Energy bill pressure stimulates investment intentions primarily for high-socioeconomic households in Australia

Energy bill pressure likely motivates household investment intentions, but influences could vary based on socioeconomic characteristics. A first possibility is that low-income households, who are more likely to be affected by energy bill pressure, may be more motivated than high-income households to make energy investments. A second possibility is that low-income households may be less likely to intend to invest due to barriers such as perceived unaffordability. We use Australian household survey data from 2017 to 2023 to assess influences of energy bill pressure on intentions for four investments: home batteries, electric vehicles, solar photovoltaic panels, and solar hot water systems. While the first possibility above is commonly mentioned, we instead find that energy bill pressure has a consistently lower influence on intentions for investments by households with a lower socioeconomic status. This finding is consistent across the four investment types. It is also consistent across a range of socioeconomic variables. Our results suggest that policy design should change to give disadvantaged households enhanced opportunities for investments while being responsive to variances in state and territory policies. Our results especially align with policy enhancements helping renters and households with low levels of assets.