Greening your home could add up to 10% in value, finds new QBE report

A passively designed modern green home.

Australian property has been swept with a cascade of market falls, dragging prices down in 80% of the country. But a new housing report from QBE highlights a surprisingly simple way to add up to 10% to the value of your home: energy-efficient features.

‘Future-proofing’ your home with sustainable features

Collage of a hand dropping sustainable features into a green house.

Sustainable house features can help ‘future-proof’ your investment, explains QBE LMI general manager Pat Priest, and save vital cash amidst the rising cost of living

Additions like solar panels, double-glazed windows, lighter-coloured roofs, rainwater harvesting tanks, and even LED light bulbs reduce the impact on the planet and your wallet – making them highly desirable features for homebuyers.

“An energy-efficient home uses 66% less electricity, 51% less water, and produces 62% fewer greenhouse gas emissions,” says Priest. 

“Just by installing a 5kW rooftop solar system, the average Australian household could save $909 per year on their electricity bills.”

Solar panels, in particular, have boomed in Australia. As of June 2022, nearly 30% of Aussie homes have solar panels installed – representing the highest global uptake of rooftop solar energy. 

Besides reducing usage costs, solar panels can also nab homeowners Feed in Tariff (FiT) credits, which add savings to their energy bills whenever they contribute power back to the electricity grid.

“With Australia’s residential sector producing 15% of the nation’s total greenhouse gas emissions, this not only offers huge benefits to the environment, but to consumers, who stand to save on energy costs by making these changes,” explains Priest.

Another major draw of sustainability is access to green home loans, which reward eco-friendly homes with competitively low interest rates and a slew of other features. But with so few green homes on the market, encouraging sustainable renovations is a key part of the puzzle.

“Making it more affordable to own a green home is a key enabler for consumers to switch over to energy-efficient choices,” states Priest. 

“This is why QBE LMI has just launched a 5 per cent rate reduction for LMI to benefit customers seeking to buy, build or renovate into a green home.”

Going green with your home? Here are easy places to start

With climate change leaning on homeownership costs, sustainability is no longer just an ethics issue: it's a financial one.

“Understanding the environmental and financial benefits of future-proofing their homes will enable consumers to make better choices,” says Priest. 

So if you’re looking for some green-spiration, here are some easy places to start. 

  • Rethink your white goods and appliances. Is your washing machine a bit old? Replace it with a newer, more efficient model. Look at the energy star label before you buy: the more stars, the better. 
  • Spring for LED lighting. According to QBE’s report, LED light bulbs use 75% less energy than traditional halogen bulbs and last 5 to 10 times longer.
  • Redo your insulation. A poorly insulated home is at the mercy of the environment – meaning you have to crank up the aircon or heater to cope. On the other hand, a passively designed and well-insulated home maintains its ambient temperature, which will save you vital electricity. 
  • Double-glaze your windows. Windows leak a lot of heat, so adding another layer can help insulate your place.
  • Paint your roof a lighter colour. New ultra-white paints reflect so much sunlight they may as well replace your aircon, according to a study by Purdue University. But even a commercial-brand coat from Bunnings could shave a few kilowatt hours from your energy usage (without blinding local aeroplanes).
  • Install solar panels. Rooftop solar panels have become a popular and lucrative investment for many Australians in sunny regions. They’re so widespread that for half an hour in August 2022, solar was Australia’s number one electricity producer.
  • Invest in a solar and heat pump hot water system. Often overlooked, your hot water system could be guzzling significant energy. Opt for a solar and heat-powered system, which QBE says uses 60 - 70% less energy than standard electric systems.

For more details on going green, head to our ethical finance hub. Browse and compare home loans below.

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Last updated 14 December 2024 Important disclosures and comparison rate warning*
What are your home loan needs?

Your loan-to-value ratio (LVR): 50%

Loan amount and LVR will affect interest rates.

  • Promoted

    Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Promoted

    Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Promoted

    Budget Home Loan

    • LVR <80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

  • Promoted

    Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Promoted

    Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    5.89 % p.a.
    Fixed 1 year
    Comparison rate
    6.30 % p.a.
    Initial monthly repayment
    $2,867
    Go to site

    Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Optimum Fixed Rate Home Loan.There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a speedy online application. Get the flexibility of loan split options and redraw facility. No offset account available for fixed rate proportion of loan. Other fees may be applicable. T&Cs apply.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    5.89 % p.a.
    Fixed 1 year
    Comparison rate
    6.30 % p.a.
    Initial monthly repayment
    $2,867
    Go to site

    Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Optimum Fixed Rate Home Loan.There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a speedy online application. Get the flexibility of loan split options and redraw facility. No offset account available for fixed rate proportion of loan. Other fees may be applicable. T&Cs apply.

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Flex Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.79 % p.a.
    Fixed 2 years
    Comparison rate
    6.27 % p.a.
    Initial monthly repayment
    $2,931
    Go to site

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Budget Home Loan

    • LVR <80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Flex Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.33 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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