Household Electrification Guide

Locking in savings

Did you know that electrifying a home and vehicle will save the average Australian household about $5,000 every year (and reduce household emissions close to zero)?

This is because conventional fuels like gas and petrol are both polluting and expensive. An electrified home means replacing your fossil fuel based machines (eg. hot water system, space heater, cooktop and car) with efficient, electric versions powered by renewable energy such as rooftop solar, battery and/or 100% green power.

Electrifying your home does not have to happen over night, but having a plan helps you make smarter decisions.

Source: Rewiring Australia

In Australia we have access to the cheapest home energy in the world - our rooftop solar. We are the sunburnt country after all.

Over its lifetime rooftop solar costs about 3 cents per kWh, cheaper than any other source of home energy. Combined with a home or community battery it's still cheaper than the grid. When the grid becomes renewable you can use it for backup too, but the cheapest energy will always come from your roof.

Source: Rewiring Australia

Electrification is efficiency

The cost of sending that energy over powerlines alone is more than the cost of the energy that comes from your roof. The best option is to power as much of your home off solar as you can and use efficient electric appliances.

And they are cheaper to run.

They are more efficient, use less energy and are anti-inflationary.

So it’s time to save money and make sure you are part of the solution.

It’s time to power up

Over 40% of Australia’s domestic emissions come from the decisions we make around our kitchen table - how we travel around, how we cook and how we heat our water and home.

Electrifying your home and vehicle will save the average Australian household around $5,000 every year (and reduce household emissions close to zero)!

How to electrify your home

 
  • Electrifying your home will save you money in the long-term as the running costs are significantly lower. However it can be expensive to install (this is why we’re lobbying the government to subsidise and support all households to electrify). The good news you don’t have to do it all straight away so make a plan for which items you will get started first.

    You can download the City of Yarra ‘Go Electric’ Plan here.


    A plan may look like this:

    • Now: Install solar panels

    • This year: Replace gas hot water system with an electric heat pump.

    • Next year: install a reverse cycle air conditioner to heat your home and an induction cooktop. Perhaps replace your second car with an electric bike or subscribe to an electric car sharing service (eg. Evee).

    • Within 3 years: Install a home battery.

    • Within 5 years: Buy an EV.

      Planning to finance it
      Of course if you have the savings, you can go ahead and purchase most items today.

      Other options to consider include:

    • Understand what government rebates and support are available.

    • Talk to your existing lender to add it to your mortgage.

    • Talk to your existing lender to see what green finance products they offer.

    • Explore specialist ‘green’ lenders such as:

    Note: Everyone’s situation is different and we are not financial advisers or providers so can’t give advice. Check with your Accountant or Financial Adviser as to what is best for you.

    Please write down your plan.

  • Check out our rebates page to know what you are entitled to. For many of the installations (eg. solar, heat pumps) the installer will organise the rebate for you. Not all installers are accredited to claim the rebates so make sure you check beforehand.

  • Australia is lucky to have the world’s cheapest form of energy in our rooftop solar and the average solar system will pay itself back in 3-5 years making it a great investment.

    If solar panels aren’t suitable for your property or circumstance, the next best alternative is to buy 100% Green Power from an energy retailer (we like Diamond Energy, Energy Locals and Amber Energy for their emphasis on renewable energy and community support).

  • The three key home appliances to consider are:

    a) Your hot water system

    Replace your gas hot water system with an electric heat pump to reduce your energy usage by two-thirds. If you have solar power and already have an electric resistant hot water heater, no need to replace it until it is near its end of life but consider adding timers so it heats during the day.

    View our hot water guide here

    b) Your space heater

    Reverse cycle air conditioners (also called split systems or heat pumps) use one-quarter to one-third the energy of other space heaters (and they can be used in summer for cooling) so swap out your gas or conventional electric heaters.

    c) Your cooktop

    Time to get off gas and install an induction cooktop which uses one third the energy, is easy to clean and does not come with the indoor pollutants.

    We encourage you to consider the quality, efficiency and warranty of an appliance when making your selection.

    There are many features that will help minimise the energy use such as timers and wifi (to line up when they’re used with solar production or off-peak tariffs).

    Any good electrician and plumber can also advise you on which products may work for your circumstance so once you have researched what’s available we suggest you connect with a local installer and they can purchase and install for you.

    Other resources include Choice (eg. Air Con Guide), My Energy Efficient Home Facebook Group and Renew

  • Contact a licensed electrician to receive a quote and to evaluate your current electrical panel and wiring. They will determine if any upgrades or modifications are necessary to accommodate the additional electrical demands eg. installing extra circuits. Once you’re happy with your advice and the products, start your installations!

  • Firstly contact your energy retailer and get off whatever gas plan you may be on. Currently you will also be paying a gas connection fee (up to $1/day). Unfortunately you may be charged a disconnection fee. We encourage you to research this topic on the My Energy Efficient Home Facebook Group as there are lots of experiences with people reducing or avoiding this fee altogether.

  • The best way to maximise your electrification is to time your usage to when you are producing solar energy (ie the middle of the day). This can be done via

    a) Behaviour eg. putting the dishwasher on when you leave for work

    b) Timers (especially for your hot water system)

    c) Monitoring technology. There are a range of systems available to monitor and optimise your energy usage, allowing you to maximise efficiency and reduce costs. They can provide insights into energy consumption patterns, offer remote control options, and enable the coordination of energy-intensive appliances with solar power generation.

  • Your single biggest source of carbon emissions and energy costs for every household is your petrol or diesel car. An average household spends over $3000 every year on fuel costs. The cost of driving an EV is 1-2 c/km from your rooftop solar and about 4-6c/km from grid electricity. This compares to 20c/km for driving a typical petrol or diesel vehicle at $2 per litre. Not to mention the thousands of tonnes of carbon emissions internal combustion engine vehicles emit.

    Check out the Good Car Company for info on buying and selling EVs and Lug and Carrie who offer e-bike subscriptions

  • Installing a battery storage system allows you to store excess solar energy generated during the day and use it during peak electricity demand or when solar production is low. This can increase energy independence, reduce reliance on the grid, and maximize the benefits of solar power. From a pure economic point of view, many people won’t see the cost of the battery paid back in energy savings any time soon, however, you may be motivated to reduce your emissions or reliance on the grid more than pure economic payback. We expect batteries to fall in price considerably over the next few years, and it won’t be long until we all are able to benefit from electric vehicles being able to act as household batteries!

    Solar Quotes and Solar Calculator have solar battery calculator that may help you investigate if a home battery is for you.

  • You will be enjoying the savings of $3000 - 5000 every year in running your home and helping with the biggest challenge of our time!