Electrifying homes and cars can save $5,000 a year, but households confused by policy “mixed messages”

Australian households could save $5000 a year by electrifying their homes and cars, but campaigners say governments must provide clear advice and targeted support to help more of them make the switch. 

More than 30 organisations will call for incentives and stronger policies in Canberra on Monday as part of a national campaign to electrify homes and businesses, and move away from fossil fuels. 

The campaign is linked to the international Electrify Now campaign, and follows a COP31 push to raise the global electrification rate from about 20 per cent to 35 per cent by 2035. 

Groups including Energy Consumers Australia, the Electric Vehicle Council, Farmers for Climate Action, and Rewiring Australia will launch the campaign at Parliament House, calling for changes to help more Australians replace equipment powered by gas, petrol or diesel. 

Many Australians had already adopted technology such as solar panels, home-battery systems and electric cars, Energy Efficiency Council policy head Jeremy Sung said, but government messages and incentives could be inconsistent. 

“There’s a role for the Australian government to send a clear signal that electrification is happening and that it’s what the future of our energy system will depend on,” he told AAP. 

”At the moment, federal policy is sending mixed messages.”

The Electrify Australia campaign will call for targeted support to help renters, low-income households and First Nations communities access efficient electric appliances, and for farmers, businesses and manufacturers replacing gas and diesel-powered equipment and vehicles.

The organisations will also urge the government to cap fuel subsidies offered to mining companies, and reinvest the savings. 

The reforms would cut greenhouse gas emissions and could also reduce household costs, Mr Sung said. 

”The numbers suggest that households who go all electric can save around $2000 on average per year,” he said. 

”If you then electrify your vehicle on top of that, you’re looking at probably another $2000 to $3000.”

Energy Consumers Australia chief executive Brendan French said research showed more Australians were keen to electrify their homes, though many required greater clarity and support.

”Governments and policymakers must now provide strong, unequivocal messaging to all consumers on electrification’s benefits, clear pathways and timetables on the way forward and robust, definitive policies to achieve it,” Dr French said. 

Australians have installed more than 4.5 million rooftop solar systems, as well as more than 530,000 home-battery systems since July 2025, according to the Clean Energy Regulator.

Source: AAP