators, the cycle of rising costs is projected to continue throughout the year.
On July 1st, authorities have approved a rise in the ceiling that energy companies can charge. The result for Australians is that we will most likely see our energy prices continue to increase in the second half of the year. In response to the increases, The Australian Energy Regulator (AER) Chairwoman Clare Savage said, “We know that cost-of-living pressures are front of mind for many households and small businesses.” A related article from April Glover at news.com.au states that ‘the average household may soon be paying $200 more a year on electricity bills, but some will be slugged harder than others.’
According to recent research by Compare the Market, 43.2% of Australians surveyed said that they had received a ‘shock bill’ in the last quarter, with 75.2% of these stating that their electricity or gas bill was what shocked them the most.’ The Compare the Market findings showed that the areas of most concern were:
- Electricity or gas bills: 75.2%
- Water bills: 30.7%
- Cost of fuel: 27.3%
- Phone bills: 15.1%
- Internet bills: 13.3%
Tips on How to Reduce Household Energy Consumption
There are some simple changes that we can make in our everyday lives that help us to become more energy-smart at home. Here are 3 tips that you can implement today to make your house or apartment more energy-efficient:
Tip 1. Insulation: Stop Your Warm Air from Escaping
Retaining the heat in your house or apartment is a simple and effective way to keep your energy bills down. Whether your home is heated by natural sunlight during the day or by your heating system, follow these easy-to-implement insulation tips to stop the warmth from escaping:
- Seal the gaps under your doors with a traditional door snake, weatherstripping or a door sweep.
- Check if you have any gaps around your windows and fix them with weatherstripping or foam strip-style products.
- If you have curtains, keep them closed once the sun goes down. If you don’t have curtains and your house feels cold, installing curtains can be a relatively cost-effective way to keep heat in.
Tip 2. Use Your Ceiling Fan to Spread the Warmth
We all know that heat rises, so it makes sense that one of the warmest parts of any room is up around the ceiling. A good way to benefit from this warm air is to change your ceiling fan settings so that it circulates the warm air around the room. You can do this by simply locating the reverse switch on your fan and changing the direction that the blades rotate in. (Check the product manual to see if your fan has a reverse function and to find the switch).
Tip 3. Be Energy Efficient with Your Appliances
The appliances that we use around the home all contribute to our energy costs and bills. None of these tips will be new to you, but often a reminder is just as helpful as a new piece of information when you are creating energy-efficient habits. Here are some reminders to help you reduce your energy consumption with appliances:
- Check the energy rating when you buy new appliances. The more energy stars, the cheaper the appliance will be to run.
- Switch off your appliances at the wall.
- Don’t pay for appliances that you are not using. Switch off lights, computers and other appliances when they are not in use.
Unlock Big Energy Savings With Just One Change
If you are looking to make more significant energy savings, two of the important questions that you will want to answer are:
- What are the biggest contributors to energy consumption and my energy bills?
- What is the best solution?
1. What is the Biggest Contributor to Your Energy Bills?
The NSW Government estimates that over half (56%) of household energy use is related to your heating and cooling, plus your domestic hot water system. More specifically:
- Heating and cooling can account for 27% of household energy consumption.
- Hot water accounts for 29% of the average household’s energy use.
The Australian Government estimates that the combined consumption equates to 65% of household energy usage.
Whether 56% or 65%, these statistics both point to significant energy savings for your home by installing a more efficient system that delivers your heating, cooling and hot water.
2. The Best Solution – Heat Pumps
Let’s unpack some of the reasons why a heat pump like an R290 heat pump could be an ideal solution to your mounting energy bills, while also making your home more comfortable and sustainable.
What are the Advantages of R290 Heat Pumps?
Proven in Europe and North America, heat pumps, particularly R290 heat pumps, are fast becoming recognised in Australia for their ability to heat, cool and provide hot and chilled water for your home – all from one money-saving and space-saving device.
A NSW Government report looked into the cost savings for an average four-bedroom home and a two-bedroom apartment. It found that the savings per year were up to:
- $1,670 per year for a 4-bedroom home installing an electric heat pump such as an R290 heat pump.
- $690 per year for a 2-bedroom apartment installing an electric heat pump such as an R290 heat pump.
You can read more on the projected savings and the NSW Consumer Energy Strategy here.
So if you are looking for the most energy-efficient and sustainable way to heat, cool and provide hot water for your new build, or as a retrofit to your existing house or apartment, R290 heat pumps are the market-leading solution.
High-Performance and Sustainable. Additional Benefits of R290 Heat Pumps for Homes
Often when we hear that a product saves us money or is more sustainable, we assume that there may be a compromise with its performance. With an R290 Heat Pump, like the Maxa i-290 range, you will benefit from industry-leading performance levels and energy efficiency, all with a low GWP (GWP=3). Some of the benefits of the Maxa i-290 range include:
- Industry-leading heating performance with COP 4.94 for the 16kW model.
- Industry-leading cooling performance with EER 3.35 for 12kW model.
- Hot water production up to 75°C/78°C (for 21kW models and above).
- Down to 5°C chilled water production.
- Sustainable natural refrigerant, R290 with GWP (Global Warming Potential) of 3.
What to Look for in Your Heat Pump
If heat pump technology is new to you, or if you are looking for ways to identify the products that will reliably provide you with high levels of energy efficiency and performance, coupled with durability and sustainability, look for the following when choosing a heat pump for your home:
- A minimum of a 5-year, or more, parts and labour warranty for your heat pump.
- The heat pump is tested and certified in Australia for all Australian conditions by VIPAC Engineers & Scientists.
- Additional, internationally recognised certifications help to ensure the quality of your heat pump for example, Eurovent Certification for European-designed and engineered heat pumps, such as Maxa.
- R290 refrigerant heat pump – you can read more about the benefits of R290 refrigerant here.
Frequently Asked Questions (FAQ)
- Which household appliances are causing the biggest spike in my winter energy bills?
Heating, cooling, and water heating account for a large portion of your energy consumption, making up roughly 69% of an average household’s energy use (40% for heating/cooling and 29% for water heating). Upgrading these systems provides a high potential for noticeable bill reductions.
- How can I easily stop warm air from escaping my home without spending a lot?
Yes. A simple but effective way to improve the insulation in your home is to install weather stripping around windows and doors to seal drafts, use door snakes to block chilly air gaps beneath doors, and reverse your ceiling fans to push trapped warm air near the ceiling back down into your living areas.
- What key features should I look for when selecting a new heat pump?
You should look for a system that provides both heating, cooling and domestic hot water, delivers high energy efficiency with quiet operation, and utilises environmentally friendly refrigerants like R290 to maximise your comfort, energy savings, and sustainability.
Contact Us to Learn More About the Next Cycle Ecosystem and How We Can Help Your Business
Whether you’re an air conditioning installer, a hydronic heating specialist, a project manager in government, or a homeowner looking to reduce your environmental impact, Next Cycle offers a complete ecosystem of high-performing, low-emission heating, cooling, hot water and chilled water solutions to meet your needs. Get in touch if you would like more information on our product range, or if you would like to enquire about pricing.
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