← All examples

Best Energy Upgrades for New South Wales Homes in 2026

Based on a typical 3-bedroom home in New South Wales · Updated October 2026

NSW homes on the Ausgrid and Endeavour networks pay some of the highest electricity rates in the country. Strong solar irradiance across the state -- from Sydney's eastern suburbs to the Hunter Valley and beyond -- means solar panels and heat pump hot water consistently deliver strong returns. NSW homeowners can also access federal STCs for solar and the federal Cheaper Home Batteries Program for battery storage.

What we modelled: how we calculated these results

3-bedroom home, ~18 years old
State: NSW
Electricity: 33c/kWh
Feed-in tariff: 5.0c/kWh
Gas: 4.5c/MJ
Gas usage: ~13,009 MJ/year
Electricity usage: ~3,808 kWh/year
Analysis period: 15 years

Recommended upgrade sequence

These upgrades are ordered for maximum return. Each step accounts for the energy changes made by previous steps.

1

Electric Vehicle

Pays for itself in 4 years, then saves ~$1,838/year.

$7,876
Profit
Net cost
$9,000
Payback
4 yrs
15yr savings
$27,305
2

Solar + Battery

Pays for itself in 5 years, then saves ~$2,055/year.

$7,735
Profit
Net cost
$10,119
Payback
5 yrs
15yr savings
$31,648
3

Heat Pump Hot Water (gas switch)

Pays for itself in 6.7 years, then saves ~$423/year.

$3,692
Profit
Net cost
$3,195
Payback
6.7 yrs
15yr savings
$8,508
4

Induction Cooktop

Pays for itself in 6.2 years, then saves ~$115/year.

$2,408
Profit
Net cost
$2,800
Payback
6.2 yrs
15yr savings
$8,172

Portfolio summary

$25,114
Total investment
$75,632
Total savings (15yr)
$21,711
Net profit

Below market returns at this time horizon

These upgrades still save money on energy bills, but the return doesn't beat the 8% stock market benchmark over 15 years. They may become worthwhile with a longer holding period.

Draught Sealing
Below benchmark by $1,103
Battery (add-on)
Below benchmark by $1,474
Insulation
Below benchmark by $2,030

Frequently asked questions about New South Wales energy upgrades

What is the best energy upgrade for a New South Wales home?▾
For a typical 3-bedroom home in New South Wales, Electric Vehicle is the highest-return upgrade with a net profit of $7,876 over 15 years and a payback period of 4 years.
How much can I save on energy bills in New South Wales?▾
By following the full recommended upgrade sequence, a typical New South Wales home could save $75,632 over 15 years, with a total investment of $25,114 and a net profit of $21,711.
What electricity rate does New South Wales pay in 2026?▾
We modelled New South Wales homes at 33c/kWh with a feed-in tariff of 5.0c/kWh, based on current NSW retail rates. You can adjust these in the calculator to match your actual plan.
What order should I install energy upgrades in New South Wales?▾
The optimal sequence is: 1. Electric Vehicle, 2. Solar + Battery, 3. Heat Pump Hot Water (gas switch), 4. Induction Cooktop. Each step is calculated after accounting for the energy changes from previous upgrades, so the order matters.

See what the calculator recommends for your home

These results are for a typical home. Your savings depend on your actual energy usage, roof orientation, and appliance ages.

Run the calculator for your home

Examples for other states

VictoriaQueenslandSouth AustraliaWestern AustraliaTasmaniaAustralian Capital Territory

Related reading

Solar Panels in Australia: Cost and Savings in 2026Home Batteries in Australia: Do the Numbers Actually Stack Up in 2026?Heat Pump vs Gas Hot Water in Australia: 2026 Numbers