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In that situation, one utility bill may drop while another stays frustratingly high.
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In Australia, a new analysis suggests the order of home upgrades matters. While many people think rooftop solar is the obvious first move for lowering utility bills, households may save much more by starting with home efficiency improvements, then replacing gas appliances, and turning to solar panels after that.
According to Energy Matters, the Yarra Energy Foundation has helped many Melbourne households lower energy costs by about $1,400 a year. For homes that are all-electric, include rooftop solar, and are paired with an electric vehicle, yearly savings can climb to around $4,000.
Rather than getting better results from bigger solar systems or more expensive batteries, the main difference appears to be the order of the upgrades: improve and weatherize the home first, replace gas appliances with efficient electric ones next, and add solar after that.
Many older Australian homes average only 1.8 out of 10 on NatHERS, and CSIRO says sealing leaks can reduce heat loss by roughly 15% to 25% while insulation can cut heating and cooling bills by more than half.
Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers in your area.
To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best options for your needs, and their expert advisers can help you compare quotes and pick a winner.
With or without all of the upgrades, going solar is still one of the best ways you can save money on home energy, and EnergySage can help you get quick solar installation estimates. You can also compare quotes through EnergySage to find the right system for your roof and budget.
If a home still relies on gas for heating, hot water, or cooking, solar can only reduce part of the overall energy cost. In that situation, one utility bill may drop while another stays frustratingly high.
Poor sealing also changes the value of solar. When drafts force heating and cooling to run longer, panels are effectively compensating for an inefficient building instead of powering a well-performing one. In one example, extra daytime solar might sell back for only three to five cents per kilowatt-hour, even as evening power from the grid runs 30 to 35 cents per kilowatt-hour.
Changing out major appliances can improve the math. Energy Matters noted that switching to heat-pump hot water can trim about $400 a year, and Victoria households that go all-electric save roughly $1,900 versus dual-fuel homes, or about $2,230 when rooftop solar is added. Homeowners can pair solar panels with efficient electric appliances to drive their utility costs even lower.
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Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers that can help you save as much as $10k on installation.
To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best local options for your needs, and their expert advisers can help you compare quotes and pick a winner.
Leaving gas altogether can remove a $350 to $400 yearly supply charge. Before getting there, homeowners can start with cheaper steps such as weather-stripping leaks, improving ceiling insulation, and blocking harsh west sun at the windows, then move on to bigger upgrades like replacing gas hot water with a heat pump and gas heating with reverse-cycle split systems.
If you are ready to price out panels after those upgrades, EnergySage can help you go solar with its free tools, which help you curate competitive bids from local installers.
You can also use EnergySage’s solar map. Together, these resources can help you get the best price for rooftop solar panels and access available incentives.
For homeowners considering storage, a battery can do more than help during outages. It can also lower energy costs, support going off grid, and, once a home is fully electrified, store daytime solar power for the expensive evening peak. You can explore EnergySage‘s free tools for information about home battery storage options, including competitive installation estimates.
💡Go deep on the latest news and trends shaping the residential solar landscape
As Roshan Ramnarain, CEO of Energy Matters, said, “Energy Matters believes in a clean energy future. Australia’s road to electrification will be paved with solar, battery, and other renewable energy tech adoption – from households to industry. Our goal is to see Australia move towards net-zero.”
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© 2025 THE COOL DOWN COMPANY. All Rights Reserved. Do not sell or share my personal information. Reach us at hello@thecooldown.com.

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