The Albanese Government has tasked the Australian Renewable Energy Agency (ARENA) with funding new community-wide home electrification projects across all states and territories, aiming to permanently lower household energy bills and accelerate Australia’s clean energy transition.
Minister for Climate Change and Energy Chris Bowen has formally referred the initiative to ARENA, marking the first use of ministerial powers to direct the agency toward specific projects.
The strategy focuses on deploying rooftop solar, batteries, energy-efficient appliances, and shared community storage in suburban and regional areas.
Successful pilots, such as the $5.4 million Electrify 2515 program in Wollongong, will serve as models for nationwide replication.
The Electrify 2515 project, launched in October 2023, is upgrading homes in six suburbs (Austinmer, Clifton, Coledale, Scarborough, Thirroul, and Wombarra) with solar panels, smart energy management systems, and electric appliances.
Participating households—including renters—are shielded from energy price volatility through optimised renewable energy use.
ARENA has invested over $144 million in 49 similar residential electrification projects over the past six years.
ARENA will now explore expanding demonstration projects to the ACT, Western Australia, Queensland, Victoria, and Tasmania.
These trials aim to generate data for scaling suburb-wide electrification, addressing challenges such as grid integration and equitable access for renters.
The referral follows collaboration with crossbench senators David Pocock, David Van, Jacqui Lambie, and Lidia Thorpe, who advocated for cost-saving clean energy solutions.
Legislative changes in late 2024 also cemented electrification as a core ARENA function, reinstating lapsed funding from the previous government. Funding decisions remain independent, subject to ARENA’s merit-based assessment.
“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,” Bowen said.
Residential buildings contribute approximately 10 per cent of Australia’s carbon emissions and 24 per cent of electricity consumption.
Widespread electrification, coupled with renewables, could significantly reduce household emissions while easing cost-of-living pressures.
ARENA estimates its residential decarbonisation efforts, spanning $1.2 billion in lifetime investments, will play a key role in meeting Australia’s 2030 climate targets.
The first state-based projects under the expanded strategy are expected to launch in mid-2025.
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