Residential electrification is an increasingly important feature of Australia’s energy system. Electrification has the potential to improve household energy efficiency, reduce emissions from residential energy use and lower energy costs for consumers. Despite the significant opportunities attributed to residential electrification, many Australians face barriers to electrifying their homes. It remains costly with a very long return on investment period. 

Residential electrification describes the replacement of household appliances powered by fossil fuels with energy efficient electric appliances, such as induction cooktops, electric water heaters and reverse cycle air conditioners. Often, residential electrification is combined with the installation of so-called consumer energy resources which allow households to generate and store clean energy, such as rooftop solar and battery energy storage.

The report sets out the opportunities of residential electrification, considers the barriers for consumers in electrifying their homes, discusses the appliance standards and building design issues impacting residential electrification outcomes and looks at the impacts of electrification on the energy grid. It provides four recommendations.

Recommendations

1. The Australian Government, in coordination with state and territory governments, should promote households to uptake consumer energy resources, including rooftop solar, home batteries, bi-direction electric vehicle chargers and home energy management systems.
2. The Australian Government, in coordination with state and territory governments, should prioritise investment in technologies that extend and improve the system value of rooftop solar, such as home batteries and home energy management systems.
3. The Australian Government, in coordination with state and territory governments, should prioritise how community batteries can spread the benefits of rooftop solar to consumers who are unable to install their own systems, such as renters, apartment dwellers or low-income earners.
4. The Australian Government and state and territory governments consider cost-effective local tuition for apprentices, such as electrical apprentices.