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The Labor government aims to fund community electrification projects to ease the cost of living for households nationwide and fast-track the shift to renewable energy.
The Labor government has announced new plans to fund more community electrification projects nationwide in a bid to help households reduce power bills and lower emissions.
Minister for Climate Change and Energy, Chris Bowen, has referred the proposal to the Australian Renewable Energy Agency (ARENA), asking the agency to consider funding additional demonstration projects for home electricity.
The announcement builds on the impact of the $5.4 million Electrify 2515 pilot in Wollongong, launched in October 2024.
Through funding from ARENA, the initiative aims to provide energy-efficient electric appliances, solar power, batteries and shared community storage to participating households in suburbs such as Austinmer, Clifton and Thirroul.
It will also deliver a smart energy management device to optimise energy use.
Minister Bowen emphasised that electrification projects are key to generating valuable insights into future efforts to transition Australian households to renewable energy systems.
“Communities across Australia are seeing the benefits of the clean energy transformation, and the Albanese government is delivering the leadership and support they need to grasp those benefits,” Bowen said.
“ARENA pilot projects supporting home electrification will help create valuable insights into how households can transition to renewables and smart energy systems to cut energy costs and reduce emissions.”
The referral followed advocacy from senators David Pocock, David Van, Jacqui Lambie and Lidia Thorpe, who have supported the push for lower energy costs and increased use of renewable energy.
The Property Council of Australia said it welcomed the announcement.
The peak body’s chief executive, Mike Zorbas, said the initiative will benefit households and communities across the nation.
“Helping households electrify is a no-brainer. This will help cut emissions and, most importantly, lower power bills,” Zorbas said.
“With more solar panels, energy-efficient appliances and shared community energy storage, homes will be cheaper to run while being cleaner and healthier.”
Zorbas further highlighted that electrification is one of the most cost-effective ways to decarbonise the built environment, offering significant emission reduction opportunities for Australian homes.
“Let’s tackle climate change and cost of living pressures at the same time by supporting communities to boost their levels of electrification,” Zorbas said.
However, he warned that the transition’s success will depend on continued investment and policies that enable Australians to upgrade their homes effectively.
“These pilot projects will help make the electrification journey for our communities easier, more cost-effective and hopefully spur greater investment,” Zorbas said.
ARENA has already funded 49 electrification projects nationwide, investing over $144 million to reduce household energy bills through electrification and energy-smart improvements.
The latest funding push aims to replicate the impact of the Electrify 2515 project across additional states, including the ACT, Queensland, Victoria and Tasmania.
The Property Council said these demonstration projects will provide vital data shaping Australia’s future rollout of electrification programs.
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