Ace Business Desk – In summary, Energy Minister Chris Bowen is urging community groups across Australia to apply for grants to assist residents with installing electrical appliances. He believes this initiative will help lower power bills and reduce emissions. He also criticised the opposition’s energy plan, labelling it a “nuclear fantasy.”
What’s next?
The expansion comes after “encouraging” results from a pilot program in NSW.
The federal government is pushing ahead with its renewable energy investment by expanding a scheme that subsidises property owners who are decarbonising their homes.
Climate Change and Energy Minister Chris Bowen has asked the Australian Renewable Energy Agency (ARENA) to make further funding available for electrification programs.
Last year community group Electrify 2515 was awarded $5.4 million in subsidies for residents in the New South Wales Illawarra region to buy electric appliances for their homes.
So far, 400 households – about 20 per cent of which are low-income – have signed up to the scheme.
“The early signs from that project, that pilot have been so encouraging,” Mr Bowen said.
“Ten per cent of the residents, 2515, have applied to be part of that project.”
The move opens the door for other community groups across the country to submit electrification proposals to ARENA, which will then assess their viability.
‘Alternative’ to ‘fantasy’
The scheme’s expansion was part of a deal with crossbench MPs David Pocock, David Van, Jacqui Lambie, and Lidia Thorpe last year to pass its Future Made in Australia laws.
“In this cost of living crisis, one of the highest impact, non-inflationary things governments can do is help households electrify and deliver thousands in permanent power bill relief,” Senator Pocock said.
It is the first time Mr. Bowen has used his ministerial powers to direct the agency about what projects it should be funding.
The announcement comes months out from a federal election in which the major parties will be making their pitches about the future of Australia’s energy mix.
The Opposition has vowed to scrap Labour’s emissions reduction targets and some energy projects, including offshore wind farms, while promising to forge ahead with its own nuclear ambitions.
“There is an alternative to this, which is to stop all of this and to go down a nuclear fantasy,” Mr Bowen said.
“But we’re not going to be distracted by that.”
Chris Bowen with Canberra resident Catherine Dan, who says she is seeing the benefits of electrification. (Supplied)normal
Bills ‘down 70 per cent’
Under the scheme home-owners apply through a community organisation to obtain grants for replacing their gas appliances such as hot water heaters and stovetops with electric alternatives.
The grants are means-tested and can amount to as much as $10,000 per household.
The scheme can also access low-interest loans for electric vehicles, solar panels, and batteries.
The CSIRO estimates that electrified households can save more than $2,000 a year on power bills.
Canberra home owner Catherine Dan recently converted her appliances and said she was already seeing the cost benefits.
“It has been a good change and has saved us money,” she said.
“In the first two years, our bills went down 70 per cent.”
Saul Griffith says communities will save about $20m annually by going electric. (ABC Illawarra: Justin Huntsdale)normal
‘It will save you money’
The architect of Electrify 2515 is Saul Griffith, who is confident that expanding the program is one of the best ways of reducing emissions and slashing power bills.
“We are already seeing it in Electrify 2515, but having these projects across the nation will really accelerate building the future electrical grids,” he said.
“They are going to lower our costs, increase the reliability, and be our future energy system.”
Dr. Griffith said the Electrify 2515 group had worked hard to build trust with the community and develop confidence in the project.
“I think we are all a little reluctant to change,” he said.
“The high adoption rate we are seeing is because we are creating a level of trust and a level of social acceptance.
“This is a good thing to do. It will save you $2,000 a year for electrifying your house and another $3,000 a year if you are electrifying your car.”
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