Electrifying homes will drive down inflation

Image credit: Rewiring Australia 
Media Release by Rewiring Australia

Rewiring Australia says the federal government’s plan to help electrify homes and businesses will drive down inflation while saving the planet and Australian households money. 

The government has brokered a deal with the Greens to support businesses and households replace gas with electrification systems, in a package to be developed for the May 2023 Budget.

Rewiring Australia has found the average household could reduce their energy bills by around $5000 by 2030 if they electrify their cars and appliances.

Electrification of households would also reduce domestic emissions by around one-third.

The dual motivations of household savings and emissions reductions was behind Biden’s Inflation Reduction Act, which accelerated investment in domestic clean energy.

Founder of Rewiring Australia, Dr Saul Griffith, who was a key architect of the Biden administration’s electrification agenda, says Australia can follow and learn from the USA’s lead.

“Support from the government to help electrify business and households puts Australia in a stronger position to transform our energy economy away from expensive future commitments to fossil-fuels. This is Australia’s chance to lead the world on saving the climate, economy and household budgets.

“Clean electrification is anti-inflationary. The economics of electrification makes sense in Australia – petrol and gas prices are climbing while we live in a moderate climate and lead the world on rooftop solar and household battery installations.

“The price of petrol, diesel, gas, propane and electricity has steadily increased over the past few decades, at roughly the same rate as inflation. That trajectory is set to continue but the households that will beat it, and pay significantly less, are the ones that switch to electric cars and appliances that run off rooftop solar energy and batteries.

“This commitment from the federal government must only be the beginning of Australia’s electrification journey. Australia can reap the economic savings and reduce emissions if there are large commitments to electrification and we adopt something similar to America’s Inflation Reduction Act.

“In prioritising a more ambitious Act, Australia should provide accessible and affordable finance and incentives to support households electrify, invest in electrifying public and social housing, test intensive electrification through community pilots, build the skilled workforce for installations and support the growth of domestic manufacturing of modern, electric appliances.”