The Illawarra’s northern suburbs on Tuesday (15 October) became the official host of a groundbreaking pilot that will help inform the country’s electrification journey, following a passionate two-year campaign led by the local community.
The Electrify 2515 Community Pilot, an $11.8 million partnership between Rewiring Australia, Brighte and Endeavour Energy with $5.4 million in federal funding through the Australian Renewable Energy Agency (ARENA), has launched.
The pilot will provide real-world data on the concentrated and rapid electrification of a community, measuring consumer behaviour, attitudes and energy bill savings to better inform how home electrification could be scaled across Australia.
Rewiring Australia co-founder and chief scientist Dr Saul Griffith said electrification was “probably the biggest economic opportunity we have in this energy transition in the short term”.
“The opportunity for decarbonisation, for lowering the energy bills of Australians, which is so critical in a cost-of-living crisis, is about electrifying our homes and communities,” he said.
A world authority on electrification who just finished helping the Biden administration in the US write the Inflation Reduction Act – the world’s largest piece of climate legislation ever – he said Australia had an even better shot than the US to lead the world in renewables.
“Australia’s rooftop energy is about five times cheaper than the US. If we can use that to power Australian households, we can save upwards of three and as much as $5000 per year per household,” he said.
“Let’s see if we can be the world’s first all-electric community. We would be the postcard for the future.”
Under the pilot, residents of the 2515 postcode (Austinmer, Clifton, Coledale, Scarborough, Thirroul and Wombarra) can apply for subsidies of up to $1000 off electric hot-water systems, reverse-cycle air conditioners and induction cooktops, and up to $1500 off home batteries. Each household will also have a free smart-energy device installed to optimise their energy use and switchboard upgrades to support the new appliances.
Subsidies will be offered to 500 homes, with additional incentives available for lower-income households to make the program accessible to a diverse range of people.
Tradespeople from across the Illawarra will be engaged to help deliver the pilot, bringing new skills, jobs and an economic boost to the region.
Electricity distribution network operator Endeavour Energy will be assessing and monitoring the local grid during the pilot, generating insights into how to best utilise the network for all customers as we manage the smart-energy transition.
Endeavour Energy CEO Guy Chalkley said the pilot provided an opportunity to answer concerns about the grid’s capacity to sustain rapid electrification within communities, flush out problems and devise solutions ahead of sharing insights that could aid scaling electrification nationwide.
“Endeavour has 25 per cent rooftop solar penetration on average across its whole network,” he said.
”That means some new suburbs are probably 90-plus per cent and we’ve coped with it. We’ll learn from projects like this and we’ll adapt.
”That’s the whole point of a pilot like this. I have full confidence this project will work.”
Minister for Climate Change and Energy Chris Bowen said the pilot location boiled down to the 2515 community having put together the “most advanced and considered plan”.
“Australia is the most renewable-rich country in the world, with the best solar resources and above-average wind,” he said. ”We still have a long way to go but when a community is all in, I want to be all in to help that community.”
Federal Member for Cunningham Alison Byrnes said she was proud the Illawarra was at the forefront of the research and data collection.
“I look forward to seeing this project provide valuable insights and data in how this model could be rolled out across communities, particularly our more vulnerable households in lower-socioeconomic areas who would benefit greatly from reduced energy bills,” she said.
Two years ago, about 1500 of around 4000 homes in the area expressed support for the pilot.
Long-standing 2515 community member Laura Scalafiotti said uptake indicated strong community support.
“It’s been amazing to see the conversation around electric homes leave the politics and enter the tangible aspects of day-to-day life for a lot of people,” she said.
“Suddenly it’s about cost of living, local jobs, reskilling and all the things communities care about.”
Francis Vierboom, Rewiring Australia market transformation manager and a renter in the 2515 area, said the pilot provided footing for the campaign to tackle some of its more complex challenges head-on.
This included convincing landlords to participate.
“We’re asking people who rent to definitely apply and tell us who their property manager is,” he said. ”We’re going to work with the real estate agents to help them make the case to the landlords to invest because this is a great opportunity to get a discount on upgrades they’ll need to make to their properties in the next decade.
“We’re also excited to ensure new builds hear and see what we’re doing here because there are still houses in new developments that are getting new gas pipes laid down to connect them to the gas network.
“Just last month, the gas network put in a proposal to the government to let them charge people $1500 to disconnect gas. You can join the network for free … but to get off the train, it’s a real hostage set-up.
“There needs to be an end to connecting new houses to legacy hardware when we could be connecting things to the energy source of the future instead.”
Applications for the pilot open today via Electrify 2515.