Canberra suburb to go all-electric in new household electrification pilot

Mr Bowen made the announcement at the Giralang home of Kathryn Dan on Tuesday, January 28, who recently renovated her home to be more energy efficient by installing insulation, double-glazed windows and switching from gas to electric appliance.

Ms Dan said the upgrades to her home, which would be similar to those funded in the initiative, cost $20,000 as part of a renovation but saved the household $2000 a year in running costs.

The announcement is modelled on a community-driven initiative in the northern suburbs of Wollongong, which seeks to electrify an entire postcode.

Mr Bowen has written to the Australian Renewable Energy Agency to direct the green bank to consider funding similar projects around Australia.

"ARENA pilot projects supporting home electrification will help create valuable insights into how households can transition to renewables and smart energy systems to cut energy costs and reduce emissions," Mr Bowen said.

The funding could go towards installing electric appliances, such as electric heaters and hot water systems, as well as household energy infrastructure, such as solar panels and batteries.

Mr Bowen said ARENA would be looking for community groups similar to those in the Illawarra, to put forward submissions for "accelerator suburbs" that would attract federal funding.

"What we're really doing today is saying to communities here in the ACT and elsewhere, whether it's Electrify Canberra or other really passionate groups, come and give us your best shot, give us your proposal."

Suburbs that are early would then become a test bed for further regulatory changes to encourage electrification at scale.

In 2024, ARENA funded the Wollongong project to the tune of $5.4 million to pay for the installation of electric appliances to understand how to spread the process more widely and what changes might be needed at a grid level.

The funding enabled households to overcome initial cost hurdles and ensure that low-income households and renters could be part of the scheme.

Co-founder of Electrify Canberra Amy Blain said the group had tapped into enthusiasm across Canberra for the ACT's first all-electric suburb.

"We've got a photo board where you've got all the suburbs of Canberra, and we've got people from so many of those suburbs who are like, 'can it be us?'"

But, Ms Blain said the group would be looking for the suburbs with more renters, apartments and low-income households where the additional funding would make the greatest difference.

"It'll be looking at what makes sense, so that we can make sure that we're framing it so makes the most sense for what Canberra needs."

The new direction to ARENA is a result of negotiations between Mr Bowen and the cross bench, including independent ACT senator David Pocock and senator Jacqui Lambie.

Senator Pocock had campaigned for the scheme to come to Canberra, and analysis commissioned by the senator from the Parliamentary Budget Office found it would cost $11.3 million for a trial of 1000 Canberra homes.

Canberrans could save thousands through cheaper energy bills if they switched from gas to electric, modelling by Rewiring Australia found.

"In this cost-of-living crisis, one of the highest-impact, non-inflationary things governments can do is to help households electrify and deliver thousands in permanent power bill relief," Senator Pocock said.

"Globally, the built environment accounts for 39 per cent of energy-related carbon emissions, so electrification will also have a huge impact in our efforts to combat climate change."

Co-founder and chief scientist at Rewiring Australia Saul Griffith said the initial feedback from the trial in Wollongong, where 10 per cent of the suburb had signed on, indicated the greatest challenge was ensuring trust between the community and project proponents.

"I think so many people get yet another ad for rooftop solar and they're over it and don't know who to trust anymore," Dr Griffith said.

"Which of the tradies are going to do a good job, which can should I get, what stove-top should I get?"

"The high adoption rate we're seeing is because we're creating a level of trust."