Energy Tips
Electrifying Your Home? Make Sure You Do These Things First
Going all-electric has its benefits, but only when everything is considered beforehand.
Important Points
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Electrification means replacing gas appliances with efficient electric substitutes, like heat pumps, induction cooktops, and solar-powered systems.
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Switching to electric systems like heat pumps could lower household energy bills by hundreds to thousands of dollars annually.
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Combining electrification with insulation, draught sealing, and glazing maximises efficiency and cuts running costs further.
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Rebates and government programs can reduce the upfront cost of efficient appliances, hot water systems, and solar installations.
The average Australian household can save hundreds of dollars per year by switching to energy-efficient appliances. If you’re considering going ‘all-electric’, follow these steps first.
What “Electrification” Really Means
‘Electrification’ refers to the replacement of appliances or systems that run on non-electric fuels (like gas or LPG) with electric versions, things like switching a gas heater to reverse-cycle air conditioning, replacing a gas water heater with a heat pump, using induction cooktops instead of gas, and installing a solar PV system.
It’s not just about being green; many electric appliances are more energy-efficient and have proven they can lower your bills by a significant margin. Now, you might be thinking how could my bill be lower if I’m switching to electric appliances. Wouldn’t it be higher? Not necessarily. Certain appliances account for high energy consumption For example. according to the Australia Government, hot water use is responsible for around 25% of an average household’s energy use. It ultimately depends on what appliances you’re replacing, how efficient they are, and what your usage profile is. The government also notes that going all-electric can cut energy costs by hundreds to thousands of dollars per year, depending on how much electricity you use and whether you already have solar or battery capacity.¹
Why It’s Worth Considering: Key Benefits
Lower running costs over time
Electric heat pumps and efficient electric appliances typically use less energy than gas or older electric systems. Over a few years, those efficiency gains can more than offset the higher upfront cost of new, pricy appliances.
Better indoor air quality and comfort
Removing gas combustion indoors reduces exposure to fumes and pollutants. Electric heating and cooling also allow more precise control of temperature and humidity, making homes more comfortable during peak seasons.
Increased resilience & self-reliance
Solar PV plus battery storage means you can rely less on the grid during outages or peak hours, where the cost of electricity is generally higher. Solar households tend to have more predictable bills, and depending on the amount exported, can negate a majority of the power you purchase from the grid.
Where You’ll See the Biggest Gains First
Hot Water
Hot water accounts for about 25% of energy use in the average Australian home. Switching to heat-pump water heaters instead of gas or traditional electric resistance systems makes a big difference in running costs.¹
Heating & Cooling
Reverse-cycle air conditioning or heat-pump systems (that both heat and cool) are much more energy-efficient. When combined with a well-insulated home, the savings are compounded.
Expert Tip
An analysis by the Climateworks Centre showed that combining thermal upgrades with electrification (including efficient appliances) delivers energy bill savings in the range of $3,700 to $4,700 for “climate-ready” versions of homes, particularly those facing harsh heating or cooling demands.³
Cooking
Induction cooktops heat quickly, are safer, and waste less energy (both in terms of electricity used and heat lost to the surroundings) than gas or inefficient electric cooktops.
Thermal Envelope Improvements
Insulation, sealing draughts, shading windows, and double glazing all reduce how much heating or cooling your home needs. Homes with better thermal performance often need smaller or less powerful heating/cooling systems. In many Australian homes, a combination of electrification with thermal upgrades delivers annual savings of $1,058 to $1,578 in energy bills from the first year.³
How To Begin: Practical First Steps
Prioritise upgrades by impact & cost
Not all upgrades are equal. Replacing a hot water system, which often accounts for up to 25% of household energy use, could save you far more than swapping out a microwave you rarely use. Start with the “big-ticket” items that run daily, like hot water, heating, and cooling.
Once you’ve got these sorted, move on to upgrades that support efficiency across your home, like insulation and draught sealing. These aren’t necessarily “large” moves but they could make every appliance work more effectively. From there, you can plan major swaps like induction cooktops or solar system upgrades. Think of it like building layers of efficiency, starting where the savings are the biggest.
Get familiar with rebates and programs
The cost of electrification is generally the biggest barrier of entry, but rebates can essentially bridge the gap. Both federal and state governments offer schemes to reduce upfront costs for things like heat pump hot water, solar PV, batteries, insulation, and efficient appliances.
For example, under the Household Energy Upgrades Fund, thousands of households can access support for energy-saving upgrades. Some state programs even offer additional discounts on specific appliances or solar installations. Check eligibility early, because requirements often depend on your income, location, or existing setup.
Choose energy-efficient and accredited products
Not all appliances are created equal. When shopping, check the Energy Rating Label, more stars generally mean lower running costs over time. For big appliances like fridges, air conditioners, and hot water systems, purchasing an energy-efficient model can add up to hundreds of dollars saved each year.
It’s also worth paying attention to the installer. An efficient system can underperform (or cost you more) if installed incorrectly. Look for accredited professionals who are experienced in the product type, whether it’s a heat pump, induction cooktop, or solar system. A solid warranty and reputable brand are also worth the extra peace of mind.
Adjust your energy use habits
Even the best technology won’t save money if you use it inefficiently. With or without solar, try running the energy-hungry appliances, like washing machines, dishwashers, or pool pumps, during off-peak hours or during the day if you have a solar system. Spread out usage rather than running everything at once, which can drive up your demand.
Don’t forget the small wins: switching appliances off at the wall to avoid standby power, setting your air conditioner to an efficient temperature (around 24°C in summer, 18–20°C in winter), and using ceiling fans to circulate air. These tweaks won’t cost you anything but can compound into noticeable savings on your next bill.
Common Challenges (and How to Address Them)
Upfront cost
Yes, buying efficient equipment and installing solar/battery systems costs more initially. But financing schemes, rebates, or splitting upgrades over time help. Often, an investment pays off within a few years.
Expert Tip
EM TIP: What incentives, tariffs, and regulations are available differ a lot depending on where you live. Always check your local government and energy retailer information.
Existing infrastructure limits
Older homes may need electrical upgrades (wiring, switchboards), space for solar panels, or structural changes for insulation or window replacement. Be realistic about what’s feasible.
Lifestyle & usage patterns
If you’re rarely home during daylight, solar benefits are less obvious unless paired with battery storage. If you run many appliances simultaneously in peak evening hours, savings require changing use patterns.
For renters
You may not control major infrastructure or appliance choices—but options like efficient plug-in devices, sealing drafts, and negotiating for energy upgrades or landlord cooperation can still yield meaningful savings.
Final Thoughts
Going all-electric is less about a perfect overhaul and more about smart, staged changes. Begin with what hurts your bills most now, often hot water or heating/cooling, and build from there. Pair upgrades with insulation and solar where possible, apply for government programs, and tweak how and when you use appliances.
The long-term payoff could result in a combination of cleaner air, lower bills, and a home that’s future-ready. Even modest steps today can lead to major benefits down the road, both for your household and for Australia’s energy future.
Author
Benjamin TomBenjamin is a utility specialist passionate about creating informative content about the energy, internet, and solar markets. With extensive experience in the telecommunications industry, Benjamin drives our unique blog posts, articles, and reviews. He is focused on breaking down the technical jargon so our readers can better understand the telco market and industry. Whether he is comparing the latest internet deals or creating unique guides, Benjamin takes great pride in creating helpful, easy-to-read content.
Sources:
¹ Australian Government. (n.d.). Electrification. energy.gov.au. https://www.energy.gov.au/households/electrification
² Parliament of Australia. (2024). Executive summary, Residential Electrification — Senate Economics Committee. https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/ResidentialElectrification
³ Climateworks Centre. (2024, August). Renovation pathways: Enabling Australia’s home renovations wave. Climateworks Centre. https://www.climateworkscentre.org/resource/renovation-pathways-enabling-australias-home-renovations-wave
