The Energy Efficiency Council has called on Australian governments to ramp up support for the electrification of Australian homes, to bolster their resilience to global energy shocks.

With Australians facing their third major disruption to the global energy market in the last six years, the International Energy Agency (IEA) has cautioned that it may take months to recover from current disruptions to oil and gas supplies in the Middle East.

“This highlights the economic and financial vulnerabilities we face if we continue to rely on fossil fuels,” said Luke Menzel, CEO of the Energy Efficiency Council.” 

“While the immediate impact of this crisis has been on petrol prices, a prolonged conflict could result in higher gas prices as well. Accelerating the switch from oil and gas to clean, efficient electricity reduces running costs and insulates Australian households and businesses from future economic shocks,” he said. 

Recent research by the Institute for Energy Economics and Financial Analysis (IEEFA) shows that upgrading homes with electric appliances, energy efficiency measures, solar and batteries, can cut home energy bills by up to 90 per cent.

“Electrification is a better way to meet our energy needs in every way. It’s more efficient, cleaner, and almost always reduces running costs. Wherever we can – across buildings, transport and industries – we should electrify. And the earlier we do so, the faster we can enjoy the benefits.”

Over 50 per cent of final energy demand in Australia’s residential sector is sourced from electricity, growing at a rate of 1.7% annually over the past five years of data, after flatlining in the years prior.  

Menzel said that while this sector growth rate was better than the economy-wide growth in electrification – showing that households were increasingly embracing electricity over gas – it remained too slow. 

“Around 5 million homes remain connected to reticulated gas networks, with another 2 million using LPG. They all need to make the shift from gas to efficient electric homes by 2050,” said Mr Menzel. 

“We need a large-scale, long-term, national effort to upgrade our existing housing stock over the next 25 years into energy efficient, electrified homes through a range of improvement measures such as insulation and draughtproofing, and upgrades to efficient electric appliances.”

Actions that Australian governments can take include: 

1. Establish a National Retrofit Partnership to support the retrofitting of millions of homes: Raising the energy performance of our existing homes is a national infrastructure task that requires a co-ordinated approach. The Commonwealth Government should allocate $12 million per year to establishing an interjurisdictional taskforce or agency between the federal, state and territory governments that can deliver incentive programs and co-ordinate low-cost financing options.

2. Revamp incentive programs for efficient electrification: Provide access to targeted financial incentives to assist with the upfront cost of home efficiency and electrification, and promote flexible demand.  These should be available nationally, over the long-term – to avoid boom and bust cycles – and prioritise quality and safety. This could include expanding and extending the Small-scale Renewable Energy Scheme to drive efficient electrification and flexible demand.

3. Expedite mandatory energy performance ratings and disclosure for homes:  Accelerate the introduction of home energy performance ratings at the point of sale and lease, to provide households with the information they need to choose an efficient, electric home, and drive improvements across Australia’s housing stock. 

4. Phase out gas appliances, and modernise appliance standards: The most cost-effective way of electrifying Australia’s housing stock is phasing out gas appliances, and replacing them with efficient, electric alternatives at end of life, which can be achieved efficiently and at scale through regulation. Standards should also include requirements that electric appliances are able to be optimised for the home and grid.

5. Extend the adoption of energy efficient rental standards: All states and territories should introduce standards like those in place in Victoria and the ACT requiring energy-efficient electric features in rental homes, such as insulation and efficient, electric appliances. 

Visit the Energy Efficiency Council’s Efficient Electric Homes Market Acceleration Plan and its 2026-27 Pre-Budget Submission for more detail on the EEC’s policy recommendations. 

About Energy Efficiency Council

The EEC is a membership association for organisations working to harness the power of efficiency, electrification and energy flexibility to deliver a prosperous, net-zero future.

Our mission is to catalyse action from government and industry that delivers:

Efficient, electric homes;

Productive, net-zero businesses; and

An optimised energy system powered by renewable energy.

We work with our members, governments and other experts to accelerate the deployment of efficient, electric and flexible products and services.

We deliver practical change by building the evidence base, making the case, informing policy, supporting skill and literacy, and shaping market outcomes.

Learn more at eec.org.au.

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