Chapter 1Introduction

1.1On 14 June 2023, the Senate referred an inquiry into Australia’s residential electrification efforts to the Senate Economics References Committee (committee), with the following terms of reference:

(a)the economic opportunities of household electrification, including but not limited to:

(i)long-term reduction of energy price inflation,

(ii)long-term employment opportunities, and

(iii)the scaling up of domestic capacity;

(b)the macro-barriers to increasing the uptake of home electrification;

(c)the total upfront cost and longer-term benefits of household electrification and alternative models for funding and implementation;

(d)the marginal cost of abatement for household electrification compared to alternative sectors and options to decarbonise the economy;

(e)the optimal timeline for household electrification accounting for the likely timing of decarbonising electricity;

(f)the impacts and opportunities of household electrification for domestic energy security, household energy independence and for balance of international trade;

(g)the impacts of household electrification on reducing household energy spending and energy inflation as a component of the consumer price index;

(h)solutions to the economic barriers to electrification for low-income households;

(i)the effectiveness of existing Australian Federal, state and local government initiatives to promote and provide market incentives for household electrification;

(j)Australia’s current standing against international standards, particularly with respect to the uptake of rooftop solar, batteries and electric household appliances; and

(k)any other matters.[1]

Conduct of the inquiry

1.2The committee published details of the inquiry on its webpage and called for written submissions by 29 December 2023.[2] The committee also wrote to relevant stakeholders to invite them to make a submission.

1.3The committee received 236 submissions, as well as additional information and answers to questions on notice, as listed at Appendix 1.

1.4The committee was due to report on the last sitting day of 2024, however this was extended to, in turn, 5 December 2024, 31 January 2025, and 31 July 2025.[3]

Public hearings

1.5The committee held three public hearings, as noted below.

1.6Details of the witnesses who appeared at the hearings is listed at Appendix 2.

Acknowledgments

1.7The committee thanks the many inquiry participants who provided substantial evidence on the range of issues relevant to residential electrification in Australia.

Structure of the report

1.8The committee’s report is structured as follows:

Chapter 1—outlines the scope and conduct of the inquiry;

Chapter 2—sets out the opportunities of residential electrification in Australia, particularly in reducing emissions and energy costs;

Chapter 3—considers the barriers for consumers in electrifying their homes, including supports needed for households to electrify;

Chapter 4—discusses the appliance standards and building design issues impacting residential electrification outcomes;

Chapter 5—looks at the impacts of electrification on the energy grid; and

Chapter 6—provides the committee’s views and recommendations.

Footnotes

[1]Journals of the Senate, No. 50, 14 June 2023, pp. 1449–1450.

[2]See, Senate Economics References Committee, Residential Electrification, n.d. (accessed 9 June 2024).

[3]See, Journals of the Senate, No. 146, 28 November 2024, p. 4495; Journals of the Senate, No. 147,4February 2024, p. 4647.