If you are renovating, building, or simply at the point where an ageing appliance needs replacing, there has never been a better moment to think seriously about home electrification. Not as an abstract environmental commitment, but as a practical, financially considered decision that affects how your home runs day to day.
This guide covers the four areas where Australian homeowners are making the most meaningful changes and what you actually need to know before you start.
What is home electrification?
Home electrification is the process of moving your home toward being powered only by electricity, shifting your primary energy source from gas to electric across cooking, heating, hot water, and more.
The most common upgrades include switching to an induction cooktop, installing a reverse cycle air conditioner to replace gas heating, moving to a heat pump hot water system, adding rooftop solar, and if you own or are considering an EV, setting up home charging.
There are several potential benefits to electrifying your home, including helping you to save on your energy bills in the long run, reducing your carbon footprint, and for those with solar maximising the energy you generate at home.
The practical approach most experts recommend: start with the appliances that are already aging. Rather than replacing everything at once, focus on the gas appliances in your home that are due for replacement and plan to swap them for more efficient electric options before they break down. A plan beats a panic.
Making the switch from gas to induction
This is often the first question that comes up at the Home Show and for good reason. The kitchen is the room most Australians are most invested in, and the cooktop is where the gas versus electric conversation tends to get most personal.
Rather than using a gas flame or radiating heat from coils, an induction cooktop uses electromagnetic energy to directly heat up compatible cookware and this way of cooking comes with many advantages.
The practical ones first. As induction transfers heat to the base of your cookware directly rather than via a gas flame, your pots and pans will heat up faster, and the efficiency of induction cooktops means they generally require less energy to heat your cookware compared to gas options. The cooktop surface itself stays cool, which means spills do not bake on and cleaning is considerably easier than managing cast iron trivets and gas burners.
Before you buy, a few things to check. Induction cooktops can range from around $500 to over $6,000, and while most are compatible with a standard 10Amp connection, some will require a higher amperage connection without which you will need a licensed electrician to hard-wire one. Also worth noting: not all cookware is compatible. Glass, aluminium and copper cookware are not compatible with induction, but cast iron and stainless steel pieces often are you can check by placing a fridge magnet on the base of your pot. If it sticks, you are good to go.
What to ask before installing solar
Solar is often the piece that makes everything else click financially, powering your induction cooktop, your heat pump, your EV charger, and potentially earning you credits by feeding surplus energy back to the grid.
Before you get a quote, a few questions worth asking your installer:
How much solar do you actually need? The answer depends on your household size, energy usage, and which appliances you are running or planning to run. The Electrify Now(TM) tool by AGL can show you personalised estimates of energy bill savings based on your home’s location, energy use, and the upgrades you are considering.
What about battery storage? Batteries store the energy you generate during the day so you can use it after the sun goes down, keeping your home running with less reliance on the electricity grid. The Federal Government’s Cheaper Home Batteries Program currently offers rebates of up to 30 per cent off the upfront cost for eligible persons for those who are eligible, so timing matters.
What is a feed-in-tariff? This is a rate you are paid for surplus solar or battery energy you send back to the grid. With AGL’s Battery Rewards Plan, you can earn feed-in-tariffs in the form of bill credits, simply for exporting your excess energy to the grid during peak times of 5-9pm.* Plus, with AGL’s Virtual Power Plant, you can unlock even more rewards when sharing your stored power with the grid. These rewards can help off-set the financial investment you’ve made on your battery, and help reduce the payback period.
And if you are future-proofing: when buying or renovating, consider how you can future-proof your home — a well-insulated, all-electric home can be cheaper to run and can save you considerably in the long term. An emerging technology called vehicle-to-grid could eventually allow EV owners to send stored energy back to the grid, so the decisions you make now on infrastructure can have long-term implications.
EV charging at home
If you have rooftop solar power, you can charge your EV using solar energy — provided you have the right charger. Your car will receive solar energy when the panels are producing more energy than your house needs, with the amount of solar power that charges your car depending on how much your system generates and whether you are running other appliances at the same time.
A few practical considerations before installation. You will need to know whether your home runs on single-phase or three-phase power — basic chargers only require single-phase power, while faster chargers of 11kW and above require three-phase. If you are renting or in a strata building, you will need permission from your landlord or body corporate before installation can proceed. This is worth raising early if you are planning ahead.
While Australia’s public charging network continues to expand, with around 2,500 public charging stations available nationwide, most EV charging still happens at home. Overnight charging is not only convenient but can also be more cost-effective. Choosing an EV-specific energy plan, such as AGL’s Night Saver EV plan, can help drivers take advantage of lower-cost overnight charging periods.
Where to start
Home electrification does not have to happen all at once. The most practical approach is to make a plan, prioritise the appliances that are already due for replacement, access the rebates and incentives available to you, and take it one step at a time.
The Electrify Now(TM) tool by AGL is a good starting point for understanding your personalised savings potential across solar, battery, induction, hot water heat pumps, heating and cooling at pump hot water, and EV charging. You can find it at https://www.agl.com.au/residential/energy/electrify-now
Disclaimers
*Get feed-in-credits of from 25c/kWh (not subject to GST) for your battery and/or solar exports between 5pm – 9pm. Feed-in-credit varies by state, being 27c/kWh in QLD, 25.5c/kWh in VIC, 28c/kWh in NSW, and 26c/kWh in SA. This credit can change from time to time with ‘ written notice to you. Maximum solar system inverter capacity and eligibility criteria apply. Basic Plan Information Documents and Fact Sheets containing key details of the plan available on request at agl.com.au/bpid. For clear advice on the right plan for you, contact AGL on 13 12 45.