With another hot Aussie summer looming, for many Australians, heat is no longer just a matter of comfort, it’s a test of resilience. More frequent heatwaves and mounting grid pressures have exposed a simple truth: Too many of our homes aren’t built for the climate we live in.

The Clean Energy Council’s report shows Australians are responding where they can. More than 115,000 rooftop solar systems and a record 85,000 home batteries were installed in the first half of 2025. Rooftop solar now generates nearly 13% of the nation’s electricity, double the share in 2020. It’s a remarkable grassroots energy transition.

However, panels and batteries alone won’t keep homes habitable in 40°C heat. Without smarter ways to manage energy, we risk locking ourselves into a cycle of over-reliance on air conditioners that strain both wallets and the grid. For 60% of Australians, they saw electricity bill increases in 2024, averaging an increase of 17%, underscoring the urgent need for homes that are not just energy-generating, but energy-smart, according to the Telsyte Australian Smart Home Market Study 2024-2028.

The next frontier: Smarter, future-ready homes

Future-ready, automated smart homes go beyond generation. They integrate solar, batteries and electric vehicles with smart automation to adapt to the weather, the time of day and even shifting energy prices. Cooling systems can pre-chill during off-peak hours, blinds can lower automatically in the afternoon sun and energy management tools can track and optimise usage in real time.

A widening divide

The risk is that access to these technologies remains uneven. Many renters, older Australians and those in low-income suburbs face the brunt of rising heat stress without solar, storage or automation. Meanwhile, new housing stock still lags behind best-practice energy standards. Without intervention, Australia faces a widening divide between homes that can handle the climate and those that can’t.

Despite this, Telsyte’s research also found that electrification is accelerating: 41% of households with gas appliances plan to switch entirely to electric and 17% expect to be fully electrified within five years. In addition, 32% of solar households are already interested in joining a Virtual Power Plant (VPP), allowing their home batteries to help stabilise the grid, an early signal of a more participatory, decentralised energy future.

Policy must catch up

Governments have a crucial role to play in accelerating the shift. Stronger minimum standards in the National Construction Code, targeted incentives for retrofits and programs that bring renters and social housing tenants into the clean energy transition are all overdue. If we fail to act, the health, equity and economic costs of heat stress will only grow.

Through smart home technologies, energy management systems and partnerships with builders, governments and communities, Schneider Electric is enabling more households to access the benefits of electrification and automation. Its goal is to make future-ready homes not just a vision, but a practical reality. One that’s inclusive, resilient and tailored to the way Australians live.

A national opportunity

After more than a century inside Australian homes, Schneider Electric has seen how households adapt to change, from the first electric fittings to today’s integrated systems. That experience shows one thing clearly: The homes that embrace innovation are the ones best prepared for the future.

If we get it right, the homes built today will keep Australians cooler and more energy secure, proving that resilience can be designed into everyday living.

By Schneider Electric chief executive of Clipsal and vice president Chris Kerr.