What does it mean to set up deep energy upgrades?

Deep energy retrofits involve making comprehensive upgrades to a building's energy systems and structure to significantly improve its overall energy efficiency. This will reduce energy bills and improve comfort. It involves things like:

• Insulating walls, floors, and attics to reduce heat or cooling loss
• Upgrading windows to increase thermal performance
• Upgrading appliances to be more efficient (may include heating & cooling, hot water and lighting)
• Installing solar PV.

Some parts of broad energy upgrade initiatives are common for community energy groups (such as bulk buys or energy audits). However, the biggest financial and environmental gains will be from addressing a whole suite of improvements within a streamlined initiative. Ideally, this would begin with an energy audit to identify opportunities and recommend specific upgrades, then coordinate the delivery of the recommended measures.

Community groups can play a range of roles in such an initiative, depending on the capability of the group and the local supply chain.

Benefits of pursuing deep energy upgrades

Planning a range of different measures at the same time allows several benefits to be realised:

• Less hassle: Installation can be coordinated by a single party, reducing hassle and confusion from the perspective of the household. The complexity of dealing with multiple independent tradespeople with overlapping services is a commonly barrier to the implementation of substantive energy upgrades.
• Bigger impact: More ambitious energy savings can be achieved if bundled together. Solar PV might have a 6-year payback period and lighting 1-year, while more expensive upgrades may take 10-15 years to pay back. It can be more attractive to do everything together an average payback of, say, 6-7 years. Compared with picking off only the smallest, more cost-effective measures, an integrated approach can reduce energy consumption in the order of 30% or more. It can also dramatically improve comfort and property values.
• Integrated finance: Even if cost-effective, access to capital can be a substantial barrier to the implementation of deep energy upgrades. Delivering a package of measures offers the opportunity to provide bundled finance with a single, simple contract.

Some challenges of pursuing deep energy upgrades

Due to the diversity of skills and products that need to be delivered, communities will rarely be able to deliver such an initiative without trusted partnerships with specialised providers. Some specific challenges include:

• Lack of integrated suppliers: In many Australian jurisdictions there are very few suppliers operating a ‘one stop shop’ delivery model for deep energy upgrades.
• Multiple skills or trades are required, such as plumbing, electrical, building or handyman services. This makes it difficult to promote deep energy upgrades via a single supplier partnership.
• Trust: For households or businesses to invest in deep energy upgrades, trust is critical. They must trust that those offering solutions are providing tailored advice, and not just pushing a specific technology or service. They must also trust that the promised bill savings or comfort improvement will be delivered. Community energy groups commonly hold greater trust and stronger local relationships than commercial parties, and thus can be uniquely positioned to provide a coordination and advisory function.
• Inclusivity: some people will find it challenging to engage in energy upgrades. Lower income households will have more limited access to funds, and may not be considered sufficiently ‘credit worthy’ from finance providers. Renters typically do not have authority to participate and require the landlord’s permission and investment, yet landlords do not directly benefit from the bill savings.

When are deep energy upgrades a good choice?

Deep energy upgrades are perhaps the most ambitious delivery option for a community energy group. They may be best suited when there is:

• A lack of integrated suppliers: When local energy upgrade suppliers exist, but no one is offering the range of opportunities available. That is, where you have a market gap.
• Technical capacity: Energy upgrades are not rocket science, but do require some technical understanding of the different opportunities. While the specific roles a community group can play could cary, some capacity within the group to understand upgrade options and communicate the value to households and businesses is likely required.
• Prior referral roles: Community energy groups may already by providing trusted referral services for local solar, hot water service or insulation providers. This provides the primary foundation for a local one-stop-shop coordination role.
• A focus on local jobs: If developing local employment opportunity is a key objective, energy upgrades can provide long-term career pathways.

Project examples for deep energy upgrades

There are relatively few examples of a community pursuing a fully integrated deep energy upgrade initiative.

Heyfield is one such community, in which the Community Resource Centre has a history of delivering energy upgrade activities with strong local uptake and currently provides referral services for local solar PV and hot water service providers. At the end of the MyTown Energy project in 2023, the group is actively developing a reliable network of local delivery partners, alongside a sustainable revenue model to reinvest in equity of access to upgrades for specific demographics within the community.

Related information in MyTown Energy

Arrange Bulk Buys for Solar or Hot Water

Deliver Energy Audits

Install Basic Energy Efficient Products

Sell Basic Energy Efficient Appliances

Facilitate Quotes from Trusted Suppliers

Other guides and resources

Business model co-design example slides for a community facilitated one-stop-shop energy upgrade model, based on the Heyfield experience.

SunSPOT solar and battery calculator - Estimates your system size, the cost, and how much you’ll save (run by the Australian Solar PV Institute)

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