Money
Big guzzlers: 3 things you're doing that are racking up your energy bill

You might be surprised which home essentials are costing you most – and how easy it is to cut them back without giving up comfort.
By Bron Maxabella
Whether it’s warming your home in winter, enjoying extra-long showers, or keeping the fridge full for family visits, certain everyday habits can quietly rack up your power bill.
The top 3 energy-guzzlers in the average Australian home are:
- Ducted reverse cycle air conditioners
- Hot water systems
- Fridges and freezers
In fact, together these juice drainers are responsible for the majority of your energy costs.
Which is actually good news as it means that by focusing on reducing your consumption in just 3 areas, you can significantly cut your bills – all while keeping your home just as comfortable.
Let’s delve a little deeper into each area to find the most effective ways to save.
Bonus tip: Compare your energy rates to make sure you’re getting the best deal.
1. Using your heating or cooling inefficiently
Blasting the air con or heater? You could be burning through your budget too.
Let’s face it – Aussie summers can be scorchers and winters can pack a surprising chill, especially in the southern states. So it’s no wonder that, depending on where you live, heating and cooling account for 20% to 50% of the energy used in Australian homes. Yes, that’s a big range – the way we use (or overuse) these systems can really make a difference.
Cranking the air con to full Arctic in January, or setting the heater to toasty tropical in July, puts serious pressure not only on your system – but on your wallet. And if your home isn’t well insulated (hello, draughty windows and paper-thin walls), too much of that precious warm or cool air is escaping before you’ve even had time to enjoy it.

Even worse? Leaving the air con or heater running while no one’s home. It might feel nice to walk into a cool house, but it comes at a cost. Sustainability Victoria reports that it’s a myth that running your air conditioner 24/7 will lower your running costs. “It is far cheaper to turn the air conditioner off while you are out of the house or overnight while sleeping, and on again when you return or after the house warms up during the day,” they advise.
As for an efficient temperature, the CSIRO suggests setting your system to the highest value that is still comfortable (26°C during the day and 22°C for sleeping at night is often recommended) – and make use of timers, zoning or smart thermostats if you have them.
The real key is to keep the heat or cold out in the first place:
- In summer, shut your blinds and windows before the heat of the day creeps in. In winter, open those blinds to let the sun naturally warm your space.
- Pop a draft stopper at the bottom of external doors to keep the outside temperature from sneaking in.
- If you’ve got the space, plant some leafy trees near your windows – deciduous ones are great because they give shade in summer but still let the sunshine in during winter.
- Add retractable shades (especially on the north and west sides of your home) to help block the harshest sun in summer or let it in during winter.
- And on scorching days, skip the oven – you’ll just further heat up the house. Use a more energy-efficient air-fryer instead.
Boosting your ceiling and wall insulation and window glazing and sealing can also make a world of difference to keep your home comfy year-round. It will reduce your energy bills in the long run, but does require money upfront to install.
2. Check your hot water system
No surprises here, your hot water system is one of the biggest energy guzzlers in your home – second only to heating and cooling. For most Australian households, that equates to between 15-30% of your energy bill. So keeping your hot water system in good shape can make a noticeable difference to your energy bills.
Regular servicing by a licensed tradesperson ensures your system is running efficiently, safely and not working harder than it needs to. Over time, sediment can build up, valves can wear out, and small issues can quietly turn into costly problems. A quick check-up can extend the life of your system, reduce your energy use and give you peace of mind that you’re not paying more than you should for every shower, wash and laundry load.
Here are more ways you can make your hot water system more efficient:
Turn down the temp
By Australian law, hot water storage systems for homes must be heated to a minimum temperature of 60°C, to prevent the growth of bacteria that can cause harm to people. Any higher than that means you’re using energy unnecessarily.
Use the sun
It’s expensive to install a dedicated solar hot water system (though rebates are available) and it may take years to see the bottom-line benefits. Fortunately, you can get a similar result by running an electric hot water system from your general solar supply.
There are a couple of great ways to make the most of your solar power when it comes to heating your water – even if you don’t have battery storage.
- Use a timer: One option is to pop your hot water cylinder on a timer so it heats up during the day, making the most of your solar power while the sun’s out. Do check that this strategy is worth it for your setup, especially on cloudy days when you could end up paying peak rates to heat your water.
- Install a diverter: Another smart solution is a hot water PV diverter, which automatically sends any extra solar energy straight to your electric hot water system. It’s a clever way to cut your reliance on grid power – and under the right conditions, it can save you money and store energy more affordably than a battery.
Switch to a low-flow shower head
Showers are where your hot water gets the biggest workout – and your energy bill feels it. A good low-flow shower head uses far less water but still feels fabulous. When shopping, look for a 3-star rated showerhead with a high water rating and a low flow rate (yep, the lower the flow, the bigger the savings). You may be able to get a state-based rebate for purchasing a water-efficient showerhead – check here.
Keep showers short and sweet
We all love a long, steamy shower – but if you're in there long enough to sing, say, Don McLean’s American Pie from start to finish, it's time to cut back. Try aiming for a 4-minute or shorter shower. Keeping a waterproof timer in the shower (like this cute one) can help you keep track.

Wash clothes in cold water
Unless your clothes are extra grubby, cold water generally gets the job done – and it's much kinder on your fabrics and your energy bill. Bonus: your favourite top won’t fade as fast.
Fix that pesky drip
A dripping hot water tap isn’t just annoying, it’s pouring dollars down the drain. A quick fix can save hundreds of litres and the energy it took to heat them. That’s no exaggeration, just watch how fast your dripping tap fills a bucket…
Wrap your hot water pipes in a cosy jumper
Okay, not an actual jumper – but insulating your exposed hot water pipes (especially the ones outside) helps stop heat escaping. Look for closed-cell rubber insulation at your local hardware store. It’s a quick job that makes a difference.
3. Cool your fridge and freezer use
Your fridge and freezer are on 24/7, making them the third biggest energy user in your home (around 13% of your energy bill). But a few small tweaks can make a big difference to your energy bill.
- Give it space: refrigerators and freezers need airflow to operate efficiently. Leave a gap of at least 5cm around all sides of the fridge and don’t place your fridge near the oven or in direct sunlight.
- Check the temperature settings: the lower you set the temperature, the more energy your fridge and freezer will use. According to the CSIRO your fridge should be set between 0-5°C (with 3°C being ideal) and your freezer at -18°C. Any colder and you’re wasting energy without gaining much benefit.
- Give the door seals a once-over: if they’re loose or cracked, cold air escapes and your appliance works harder (and uses more power) to stay cool. You can test the seal by closing the door on a piece of paper, if it slips out easily, it might be time for a replacement.
- Keep it shut: constantly opening the fridge or freezer door allows warm air inside, which means the thermostat needs to crank up to maintain the set temperature. This drains energy and costs you money. Instead, think ahead about what you need and try to get everything in one go.
- Say no to seconds: sorry, but your ‘beer fridge’ is costing you plenty, especially if it’s an older-model fridge cranking away in the heat/cold of your uninsulated garage. Fridges operate best when they’re at least 3-quarters full, so maybe you can find room in your ‘everyday fridge’ after all?
Finally, if your fridge is more than 10–15 years old, it might be worth upgrading to a newer, energy-efficient model. The upfront cost often pays off in long-term savings.
Have we missed a top tip? Let us know in the comments.
Feature image: iStock/shurkin_son
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