Report: Australia has reached the 'electrification tipping point'
A new report ‘The Electrification Tipping Point’ shows the economics in Australia have passed a crucial milestone: buying an electric appliance or vehicle is cheaper than the fossil-fuel powered alternative, even when you consider the upfront costs.
That means buying an efficient, electric appliance is always going to be cheaper than its fossil fuel alternative. It’s a climate solution that’s good for the hip pocket.
The new modelling shows that households who switch to an electric car, solar and electric appliances could save more than $4,000 a year, even when including upfront costs.
The Electrification Tipping Point report has found households using gas appliances and petrol vehicles could save $61,500 over 15 years, or more than $4,000 a year on average, if they upgrade their appliances and vehicles to efficient, electric ones and get their power from a combination of rooftop solar, a home battery, and the existing electricity grid.
This calculation includes the cost of buying and installing the cars and appliances, financed with repayment interest at 5.5 per cent over a 15-year appliance lifetime.
The report shows taking even small steps towards electrifying Australian homes, such as switching from a gas heater to reverse cycle air conditioning could save households hundreds of dollars in just 12 months.
Driving an electric vehicle saves around $1500 per year in driving costs, or $2500 per year if that car is charged with solar.
Upgrading from a gas hot water system to a heat pump hot water heater will save $250 per year on energy bills.
Installing rooftop solar to power those electric appliances and vehicles can save an additional $2200 per year.
The average fossil fuel-powered home that goes fully electric with solar and a battery can save $4,100 per year.
“This tipping point shows Australians can save money on energy bills and cut emissions as soon as they electrify. This is a far better deal than what an energy bill rebate or fuel excise can offer. ”
