How Going All-Electric Could Save Your Household Thousands

How Going All-Electric Could Save Your Household Thousands

Climate

by Christina Karras

Australians are starting to embrace all-electric kitchens. Kitchen in Silvermoon Shack. Photo – Eve Wilson for The Design Files

Research from Rewiring Australia shows households are responsible for the largest portion of Australia’s domestic emissions.

This also means making the switch to electric appliances — that can be powered by renewable energy and home batteries like Tesla’s Powerwall — is the best way to combat climate change.

But what does it actually mean to make the ‘switch’ and get off the gas? And what are the costs involved?

Here’s our guide for everything you need to know about turning your home all-electric.

What does going all-electric involve, and why is it important?

For Australia to reduce emissions and move away from the finite resource of fossil fuels, we need to transition to renewable energy. And the first step towards powering a home with renewables is through electrification.

Goodbye Gas founder Ben Russell says this starts by assessing what appliances in your home are powered by gas: ‘Typically, these are cooking appliances (cooktop or oven), water heaters (like gas instant or gas storage) and space heaters (like gas-ducted heating, fireplaces).’

Once they are replaced with electric alternatives, such as an electric induction cooktop, an electric hot water heat pump, and electric heating/cooling systems, your home can operate off renewable energy from the grid. Or better yet, you can even generate your own power by installing rooftop solar and a home battery.

How much money can households save by going all electric?

There is an upfront cost that comes with replacing your gas appliances, but ultimately, electric appliances are a lot more sustainable, energy efficient, and just as effective.

The savings vary depending on your location and climate, but a report from the Climate Council affirms it would be cheaper for households in every capital city to be fully electric.

‘By eliminating gas and taking advantage of solar with battery storage, homeowners can avoid increasing gas prices, reduce exposure to fluctuating energy rates, and even earn credits via Virtual Power Plants. Over time, these savings add up, making electrification a smart financial investment.’

‘Households that fully electrify and generate their own renewable energy can typically save anywhere from $1,500 to $3,000 per year — or $125 to $250 per month on energy costs,’ Ben says.

For households on a budget, what are some low-cost ways to start getting off the gas?

You don’t have to spend a fortune to start electrifying your home. ‘Even without upfront investment, small changes can cut emissions and energy bills while paving the way for a fully electric home,’ Ben says.

‘A great first step is using plug-in electric appliances like induction cooktops and electric space heaters, which are affordable and can reduce reliance on gas. If you have existing split systems, you can start using these for heating too.’

Something as simple as switching to GreenPower or understanding your power usage is important too. ‘For example, if you’re using all your gas and electric appliances in the early morning and at night time when you get home, you’re probably paying peak power prices,’ Ben says.

I’m ready to invest a little more money — what appliances should we focus on? 

Ben says it depends on what your priority is. For operating savings, perhaps replace your home’s ducted or hydronic heating, which can contribute to more than half of a home’s energy consumption. ‘Switching to a reverse cycle system has the advantage of cooling, so you can use it all year round, and enjoy long-term savings,’ he adds. The price of a typical split system can start from around $2000.

If you’re looking to take advantage of the large rebates, replacing your water heater may be the best first choice. ‘Hot water is probably the quickest and easiest appliance to electrify, and with around $2000 worth of rebates, this brings the total cost to replace around $2000-$5000,’ Ben says.

Meanwhile, induction cooktops range between $3000-$6000 and depending on the brand, size, and electrical work associated with your installation.

What about if my home is already all-electric — what’s next?

Once you’ve switched your final gas appliance with electric, then it’s time to remove the gas meter from your property. Typically, the gas line and meter need to be removed to avoid paying a daily supply charge to your gas retailer. Goodbye Gas estimates this could save you more than $400 a year.

Typically, the biggest expense in any home electrification journey is investing in rooftop solar panels and a home battery. A commonly sized 6kW Solar PV System costs between $4000 and $6000 in most states in Australia, and a bigger 10kW system costs between $7500 and $10,500, according to Solar Choice.

‘Another misconception is that solar and batteries only work in sunny climates, when in reality solar panels still generate power on cloudy days, and a home battery ensures energy is available even at night,’ Ben advises.

He adds that the biggest advantage of going the extra mile to install a battery is that you can power your house off ‘free electricity’ generated by the sun, generated by the sun which can be used during the day, at night or whenever you need it most. A typical residential solar system without a battery will cover about 30 per cent to 50 per cent of household power consumption. With a solar battery, this can be increased to 80 per cent, or potentially even cover the household’s total power consumption.

The Tesla Powerwall allows you to capture the extra energy and keep it on reserve, ensuring you can keep your appliances running even during a power outage or severe weather. Plus, a special Time-Based Control mode optimises when you use this stored energy to avoid paying peak prices, saving you money over time.

In Victoria, the State Government is offering interest-free loans of up to $8800 to install a solar battery, while the New South Wales Government also has a number of rebates available. It’s best to always keep an eye out for incentives in your state to make installing a battery more affordable.

Discover how you can maximise your energy savings when you install solar and Tesla Powerwall 3 here.

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