Cost-benefit assessment of energy efficiency investments: Accounting for future resources, savings and risks in the Australian residential sector

► High thermal efficiency is a key strategy to limit energy use in buildings. ► Integrated thermal modeling-life-cycle costing methods are applied to dominant house designs. ► The discounting framework is the primary driver of difference in observed costs. ► The selection of optimal performance investment options depends on the discount rate. ► Application of a discount rate of 3.5% or lower favours energy saving projects.