Electrifying Australian homes would cost $63billion according to costing done for David Pocock
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Massive $63bn price tag revealed for taxpayers to fully electrify Australian homes in effort to move away from fossil fuels
- Electrifying Australian homes could cost taxpayers $63 billion
- Costs were made by the Parliamentary Budget Office
Electrifying Australian homes by replacing gas appliances could cost taxpayers more than $63 billion, according to a new cost document.
Australian Pipeline and Gas Association chief executive Steve Davies has revealed that a sizeable estimate came from costs made by the Parliamentary Budget Office (PBO) for Independent Senator David Pocock.
The PBO estimated that it would cost $11.3 million to electrify just one suburb on the ACT.
The PBO based its estimate on a model where $13,000 per household in Canberra was spent to electrify 1,000 homes.
This figure indicates that it would cost more than $63.3 billion to electrify Australia’s 5.1 million homes that currently use gas.
It is estimated that it would cost taxpayers more than $63 billion to electrify every Australian home (file image)
Taxpayer-funded government subsidies would be used to cover 50 percent of the transition, which includes the installation of new electrical equipment.
The other half would be financed by the household through concessional loans through the government, according to the aussie.
Mr Davies explained that this estimate showed that 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 huge price tag of fully electrifying Australian homes and businesses has often been downplayed,” he told the publication.
“Every industry, including the gas infrastructure sector, has a responsibility to decarbonise and do it in a way that is affordable for households and businesses during this cost of living crisis.”
Pocock has long advocated for a national electrification program that boosts renewable energy sources in homes to reduce emissions and lower energy bills.
He launched his plan for a ‘Suburb Zero’ pilot project that would electrify every home in a suburb in Canberra last year.
The sizable estimate came from costs made by the Parliamentary Budget Office for independent senator David Pocock (pictured), who pushed through a national electrification programme.
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 power station to coal)
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 talk with Adam Bandt and the Greens, and what we’ve done, as he’s pointed out, we’ve agreed that we will develop in the run-up to the May budget, a package to help Australian households and businesses deal with with the move to electrification and support them on that journey,” he said.
‘Where there is disagreement, no surprise there, we have areas of agreement, we agree that households and industries are moving towards cheaper energy, often in the case of households, healthier energy is somewhat Well’.
“We have started that work, we have committed to deliver a substantial path in the lead up to the May budget. That’s right.
The cost of electrifying homes comes amid a recent report by the Australian Council for the Sustainable Built Environment which found electrification to be the “least expensive option” for decarbonisation.
The data also found that electrified buildings in Australia would save $49 billion between 2024 and 2050 over the “business as usual” strategy of electrification, gas and offsets.