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Best Energy Upgrades for New South Wales Homes in 2026

Based on a typical 3-bedroom home in New South Wales · Updated April 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. The NSW Empowering Homes program also provides interest-free loans for eligible households installing solar-battery systems.

What we modelled — how we calculated these results

3-bedroom home, ~18 years old
State: NSW
Electricity: 36c/kWh
Feed-in tariff: 5.0c/kWh
Gas: 4.5c/MJ
Gas usage: ~13,009 MJ/year
Electricity usage: ~6,296 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

Solar + Battery

Pays for itself in 4.5 years, then saves ~$3,887/year.

$13,505
Profit
Net cost
$18,084
Payback
4.5 yrs
15yr savings
$63,189
2

Electric Vehicle

Pays for itself in 3.1 years, then saves ~$2,265/year.

$10,959
Profit
Net cost
$8,250
Payback
3.1 yrs
15yr savings
$35,707
3

Heat Pump Hot Water (gas switch)

Pays for itself in 4 years, then saves ~$575/year.

$2,997
Profit
Net cost
$2,475
Payback
4 yrs
15yr savings
$11,567
4

Induction Cooktop

Pays for itself in 3.1 years, then saves ~$187/year.

$2,698
Profit
Net cost
$1,400
Payback
3.1 yrs
15yr savings
$8,660
5

Smart Home Energy Management

Pays for itself in 5.5 years, then saves ~$145/year.

$471
Profit
Net cost
$2,000
Payback
5.5 yrs
15yr savings
$5,061
6

Draught Sealing

Pays for itself in 2 years, then saves ~$117/year.

$374
Profit
Net cost
$200
Payback
2 yrs
15yr savings
$1,042
7

Insulation

Pays for itself in 7.9 years, then saves ~$194/year.

$41
Profit
Net cost
$1,700
Payback
7.9 yrs
15yr savings
$3,615

Portfolio summary

$34,109
Total investment
$128,839
Total savings (15yr)
$31,044
Net profit

Below market returns at this time horizon

These upgrades still save money on energy bills, but the return doesn't beat the 10% stock market benchmark over 15 years. They may become worthwhile with a longer holding period.

Battery (add-on)
Below benchmark by $6,298

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, Solar + Battery is the highest-return upgrade with a net profit of $13,505 over 15 years and a payback period of 4.5 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 $128,839 over 15 years, with a total investment of $34,109 and a net profit of $31,044.
What electricity rate does New South Wales pay in 2026?▾
We modelled New South Wales homes at 36c/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. Solar + Battery, 2. Electric Vehicle, 3. Heat Pump Hot Water (gas switch), 4. Induction Cooktop, 5. Smart Home Energy Management, 6. Draught Sealing, 7. Insulation. 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