Home electrification: what you need to know

What is home electrification?

Home electrification is the process of moving your home toward being powered only by electricity. From electrifying cooking to heating your water or living space, there are many options available to shift your primary energy source from gas to electricity. Options include:

• Cooking – there are two types of cooktop: gas and electricity. With electricity, you can also use an induction cooktop – a more modern and efficient option. Induction cooktops use a magnetic field to heat up your pots and pans.
• Heating up your space – to replace heaters that rely on burning gas, you can use reverse cycle air conditioners for both cooling and heating. They generate warm air by absorbing heat from the outside air through an outdoor unit and transferring it to an indoor unit.
• Water heating – instead of gas-powered hot water systems, you can use a heat pump hot water system to heat up your water. These systems use the same technology as reverse cycle air conditioners.
• Electric vehicles (EVs) –switching to an EV can help to reduce greenhouse gas emissions, especially if you can use a rooftop solar system to help meet your charging needs. 

What are the benefits of home electrification?

There are several potential benefits to electrifying your home, including saving on your energy bills, reducing your carbon footprint, and, for some, maximising solar power.

Energy bill savings

The move to power your home using only electricity could help manage your energy bill costs, especially if you also have a rooftop solar system.

Many electric appliances can be more efficient than gas alternatives.  For example, a report by Monash University estimates that a gas hot water system can cost three times more to run than a heat pump hot water system.

Lower carbon footprint

For impact beyond your household, electrifying your home can also benefit the environment. The energy saved from using more efficient appliances can help you reduce your carbon footprint. Electricity also allows you to use renewable solar energy. If you have (or install) rooftop solar panels, you can power your appliances using solar energy when the sun is shining (or even at night if you also have a solar battery). 

Maximising solar benefits

You can further maximise the benefits of electrifying your home by running electric appliances (like the dishwasher) during the day to take advantage of your solar generation. If you own or are planning to buy an EV, at-home EV charging allows you to charge your EV using solar during the day.

What are the costs?

While there may be ongoing savings visible in energy bills, replacing your current gas appliances with electric appliances and installing solar comes at an initial cost. It’s important to weigh the upfront investment against the long-term benefits – in terms of both household savings and environmental impact.

You can start by focussing on the ageing gas appliances in your home and plan to replace them with more efficient electric options before they breakdown. For example, if you have an old gas hot water system, do your research to replace it before it breaks and you’re without hot water.

Could I save money if I electrify my home?

Even with the upfront costs, electrifying your home could help you save money in the long run.  AGL’s online tool, Electrify Now, helps you to estimate the potential costs and savings of electrifying your home.

There are also several government policies and initiatives to incentivise your home electrification journey, including loans and rebates.

How you can electrify your home

Upgrading your appliances, renovating your home or building a new one? This is a good time to switch from gas to electric power sources. After you've replaced any ageing appliances, you can look at appliances used for activities that consume the most energy – cooking, hot water, and heating spaces. You don’t have to transition all at once, take your time and do it at a pace that suits your home and budget.