• Contemporary style house with solar panel. In the car porch there is an electric car.
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What is electrification?

Electrification means switching your home or business to run on electricity instead of gas, petrol, or other fossil fuels. So that everyday needs like cooking, heating, hot water, and transport are powered by electricity. While solar panels and batteries can support electrification and make it even more effective, they are not required to begin your electrification journey.

Benefits of electrification

Electrification can lower overall energy costs across electricity, gas, and petrol while increasing your property value. Switching fully to electricity - backed by solar and a battery - maximises savings, improves energy independence and reduces exposure to volatile fossil fuel prices. It also delivers health benefits by cutting indoor air pollution and significantly reduces your carbon footprint.

Businesses

Businesses of all sizes can reduce energy bills and improve sustainability through electrification. Commercial premises often have higher energy use and more complex requirements than homes. Electrification planning can involve larger systems and more appliances, but the core principles remain the same.

Strata

Electrification of individual units and entire apartment blocks is possible. Some upgrades can be made at the individual unit level, such as induction cooktops, while others—like shared solar systems or EV charging—apply to the whole building. Individual upgrades may require strata approval, and upgrades affecting the entire block typically require agreement from at least 50% of owners.

Common electrification upgrades

Hot water heat pump

Hot water heat pumps work like a reverse refrigerator, drawing heat from the air to warm water. They use significantly less electricity than traditional electric water heaters and can also replace gas hot water, making them one of the most cost-effective ways to reduce household energy use and hot water bills.

Induction cooking

Induction cooktops heat pots and pans directly using magnetic currents, making them around 3 times more energy efficient than gas cooking. They are fast, precise, and safer because there is no open flame or gas combustion, which also delivers health benefits. Induction does require compatible cookware—generally any pot or pan a magnet sticks to will work.

Reverse cycle air conditioning

Reverse cycle air conditioning provides both heating and cooling from a single system. It is highly efficient and can replace gas heating or older, separate cooling systems, reducing energy costs and emissions year-round.

Solar and battery

Solar panels generate electricity from sunlight, while home batteries store excess energy for use when the sun isn’t shining. Together, they help power electric appliances more cheaply, increase energy independence, and make electrification even more sustainable. Click here for more information.

Electric Vehicle (EV) and EV Charger

EVs run on electricity instead of petrol or diesel, reducing fuel costs and emissions. Installing a home EV charger allows you to charge faster and take advantage of cheaper off-peak electricity, while charging with rooftop solar can further increase savings. Click here for more information.

Making a plan

Planning ahead makes upgrades easier and more cost-effective by letting you research the best electric replacements before appliances fail, take advantage of available rebates, and avoid rushed, expensive decisions. It also allows you to prioritise the upgrades that deliver the greatest comfort, savings, and emissions reductions first.

5 steps to electrifying your home or business

  1. Identify the items to transition (check out the transition tips below)
  2. Decide when you will transition
  3. For each item:
    - Estimate savings, costs and government rebates
    - Choose new electric replacement
    - Find an installer and get a quote
    - Complete installation
  4. Repeat above steps for all items
  5. Once all items are transitioned disconnect the gas

Transition tips

You could prioritise by:

  • Age: start with appliances 10+ years old
  • Cost and complexity: begin with items that are cheaper or simpler to replace (eg induction cooktops)
  • Running cost impact: target appliances that use lots of energy or gas (ie hot water, ducted heating)

Incentives to help with cost

There are a range of incentives to help with the cost of electrification, including: 

  • The federal Small-scale Renewable Energy Scheme (SRES) provides financial incentives for solar, batteries and hot water heat pumps. 
  • The NSW Energy Savings Certificates provides financial incentives for hot water heat pumps and efficient reverse cycle air conditioners. 
  • Low interest finance is also available via the Household Energy Upgrades Fund.
  • A Fringe Benefits Tax exemption applies to EVs purchased through a novated lease.

Further information