Cost of living pressures and climate change are top-of-mind issues for many Australians. Finding solutions to these challenges can feel daunting, but what if there was a way to address both at the same time?
Australian inventor and co-founder of non-profit organisation Rewiring Australia, Saul Griffith, is advocating for just that.
Speaking at a panel event hosted by CommBank at SXSW Sydney, the entrepreneur and author of The Big Switch says households can reduce their emissions and save money over time by “electrifying everything” and embracing renewable energy.
“We would save $1.7 trillion as a nation by 2050 by going all in on electrification,” he says. “Literally, we save money solving climate change.”
By switching to electric appliances and cars and powering them with rooftop solar panels and a battery, Griffith says the average Australian household could save nearly $4,000 a year on their energy bills.
“The next time your 16-year-old Volvo hits the bucket, that’s a great time to buy an electric car; the next time your water heater goes out … get an electric one,” he says.
To make this transition a reality, Griffith is calling on all Australians to do these five things in the next decade.
1. Install rooftop solar panels and a home battery
Australia leads the world in rooftop solar adoption, with more than 30 per cent of our homes fitted with rooftop solar panels.
Solar is the cheapest source of electricity available1, so running your home on the power of the sun can save you money.
“Solar from a rooftop is 4 or 5 cents a kilowatt-hour,” says Griffith. “The grid is currently selling you electricity at 30 cents.”
A home battery allows you to store any excess energy that you generate and use more of this renewable energy to power your home. And there are a range of government rebates and incentives available to help with the upfront costs.2
2. Replace your gas cooktop with an induction one
If a kitchen renovation is on the cards or your gas cooktop needs an upgrade, consider replacing it with an induction one.
As well as being quicker to heat up and easier to clean, induction cooktops are around three times more efficient and far healthier than their gas counterparts, which can emit harmful contaminants into the air.3
3. Upgrade to a reverse-cycle air conditioner
Heating and cooling combined account for around 40 per cent of the average Australian home’s energy usage, so making the switch to a more efficient system can pay off.4
Heat pumps, including reverse-cycle air conditioners, are one of the most energy-efficient systems you can buy4 and can be powered by the solar energy from your rooftop panels.
4. Swap to a heat pump hot water system
When the time comes to replace your water heater, consider choosing a heat pump system. These systems are highly efficient and use around a third of the energy of a conventional electric hot water system.5
5. Switch your petrol car for an EV
The petrol we use to power our cars accounts for a large proportion of the average household’s energy consumption. One of Griffith’s five steps to home electrification is making the switch to an electric one.
“When you put electricity into your car, it’s like you’re paying 20 cents a litre for petrol – that’s why you save money,” he says.
While electrifying your home and car can save you money in the long run, Griffith says finance solutions that assist with upfront costs are key to making this transition achievable for all Australians.
“If you buy an electric machine, it might be a bit more up-front but it’s a much, much cheaper subscription,” he says. “We do need to figure out how to finance if we’re going to bring everyone along.”