High Costs and Rental Barriers Slow Household Shift to Clean Energy, Study Finds
Households are increasingly motivated to reduce energy consumption and help combat climate change, but high costs and rental restrictions are preventing many from adopting energy-efficient technologies, according to a new study by Charles Darwin University (CDU).
The study found that while support for renewable energy is widespread across income groups, affordability and housing tenure remain major barriers to action, particularly for low-income households and renters.
Residential properties account for about 26 percent of global electricity consumption and are responsible for 17 percent of global carbon dioxide emissions, underscoring the sector’s critical role in addressing climate change.
Researchers surveyed residents in Darwin and Palmerston in Australia’s Northern Territory to examine household electricity use, attitudes toward renewable energy, and access to energy-efficient technologies.
Given the region’s tropical climate, air conditioning emerged as the largest contributor to household electricity use, accounting for approximately 45 percent of residential electricity consumption. The study found that 96 percent of respondents owned and used air conditioners, highlighting their necessity in the region.
Despite broad recognition of the importance of renewable energy, the study found significant differences in households’ ability and willingness to invest in clean technologies.
Among low-income households, about 84 percent agreed or strongly agreed that renewable energy is essential for tackling climate change. However, more than half said they were unwilling to pay higher costs for renewable energy.
Middle-income households showed similar attitudes, while more than 80 percent of high-income respondents viewed renewable energy as essential, and about 68 percent said they were willing to pay more for it.
Lead author Riasad Amin, a PhD candidate at CDU’s Northern Institute, said housing tenure also plays a significant role in shaping energy choices.
Only 34 percent of respondents owned their homes, while the remaining participants rented.
“Renters typically have a more limited scope to install efficiency upgrades, modify cooling systems, or invest in residential energy technologies,” Amin said.
“In Darwin’s tropical climate, where cooling demand is high, these tenure-related differences shape the range of options available to households for managing their energy use.”
The findings showed that 70 percent of homeowners were willing to pay more for renewable energy, compared with 47 percent of renters.
Researchers also examined seven common energy-saving practices. While renters were more likely to switch off appliances when not in use, homeowners were more likely to adopt other energy-efficient behaviors, including washing clothes in cold water, using high-efficiency appliances, and setting air conditioners between 24°C and 26°C.
According to Amin, structural barriers continue to prevent renters and lower-income households from improving energy efficiency.
“Renters and lower-income households face persistent barriers to accessing energy-efficient appliances and undertaking dwelling-level upgrades,” he said.
He added that international research consistently shows landlord-tenant arrangements, limited access to capital, and weaker energy-efficiency standards in rental housing discourage investment in energy-saving technologies.
Amin said policymakers should adopt a more balanced approach when designing energy-efficiency programs.
“Programs that emphasise cost savings alone may overlook important motivational drivers, whereas approaches based only on moral responsibility can disadvantage households with limited capacity to act,” he said.
He noted that international evidence suggests energy-efficiency initiatives are most successful when they combine environmental benefits with practical advantages such as improved comfort, more stable energy costs, and greater household control over energy use.
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