When it comes to energy savings, the potential is electrifying

There’s a lot of talk about rising power prices — but here’s the part that often gets missed.

According to the latest Residential Electricity Price Trends report from the Australian Energy Market Commission (AEMC), households that electrify can significantly cut total energy bills – and most upgrades pay for themselves in less than 10 years. 

The AEMC forecasts that electricity prices will continue to edge up over the decade. But electricity prices are only one piece of the puzzle. The real story sits in what the AEMC calls the “energy wallet” – the total cost of electricity, gas and petrol combined. On that measure, electrification is a clear winner.  

Modelling shows that households that go all-in – replacing gas with electric appliances, switching to an EV, and installing solar and a battery – can reduce their annual energy costs by as much as 90 per cent.

I’ve seen this play out in my own home – although our journey has been more opportunistic than planned.

We don’t have gas, so we started with rooftop solar, taking advantage of the long-running federal rebate scheme. The annual savings of $1600 recovered the upfront cost of the system within three years and we continue to have the same yearly savings to our electricity bill now and into the future. 

Two years later, we replaced our diesel car a little earlier than planned, capitalising on the short-lived NSW EV rebate and a wave of more affordable, longer-range models. Charging mostly from our solar panels – and with lower maintenance costs – we save about another $2200 a year.

The house battery was a trickier decision because of the higher upfront cost. But when the federal government introduced the Cheaper Home Batteries program, we took the plunge. It’s given us more energy independence and further reduced what we draw from the grid. 

I’m curious to see the first electricity bill after the battery install. And there’s still the tempting NSW Virtual Power Plant (VPP) incentive to claim if/when we decide which Virtual Power Plant to join.

The AEMC’s modelling backs up what many households are discovering firsthand. 

The annual savings made from electrifying gas appliances typically covers the cost in about seven years. Solar in around six. Batteries in roughly seven. And apparently the payback period is quicker if you can manage to do it all at once.

The report is clear-eyed about barriers — upfront costs, renting, apartment living and charging access — but the economic signal is unambiguous. Electrification isn’t just about emissions anymore. For households that can access it, it’s increasingly a smart financial decision — one that cuts bills and reduces exposure to increases in fuel and electricity prices.

Find out more

 Electrify Illawarra will have a stand at the following community events:

• Saturday, March 14, 10am-2pm: Climate Action Week event at the Science Centre, UOW Innovation Campus
• Sunday, March 29, 10am-2pm, Greenfest Sustainability Expo by Corrimal Rotary at Corrimal High School