Retrofitting buildings is one of the most powerful tools we have to improve the energy performance of Australia’s ageing building stock.
Considering around 75% of the buildings that will be standing in 2050 have already been built, there’s a growing urgency to make existing structures more efficient, comfortable and sustainable.
A retrofit building project can unlock significant energy savings, reduce emissions and support Australia’s broader transition to a low-carbon future.
While the benefits are clear, the path to retrofit success isn’t always straightforward. Retrofitting presents a unique set of challenges – including technical, financial, regulatory and logistical complexities.
But it also offers one of the biggest opportunities to reshape our built environment for generations to come.
What Does It Mean to Retrofit a Building?
When we talk about retrofitting, we’re referring to the process of upgrading an existing building with modern technologies and materials to improve its energy efficiency, reduce emissions and enhance comfort for those using the space.
What does it mean to retrofit a building, in practical terms? It’s not about rebuilding, knocking down walls or starting from scratch – it’s about working with, and preserving the existing structure and bringing it up to modern performance standards.
Retrofitting preserves the character and integrity of a building, while improving how it performs. This might involve:
- upgrading insulation
- replacing old windows and doors
- improving or replacing HVAC systems
- installing solar panels to generate renewable energy
- upgrading airtightness and ventilation to maintain indoor air quality and prevent energy loss.
Whether it’s a standalone home, apartment block or commercial space, retrofitting is about making existing buildings fit for the future – more sustainable, comfortable and cost-effective to run.
Why Retrofitting is Crucial in Australia
Australia’s built environment is a patchwork of older homes, ageing commercial properties and heritage buildings – many of which were constructed long before energy efficiency was a priority.
These structures often suffer from poor thermal performance, leading to higher energy use, uncomfortable indoor conditions and by extension, increased greenhouse gas emissions.
1. Reducing Emission
Since, buildings account for a significant portion of Australia’s total energy consumption and carbon output, improving the performance of our existing buildings is essential.
Retrofitting plays a central role in helping to reduce emissions and meet national sustainability goals.
2. Supporting National/State-Level Targets
Governments across the country are already taking steps to support this shift.
Victoria, for example, has implemented minimum energy efficiency standards for rental properties, to ensure homes are healthier and more affordable to run.
Energy efficiency grants and retrofit incentives are also being rolled out in various states and territories, encouraging homeowners and businesses to invest in sustainable upgrades.
3. Delivering Long-Term Value
Retrofit building projects are a practical way to meet policy goals, reduce emissions and operational costs over time.
They improve comfort and have the potential to play a pivotal role in Australia’s clean energy transition – all while extending the life of existing structures.
These projects are a necessity for a more sustainable future.
Key Challenges in Retrofitting Older Buildings
The benefits of retrofitting are clear. But at the heart of the matter are the challenges it presents. There are several hurdles which can complicate the process, when dealing with older buildings.
1. High Upfront Costs
One of the most common barriers to retrofitting is the initial cost. Energy upgrades, like insulation, HVAC improvements or solar installation, can require a significant upfront investment.
These upgrades can deliver long-term savings (through reduced energy use and maintenance). But the payback period can feel distant for building owners with tight budgets.
Creative funding models, government incentives and long-term thinking can play a role in moving past this roadblock.
2. Technical Complexity
Older buildings often present their own set of technical puzzles. Many have been built with non-standard construction (methods or materials), have heritage protections (which can present strict limitations on what can be modified) or lack detailed plans.
Integrating modern energy systems—like efficient HVAC, smart controls or airtight insulation—into these buildings requires careful planning, specialist knowledge, and often, some creative problem-solving to maintain function and form.
3. Skilled Labour Shortages
As demand for retrofit building projects rises, Australia faces a shortage of skilled professionals who understand both traditional construction and modern energy technologies.
Designers, engineers and tradespeople with retrofit expertise are in short supply, which can limit project timelines and outcomes.
To build the workforce we need, government, industry, TAFE and universities may need to collaborate more effectively – such as through investing in training programs, and apprenticeships focused on sustainable building practices
4. Disruption to Occupants
Unlike new builds, retrofits are often carried out while people are still using the space. Think: family homes, offices and apartments.
That can mean residents have to deal with noise, dust, restricted access and interruptions to heating or cooling systems.
Minimising disruption requires proactive planning and clear communication between builders, building owners and occupants. Staging work, using low-impact methods and maintaining safe, functional spaces during construction can go a long way in reducing these impacts.
5. Compliance with codes
Retrofitting work must align with the National Construction Code (NCC) and local building regulations. Upgrading energy systems, insulation, windows or other structural elements may trigger requirements under current standards, even if an original building pre-dates them.
Managing upgrades for existing buildings while supporting compliance can be complex. Engaging building certifiers and energy consultants can be invaluable in this regard, to identify compliance pathways and reduce risk.
The Benefits of Retrofitting Buildings for Energy Efficiency
We’ve briefly touched on the benefits of building retrofits on energy efficiency, but let’s cover this in a bit more detail. A well-planned building retrofit, in this context, can deliver immediate, long-lasting value for owners, occupants and the environment.
Here’s what makes energy retrofits a smart investment.
1. Energy Savings
One of the most compelling benefits is reduced energy use. Upgrades like efficient lighting, better insulation, high-performance glazing and modern HVAC systems all help lower heating and cooling demand.
The result? Significantly lower utility bills and operating costs over time.
2. Improved Comfort
Retrofitting helps create more comfortable indoor environments. Better insulation and air tightness reduce drafts, while upgraded ventilation systems improve air quality.
These changes support consistent indoor temperatures – enhancing comfort year-round, especially in Australia’s variable climate.
3. Increasing Asset Value
Energy-efficient buildings are increasingly in demand. Eco-conscious buyers and tenants are actively seeking properties that support sustainability. A retrofit can boost market appeal, future-proof an asset and support higher resale, or rental values.
4. Better Environmental Impact
Retrofitting helps to cut carbon emissions by reducing a building’s reliance on fossil-fuel-based energy. For property owners and developers looking to adapt to Australia’s emissions reduction targets, retrofits are a practical, measurable way to make a difference.
5. Health and Productivity Gains
Indoor environmental quality matters. Particularly in the commercial sector, studies show well-ventilated, thermally-stable buildings are linked to human health and productivity. That is: fewer sick days, better concentration and performance. For workplaces, schools and rental housing, this can be a major benefit.
Retrofitting in Action: What It Looks Like in Australia
Across Australia, retrofit building projects are gaining momentum – helping homeowners and commercial property owners reduce energy use and improve building performance.
In homes, common retrofit solutions include:
- sealing air leaks around doors and windows
- adding insulation during renovations
- replacing older lighting and appliances with more energy-efficient models
- adding/upgrading solar PV and hot water systems
- double glazing and window film upgrades (for better heating and cooling).
A few of these solutions (solar PV panels, heat pump/solar hot water systems, insulation) are being widely adopted, and supported by initiatives like Solar Victoria and the ACT’s minimum energy standards for rental properties.
Developers are also implementing strategies to improve temperature stability, such as concrete slabs and brick walls, to reduce reliance on heating and cooling systems.
It’s important to note, these solutions aren’t limited to residential properties, but commercial building retrofit projects too.
Commercial retrofits, such as HVAC upgrades, smart energy controls, and building envelope improvements, are a meaningful way to lower costs and meeting ESG goals.
Tips for Planning a Retrofit in Australia
If you’re preparing to retrofit a building, proper planning is essential.
- Start with a professional energy performance assessment or audit – this will help you understand where energy is being lost and what upgrades will deliver the greatest impact.
- Prioritise insulation and air sealing early in the project – as these foundational improvements boost comfort and efficiency across all seasons.
- Take advantage of renovation opportunities – to upgrade thermal elements like walls, floors and roofing.
- Don’t overlook windows – opt for high-performance glazing, and consider external shading to reduce heat gain.
- Install or upgrade solar panels – if feasible, which can further improve energy performance and reduce reliance on grid energy.
- Work with professionals – who understand local building codes, retrofitting standards, rebates and environmentally sustainable design (ESD). Expertise can support your project in compliance and cost-effectiveness.
Unlock the Potential of Your Building Retrofit
While retrofitting is not without its challenges, the benefits can outweigh the barriers. Consider the value of strategic planning, support from government incentives and expertise from skilled professionals to make the process achievable and rewarding.
Whether you’re working on a home, rental property or commercial space, every retrofit is a step toward a more sustainable Australia.
Motivated to make your next retrofit a success? Book a consultation with our experts today to take the first step toward a smarter, more energy-efficient building.
