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Title page 1

Contents 4

Members 3

Terms of reference 7

Abbreviations and acronyms 8

Executive summary 9

List of recommendations 13

Chapter 1. Introduction 14

Conduct of the inquiry 15

Public hearings 15

Acknowledgments 15

Structure of the report 15

Chapter 2. Opportunities 16

Overview 16

Electrification and household energy efficiency 16

Energy use in Australian households 17

Energy efficiency of electric household appliances 19

Electrification and emissions reduction 21

Residential electrification as a cost-effective option for decarbonisation 25

Economic opportunities of residential electrification 27

Reducing rising costs of energy for Australian households 27

Job creation 30

Scaling up domestic capacity and improved energy security 34

Chapter 3. Consumer barriers and supports 37

The high upfront costs of electrification 37

Support for overcoming the high upfront costs of electrification 39

Barriers for low-income households 42

Supports are needed for low-income households 44

Barriers to electrification for renters 45

Supports to increase renters' access to the benefits of electrification 47

Supports for people living in social housing 50

Coordination of residential electrification supports 51

The need for a broad ecosystem of electrification supports 51

Improved, national coordination of electrification efforts 52

Chapter 4. Building design and appliance standards 54

Design standards and other requirements for new residential builds 54

Gas connections for new properties 54

Electrification and related upgrades for existing buildings 57

The electrification challenge for multi-unit and strata buildings 58

Targeted initiatives for rental properties 61

Material gas disconnection fees 63

Enabling a coordinated approach to energy efficiency upgrades 64

Supporting electrification through enhanced appliance standards 64

Utilising solar panels and battery storage systems 66

Challenges of rooftop solar for apartment complexes 68

Utilising the energy storage potential of electric vehicles 69

The promise of virtual power plants 70

The rollout of smart energy meters 71

Improving energy efficiency disclosure and performance 72

Chapter 5. Residential electrification and the grid 74

Managing the challenge of variable electricity demand 74

Consumer energy resources and grid integration 74

Main types of transition investment 77

Costs of rooftop solar in electrification 78

Ensuring the stability and reliability of the grid 80

Importance of battery storage in managing grid stability 80

Role of technology 82

Role of battery storage in grid management 82

Investments in grid infrastructure needed to support electrification 83

Wiring upgrades 83

Optimal timeframe for residential electrification 84

Expediting residential electrification to address environmental challenges 84

The complexity of transitioning to widespread household electrification 86

Staggered approach 87

Chapter 6. Conclusion and recommendations 89

Promoting electrification 89

Leveraging rooftop solar 90

Avoiding labour shortfalls 91

Government senators' additional comments 93

Senator Pocock's additional comments 98

Appendix 1. Submissions and additional information 102

Appendix 2. Public hearings and witnesses 109

Tables 15

Table 1.1. Public hearings 15

Figures 17

Figure 2.1. Australian total energy consumption, by industry in 2022-23 17

Figure 2.2/Figure 2.3. Residential electricity consumption, National Electricity Market (2024-25 to 2049-50) 18

Figure 2.3/Figure 2.4. Space heating relative efficacy-gas ducted heating vs split system heat pump 19

Figure 2.4/Figure 2.5. Consumer price index of electricity compared with gas and other household fuels, 2017-23 28

Figure 2.5/Figure 2.6. Beyond Zero Emissions modelling of energy cost savings for electrified households 29

Figure 3.1. Trajectory of household spending on energy 44

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