Australian households could drastically reduce their energy bills and cut domestic emissions by around one third before 2030 through electrification, according to a report released by a new energy think tank.
Rewiring Australia’s inaugural report, Castles and Cars: savings in the suburbs through electrifying everything presents new modelling which shows electrification can save the average household $5,000 on power and the cost of owning cars and appliances by 2030.
This would be achieved by replacing conventional cars and appliances with electric vehicles, solar, batteries and efficient appliances such as heat pumps for hot water, heating and cooling.
Australia is already the world leader in rooftop solar, boasting around three million solar households, with the authors of the report believing this gives the country a head start in electrification.
The report argues that Australia could consolidate its solar lead and drive rapid decarbonisation by:
- Increased adoption of solar and increase of average rooftop solar size
- Widespread adoption of batteries, with smart Virtual Power Plant capabilities
- Subsidies for EVs and charging networks
- Swiftly replacing carbon intensive devices such as gas heaters, cooktops and gas water heaters with efficient devices such as induction hotplates and heat pumps; through the point of purchase rebates
The report predicts that cumulative public investment could peak at $12 billion in 2025, before delivering savings of $40 billion per year by 2030.
The founder of Rewiring Australia, Dr Saul Griffith, is the co-founder of Rewiring America, a key architect of the Biden administration’s electrification agenda and winner of the prestigious Macarthur Fellowship.
“The future looks like vastly cheaper energy, better homes and nicer cars,” Dr Griffith said.
“No nation is better placed to seize this opportunity for cheaper energy, self-reliance and cleaner air than Australia.
“Australians already lead the world in harvesting solar electricity. Now we have the technology available to use it. With modest public investment in our homes, cars, and communities, we can electrify everything without sacrificing our way of life.
“If we embrace this shift now, we can enjoy cheaper, cleaner, healthier energy, and win the global decarbonisation race.
“It is now well understood that the vaccine for climate change is electrification. As with COVID, we do better by going hard and going early. Australian households will save on energy and money with this electrification vaccine.”
Electrification of households would reduce domestic emissions by around 33 per cent, and this could be achieved by 2030, which means Australia could pledge a higher 2030 target at the Glasgow climate conference.
The modelling uses published data that predicts dramatic cost reductions in battery, EV and efficient electric appliances.
Dr Griffith and his co-authors project that the finance and running costs of a ‘rewired’ home will soon be cheaper than one with a petrol car and conventional gas and electric appliances.
Millions of households are already saving with solar, storage and electric appliances, with the report predicting that electric homes, appliances and vehicles will be the cheapest option by mid-decade.
Home electrification of Australia’s housing stock could be an economic win for all households, with the authors encouraging governments to develop workforce capacity, industrial supply chains, and grid integration immediately; to enable Australia to lead the world in decarbonising.