Massive $63billion price tag revealed for taxpayers to fully electrify Australian homes in effort to move away from fossil fuels
- Electrifying Aussie homes could cost taxpayers $63billion
- Costings were done by the Parliamentary Budget Office
Electrifying Australian homes by replacing gas appliances could cost taxpayers more than $63billion, according to a new costings document.
The Australian Pipelines and Gas Association chief executive officer, Steve Davies, revealed that hefty estimate came from costings done by the Parliamentary Budget Office (PBO) for Independent Senator David Pocock.
It was calculated by the PBO that it would cost $11.3million to electrify just one suburb in the ACT.
The PBO based their estimate on a model where $13,000 was spent per household in Canberra to electrify 1,000 homes.
This figure indicates that it would cost more than $63.3billion to electrify all 5.1million households in Australia currently using gas.
It’s estimated that it would cost taxpayers more than $63billion to electrify all Australian households (stock image)
Government subsidies funded by the taxpayer would be used to cover 50 per cent of the transition, which includes installing new electric equipment.
The other half would be funded by the household via concessional loans through the government, according to The Australian.
Mr Davies explained that this estimate showed the transition from fossil fuels to renewables would be financially difficult, especially given the cost-of-living crisis.
‘Every change we make to decarbonise our country will come at a cost and the enormous price tag of fully electrifying Australian homes and business has been frequently downplayed,’ he told the publication.
‘Each industry, including the gas infrastructure sector, has a responsibility to decarbonise and do so in a way that’s economical for households and businesses during this cost-of-living crisis.’
Mr Pocock has long advocated for a national electrification program that pushes for for renewable energy sources in households to reduce emissions and drive down power bills.
He launched his plan for a ‘Suburb Zero’ pilot project that would electrify all households for one suburb in Canberra last year.
The hefty estimate came from costings done by the Parliamentary Budget Office for independent Senator David Pocock (pictured), who has pushed for a national electrification program
Energy Minister Chris Bowen announced last December that the government was in talks with the Greens to develop a support package to help households and businesses transition from fossil fuels (pictured, coal-fired power station)
Energy Minister Chris Bowen announced last December that the government was in talks with the Greens to develop a support package to help households and businesses with the transition to electrification.
‘We’ve had a good conversation with Adam Bandt and the Greens, and what we’ve done, as he has outlined, we have agreed that we will develop in the lead-up to the May budget, a package to assist Australian households and businesses deal with the move to electrification and support them on that journey,’ he said.
‘Where there is a disagreement, no surprise there, we have areas of agreement, we agree that households and industries are moving to cheaper energy, often in a case for households, healthier energy, is a good thing.’
‘We’ve begun that work, we’ve undertaken that we’ll deliver a substantial path in the lead-up to the May budget. That’s the right thing to do.’
The cost to electrify households comes amidst a recent report from the Australian Sustainable Built Environment Council that found that electrification was the ‘least costly option’ for decarbonisation.
The data also found that electrified buildings in Australia would save $49billion between 2024 and 2050 over the ‘business as usual’ strategy of electrification, gas and offsets.