Now the Federal election is over, what’s next? Electrify everything, fairer and faster

Australians have overwhelmingly chosen a future of cheaper, cleaner energy - a landmark win for climate action.

This election is a clear mandate to continue this energy transition, but we need to make it happen fairer and faster. Here’s what needs to happen next:

1. Flexible, concessional finance to help invest in lower bills

As many commentators have noted, a typical home battery might still cost well over $8000 even after this proposed subsidy, and despite the long-term savings on offer, this upfront cost is out of reach for many households with limited savings. 

Advocates from across sectors are clear: we need consumer-friendly finance options available to help every household upgrade and lower bills. Rewiring Australia has modelled the Electrify Everything Loan Scheme - a loan for homeowners to upgrade that’s secured on the property, indexed, and repaid on sale, with the option for income-contingent repayments. 

This kind of finance would help and incentivise everyone from low-income pensioner homeowners to multi-property landlords deliver lower bills to the homes that need it most. The day you’re getting the money from a home sale is the easiest day to pay off a small upgrade loan. What’s more, this is a loan that’s literally ‘safe as houses’, which minimises the cost of financing to taxpayers.

2. A National Strategy for Renter Energy Bills

Electricity and gas bills have more than doubled as a share of household costs since the early 1990s, rising from under 1.5% to around 3.5%. Renters pay even more, despite using less energy, because they can’t make the bill-busting electrification improvements that homeowners can - for example, installing a home battery. 

If we had a focused plan to deliver energy upgrades for renters, we’d be relieving cost of living pressures where it matters the most while making further cuts to emissions.

Rewiring Australia is calling on all parties to commit to a National Strategy for Renter Energy Bills in the next Parliament. This Strategy should have the objective to deliver lower energy bills in rentals and drive the upgrade of rental homes, bringing them up-to-date with the energy options available to homeowners. This will require action across Federal and State governments, and they’ll need to collaborate to deliver the policy reforms, finance and support to make it happen.

3. Wider scope for upgrades to cut bills and emissions

The Small Scale Renewable Energy (SRES) Scheme now applies discounts to solar panels, home batteries, and heat pump hot water systems. These technologies play a crucial role in electrification and lowering emissions. Why stop there? The scheme could also send a signal that now is the time for households to invest in a wider range of upgrades that lower emissions and bills. It should enable discounts for:

• Batteries not attached to solar panels - currently excluded from the scheme
• EV chargers that enable bidirectional charging and allow EV batteries to play the same role as home batteries
• Air conditioning upgrades that replace gas heating systems
• Cooktop upgrades that replace gas cooking
• Electric vehicles that slash petrol emissions