Australian households and businesses could save more than $7 billion a year in total on power bills by improving their energy efficiency.
An Energy Efficiency Council report released on Wednesday has also found Australia could meet half of its commitment to reduce greenhouse emissions by 26 to 28 per cent by 2030 if global energy efficiency practices would be adopted.
Successful overseas policies include strengthening energy efficiency standards for appliances, homes and cars, ensuring energy markets work in the consumers' interests and helping businesses cut their bills.
Energy Efficiency Council CEO Luke Menzel said energy efficiency is the best tool to reduce power bills, improve energy security and address climate change.
Adopting existing global standards on energy efficiency would cut power bills and cut greenhouse gas emissions. Source: Getty
"Australia is failing to grasp this golden opportunity - it's like we're walking past $100 bills that are just lying on the ground," he said.
"Australian governments are at the back of the pack on energy efficiency."
In Germany, energy efficiency has cut the average household energy bill by 30 per cent, saving about $790 a year, he said, and Australian households could achieve the same.
In California, 300,000 jobs have been created in energy efficiency, while China saved huge amounts of energy in 2017, avoiding the need for scores of coal-fired power.
"If Australia replicated best practice from places like the United States, Germany, Japan and China it would be a game-changer for energy affordability and the economy," Mr Menzel said.
The study said Australians should see energy efficiency as a form of energy generation.
