One of the most economical, quick, and socially responsible ways to reduce emissions and prepare for the effects of climate change is to upgrade existing homes through insulation, electrification, rooftop solar plus batteries, energy-efficient appliances, and intelligent controls.

Home renovations are a high-impact lever for Perth and Western Australia, in particular, due to focused retrofit programs, expanding state and federal rebates (particularly for batteries and energy-efficiency upgrades), and a high penetration of rooftop solar.  

Retrofits offer several benefits to property managers and agencies, such as Bargoti Real Estate, including reduced operating costs, enhanced tenant comfort, increased market appeal, and future-proofing assets against market changes and regulatory shifts.

All states and territories must follow the federal government’s lead in climate adaptation. Although heatwaves, floods, bushfires, and cyclones are not new hazards, we need to adapt our approach to preparing for them.

For all Australians to maintain affordable and accessible housing and to increase resilience, we require a single, well-coordinated national framework.  

In our submission, Bargoti Real Estate suggests that a single, nationally recognised risk-rating instrument be developed to inform insurers, guide planning decisions, and provide homeowners with the knowledge they need to fortify their homes.

To prioritise the most significant protections, Bargoti Real Estate is also supporting a “Hierarchy of Control” model, which ranks hazard-control methods from most to least effective. This approach is based on tried-and-true workplace safety principles.

The best opportunity to mitigate the effects of climate change on our built environment is to enhance Australia’s existing housing stock. Even if new construction now meets high and rising standards, the nation’s eight to ten million older homes remain the most vulnerable to severe weather and require special attention to increase their resilience.

The millions of older homes that require targeted modifications to withstand future disasters present the actual problem. The federal government should collaborate with states, territories, and industry to establish a clear timeline and allocate resources for these reforms.  

Our houses and communities will be strengthened if we take a calm, well-coordinated approach today, and future natural disasters will be less expensive and disruptive.

A comprehensive, practical, and fact-based guide for Perth property managers, buyers, landlords, and owners is available below. It describes the importance of retrofits for the environment, highlighting which improvements yield the best emissions and financial returns in Perth’s climate, as well as how local programs and incentives operate.

Why upgrading existing homes matters for climate change?

Two key facts support the climate argument for house improvements:

1. A significant source of emissions is buildings:

• A large portion of greenhouse gas emissions worldwide and in Australia is caused by the energy used in homes for activities such as heating, cooling, appliances, hot water, and lighting.  
• Making buildings more energy-efficient and electrified lowers demand and facilitates the transition to renewable energy sources at a far lower cost.

2. The retrofit process is quick and fair:

• Although it’s a gradual process, building new zero-carbon houses is crucial in the long run.  
• In 2050, the majority of the housing stock will already be in place.  
• By upgrading those properties, immediate emissions reductions are achieved, bills for low-income households are lowered, and communities, rather than just new homeowners, share the benefits.

To put it briefly, upgrading existing homes is a high-impact, short-term approach to climate mitigation that complements the implementation of new construction standards and the adoption of renewable energy sources. Federal statements regarding the Household Energy Upgrades Fund and residential upgrade funds provide essential background information on the scope of national retrofit projects.

Perth & WA context: energy mix, solar uptake and policy levers

Selecting the appropriate retrofit measures is aided by knowledge about Perth’s climate and policy environment.

1. Sunshine and the possibilities for rooftop solar

• Perth enjoys one of the sunniest climates in Australia, which makes rooftop solar exceptionally efficient.  
• Rooftop PV has been widely adopted in Western Australia for many years.
• In Perth, many residential roofs already have panels, and installers frequently suggest larger systems to prepare homes for the future transition to electric appliances or EVs.  
• Another example of how home-scale solutions might change the grid is research conducted in WA, which suggests that ubiquitous rooftop solar combined with batteries could significantly minimise the demand for new large-scale transmission/power lines.

2. Battery initiatives and the drive for electrification

• Western Australia introduced a broader residential battery program and associated incentives in 2025, which significantly reduced the initial cost of home battery systems and increased the financial and emissions-reduction appeal of solar and battery combinations.  
• The program supports federal efforts to lower battery prices nationwide, such as the Cheaper Home Batteries program.  
• These combined incentives significantly alter the economics of resilience and household electrification.

3. Perth’s municipal assistance and local grants

• Grants for residential sustainability assessments and matched financing for multi-dwelling upgrades—especially for strata and common-area improvements—are being made available more frequently by the City of Perth and local governments.  
• For apartment complexes and strata communities, where cooperation and preliminary evaluations are crucial, these local channels are especially beneficial.

4. The trend of emissions in Australia

• Australia is reducing its emissions through a combination of large-scale renewable energy sources, energy storage, and home-scale improvements, according to national emissions predictions and energy statistics.  
• The justification for speeding up retrofits in all states, including WA, is supported by this national context.

What does this imply for property owners in Perth?

A conducive climate for prioritising rooftop PV, battery storage, and electrification (heat pumps, electric hot water, and induction cooking) is created, in addition to efficiency work (insulation, sealing, and shading), by an abundance of solar resources, expanding battery subsidies, and local funding.

The carbon-saving hierarchy — which upgrades give the most bang for buck?

Prioritise initiatives that reduce emissions the quickest and least expensive when considering upgrades using this straightforward hierarchy:

• Efficiency improvements that are inexpensive and regrettable (draught proofing, LED lighting, thermostats, air sealing)
• Thermal comfort and demand decrease (improved windows, shading, and insulation)
• Reverse-cycle air conditioners and heat pumps without gas heaters, as well as heat pump hot water, are examples of efficient equipment and systems.
• Moving from gas to electric heating and cooking, powered by low-emission grid electricity, is known as electrification.
• Renewable energy on-site plus storage (rooftop solar combined with batteries)
• Optimisation of behaviour and controls (smart thermostats, load control, smart meters, scheduling)
• Deep refit and fabric upgrades (such as replacing double glazing, insulating walls, and building-envelope work, where funds permit)

The strategy is clear when applied to Perth’s climate: electrify, then add solar and batteries, after reducing demand through shade and insulation. Reducing cooling loads and boosting nighttime storage for evening use results in significant savings in hot summer Mediterranean regions (like Perth).

Technical breakdown: what to upgrade, and why

We break down the most significant improvements for Perth homes below. Each item’s description, significance, performance in Perth’s environment, approximate cost considerations, and notes for strata and landlords are included.

1. Draught sealing & air-tightness (low-cost, high-return)

• Weather-strip doors, install door snakes where necessary, and seal gaps around windows, doors, and service penetrations.
• Because sealing lowers air infiltration and stabilises interior temperatures, leaky dwellings require more heating and cooling.
• In the context of Perth, reducing nighttime incredible air loss and summer afternoon hot air intrusion lowers the need for air conditioning.
• Minimal (mainly labour and a few supplies). ROI: Usually quick, ranging from months to years.
• A good upgrade for tenant comfort with minimal disturbance. Can be incorporated into regular property upkeep.

2. Insulation (when possible, on the walls, ceiling, and underfloor)

• For older homes, consider adding or improving ceiling insulation, insulating internal walls, and/or insulating underfloors and cavities.
• Creates thermal stability in the house, reducing the need for heating in winter and cooling in summer.
• Perth has excellent ceiling insulation, which lowers the amount of solar heat that enters the roof cavity. Roof reflective foil and wall insulation significantly reduce the peak cooling load.
• The price is moderate. ROI: three to seven years, based on energy prices and scope.
• Frequently, a good investment option; to optimise benefits, consider integrated strategies (ceiling + ducted AC sealing).

3. Enhancements to glass, window coatings, and shading

• Upgrade to double glazing, install reflective film, or install external shading (such as awnings, pergolas, or shutters).
• Prevents solar heat gain through glazed surfaces, which significantly lowers the summertime AC load.
• Windows facing north and west are the most advantageous. Internal blinds are less effective than external shade, such as verandahs, shutters, and reefing.
• Vary (double glazing is costly; external shading and film are comparatively inexpensive). ROI: Generally speaking, shading is more cost-effective than replacing windows.

4. Effective heating and cooling: reverse-cycle air conditioners and heat pumps

• Install heat pumps for space heating and hot water, or replace outdated reverse-cycle equipment with more energy-efficient, contemporary inverters.
• When powered by renewable electricity, modern heat pumps are far cleaner than gas and provide two to four times the efficiency of electric resistive heaters.
• The primary method for heating on chilly evenings and cooling in the summer is the use of heat pumps (also known as reverse-cycle air conditioners), which are ideal for Perth’s climate.
• Medium to high, although there are significant operational and carbon savings.

5. Hot water: replace resistive gas/electric systems with heat pumps

Where appropriate, install efficient electric storage units or heat-pump hot water systems.

• Heat pumps eliminate gas use where it exists and reduce hot-water energy use by approximately 50–70% as compared to electric resistive heaters.
• When combined with rooftop solar, there are instantaneous reductions in emissions.
• Price: Moderate. Hot-water electrification is a goal for several subsidies and initiatives.

6. Making the switch to induction cooking

• Install induction cooktops in place of gas stoves.
• Direct indoor combustion is eliminated by induction, which is also more energy-efficient (with health benefits).
• Induction is the preferred option for households electrified for climate-related reasons, and it works well in conjunction with rooftop solar for cooking during the day.
• Price: Low to medium (cost of the hob plus possible small electrical work).  
• If you’re a landlord, consider incorporating induction into your kitchen renovation.

7. Rooftop solar PV (the Perth no-brainer)

• Install solar PV in accordance with household demand, considering future-proofing for heat pump loads and EV charging.
• PV works well with electrified appliances and drastically lowers grid electricity purchases in Perth’s sunny climate.  
• When paired with battery incentives and increased retail prices, many systems now pay for themselves within a manageable timeframe.
• In the Perth context, new state battery rebates, a robust installation market, and high solar output make it an even more appealing option.  
• According to research, the need for grid infrastructure may change if rooftop PV and batteries are maximised.
• System size, quality, and installation costs are all variable.  
• Perth’s typical residential systems come in a wide range of sizes, with 6–10 kW being typical sizes that work well with electrified homes.

8. Virtual power plants (VPPs) and batteries

• Using home battery storage (typically in conjunction with solar) to provide resilience, lower peak demand, and store daytime generation for evening consumption.
• Batteries can be used to earn extra credits through VPPs, boost solar self-consumption, and lessen dependency on the grid during peak hours.  
• New battery incentives in Washington drastically lower upfront expenses.
• Perth context: Because of the demand for cooling in the evenings and the possibility of VPP credits from utilities, batteries are very lucrative.

9. Energy monitors, weather-based thermostats, and intelligent controls

• Automated load management, smart thermostats, and whole-house energy monitors.
• In addition to hardware enhancements, behavioural change brought about by automation and feedback frequently results in additional savings of 5–20%.
• In the case of Perth, intelligent scheduling can enhance battery/VPP value while minimising cooling during periods of high demand.

10. Upgrades to fabrics and extensive retrofits

• Upgrade the roof materials, walls, double-glazing, deep insulation, and ventilation systems (such as mechanical ventilation with heat recovery, or MVHR) of homes that aim to achieve a significant step-change in performance.
• Although they are expensive, deep retrofits can achieve near-net-zero performance.  
• Homes with long-term owners or valuable heritage properties in need of delicate interventions are the most outstanding candidates for them.
• Perth context: While MVHR (mechanical ventilation with heat recovery) has historically been popular in mild climates, careful planning is needed to prevent heat increases during Perth’s sweltering summers.

Economics: costs, payback, incentives, financing & landlord models

Uptake requires an understanding of economics, and Perth’s incentives are making a difference.

1. Key WA & federal incentives to know (2024–2025 snapshot)

• Expanded home battery refunds are available to clients of Synergy and Horizon Power under the WA home Battery Scheme.
• When combined with federal assistance, these state rebates can drastically lower battery prices.  
• In WA, this dramatically increases the financial appeal of combining solar with batteries.
• The Federal Cheaper Home Batteries Program lowers upfront battery prices by combining state rebates with a nationwide battery discount of around 30% as of July 2025.
• Larger-scale retrofit projects are now feasible thanks to significant financing allocated for household retrofits and social housing renovations through federal funds and state-administered initiatives.
• The City of Perth’s Residential Upgrade Grants and Sustainability Assessments offer grants and matching cash for renovations to common areas and multi-dwelling units, which are beneficial for strata buildings.

Typical paybacks and what to expect in Perth

• Low-cost solutions (thermostat, LEDs, sealing) typically pay for themselves in less than two years.
• Depending on the extent and energy costs, insulation and shading can pay for themselves in three to seven years.
• When replacing outdated electric units, heat-pump hot water typically lasts three to six years, especially when combined with solar power.
• Payback periods for solar PV systems are frequently significantly shortened for households transitioning to electrification and receiving a battery refund. Payback periods are contingent on system size, retail electricity prices, and export tariffs.
• Battery systems have previously had lengthy payback periods. Still, with the help of state and federal rebates (WA + Cheaper Home Batteries), many homeowners can now decrease their repayment timeframe to a manageable 5–8 years.
• Additionally, the economics are improved by VPP credits and reduced peak charges.

2. Financing & rollout models for landlords and property managers

• Owner-funded improvements are paid for upfront by the landlord; they raise the property’s value and appeal as a rental property, and may result in somewhat higher rentals or fewer vacancies.
• Green leases and tenant incentives: landlords offer improvements in return for energy-cost sharing or lease provisions. Excellent for long-term leases.
• On-bill financing and retrofit loans are those that are repaid with cash flow from real estate (for example, through specialised retrofit lenders or as part of a mortgage refinance).
• Third-party financing, often referred to as the ESCo model, involves energy service providers financing installations and recouping costs by retaining a portion of the resulting savings.  
• Excellent for landlords who don’t want to make financial investments.
• Strata funding and special levies: to cut costs for flats, strata may use matched grants, reserve funds, and bulk purchases.

Barriers & risks — and how to manage them

1. Initial capital expenditures

Utilise incentives, ESCo models, low-interest retrofit loans, and phased retrofit plans (beginning with low-cost, high-impact solutions) for management.

2. Divided incentives (landlord pays, tenant benefits)

Management options include shared savings plans, green leases, landlord-funded improvements that set the property apart from the competition, or governmental pressure (minimum energy performance standards for rentals).

3. Coordination in apartment complexes and strata

Employ specialised experts to provide evaluation and staged retrofit plans, and utilise strata funds (such as the City of Perth Residential Sustainability Evaluation Awards).

4. Installation quality and skill

Use standardised scope-of-work documentation, hire installers certified by the Clean Energy Council, and include post-installation verification in contracts.

5. Limitations on rooftop solar grid connections in specific communities

Adopt battery systems to control export and maximise self-consumption; collaborate with Western Power and regional DNOs to size systems suitably. Western Power offers guidance on PV grid connection limitations.

Practical step-by-step retrofit roadmap & checklists (Perth homeowners & landlords)

To assist property owners in taking action, a phased plan and checklists are provided below.

1. Quick pre-upgrade checklist (what to do first)

• A basic energy audit should be conducted, preferably accompanied by a thermographic scan.
• Verify your eligibility for the WA battery rebate and federal assistance. If you live in a stratum or multi-family housing complex, consider exploring City of Perth grant alternatives.
• LEDs can be used as a replacement for CFL or incandescent illumination.
• Fix the main drafts coming from windows, doors, and roof hatches.
• To learn about usage trends, set up an energy monitor.

2. Staged retrofit plan (budget-driven)

Stage A: £/low budget (high return on investment)

• LED lighting, thermostats, low-flow showerheads, and draft sealing.
• Top-up insulation for the ceiling was absent.

Stage B: medium budget, significant influence

• Pump hot water.
• High-efficiency reverse-cycle air conditioner and heat pump.
• Window film and external shading are used for essential exposures.

Stage C: Renewable energy and strategic electrification

• Large-scale solar PV that is capable of electrifying and charging EVs.
• To capture solar energy for evening loads, batteries are stored. Federal battery discounts and WA battery rebates are available.

Stage D: Value uplift and deep retrofit

• Wall insulation, double glazing, and MVHR (expert assistance needed).
• Integrated control systems for the entire house and possible integration of distributed energy resources (DERs) for VPP involvement.

Checklist for landlords (to manage split-incentives and legal duties)

• Verify whether the property satisfies any minimum rental energy performance criteria by consulting the local council’s requirements and WA rules.
• High-impact, low-disturbance renovations should be given priority in between tenancies.
• When landlords make improvements, they should offer tenants incentives for longer leases.
• Upgrades should be documented and included in rental ads (energy-efficiency credentials increase marketability).

Conclusion — Is upgrading existing homes the most effective way to combat climate change?

One of the most effective short-term ways to reduce emissions is to upgrade existing homes, particularly when combined with electrification and the use of rooftop solar panels and batteries.  

Targeted retrofits in Perth and Western Australia yield immediate benefits, including reduced home emissions, reduced energy bills, and enhanced resilience, thanks to favourable sunshine, state and federal battery refunds, and local council incentives.  

Retrofits help future-proof properties, draw in tenants and buyers, and develop new service lines, making them a business opportunity as well as a climate action for property managers and real estate companies like Bargoti Real Estate.

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