Government senators' additional comments
1.1The Australian Government supports residential electrification through a suite of policy initiatives and investments so communities can take advantage of cheaper, cleaner energy to reduce energy bills and reduce emissions. Core recommendations of this inquiry are already underway, backed up by Labor’s substantial progress towards 82 percent renewables in the grid by 2030.
1.2The Australian Government’s National Energy Performance Strategy (NEPS) provides a long-term framework to manage energy demand, so our community can enjoy the economic, climate and health benefits of improved energy performance.
1.3In July 2024, the Energy and Climate Change Ministerial Council agreed to the release of the National Consumer Energy Resources Roadmap. The Roadmap responds to the need to promote better coordination and optimisation of Community Energy Resources (CER), such as rooftop solar, home batteries and electric vehicles, which will put downward pressure on bills and overall system costs, reduce emissions and broaden access to CER across communities.
1.4The 2023–24 Budget’s Energy Savings Package is delivering more than $1.7 billion for energy saving upgrades for homes, businesses, local governments and social housing. In November 2024, this was supplemented by an additional $500 million for the Social Housing Energy Performance Initiative (SHEPI).
1.5Government Senators agree that this report proves the Coalition’s $600 billion nuclear scheme fails Australian households, because it will push up power bills by up to $1200 a year, cut off rooftop solar, and drop a 2 billion tonne emissions bomb on the economy.
1.6Residential electrification allows households to benefit from more energy efficient appliances and home environments that reduce energy bills, and when supplied with renewable energy allows for further emissions reductions.
1.7Electrifying a household can entail prohibitive up-front costs for several demographics. This affects renters, people on low incomes including homeowners on low incomes, and those who live in apartment buildings. It is important that as households and the wider economy gradually electrifies that sections of the community are not left behind.
1.8Government Senators are of the view that equity must be a strong consideration in any initiatives to support residential electrification and is encouraged by this focus in government programs to-date.
1.9Government Senators would like to thank the many organisations that submitted and appeared at the public hearings, and for sharing their insights and recommendations to achieve high quality and equitable residential electrification.
1.10Government Senators would also like to acknowledge the long running advocacy work of trade unions, social services organisations, environmental organisations and industry group in seeking a just and equitable transition to the net zero economy, in households and in workplace.
1.11Government Senators similarly acknowledge the important role that highly skilled and qualified tradespeople have in residential electrification and upgrades, and the energy transition more broadly. There is an important need to increase the number of people taking up the electrical trades and to support them in completing their apprenticeships.
1.12Many of the Chair’s recommendations call for coordination between the federal, state and territory governments particularly with regards to the uptake of in-home and community infrastructure.
1.13Government Senators note this coordination work is already underway. The Australian Government established the Energy and Climate Change Ministerial Council in September 2022. This provides the forum for states and territories to work together on priority issues of national significance and key reforms in the energy and climate change sectors. The coordination between the Commonwealth and States and Territories is exemplified by the numerous joint initiatives already supporting electrification, reducing energy bills, rolling out community batteries, and making important investments in social housing upgrades.
1.14Initiatives delivered by the Federal Government, and those being delivered in partnership with state and territory governments including:
1.15The Energy Bill Relief Fund extension announced in the 2025–26 Federal budgetwill take another $150 directly off household energy bills, in addition to the $300 that has already been provided to all Australians in the 24–25 financial year, and the up to $250 provided to eligible households in the 23–24 financial year.
1.16The $1.3 billion Household Energy Upgrades Fund (HEUF), including $1 billion for the Clean Energy Finance Corporation (CEFC) to unlock energy performance upgrades and bring down bills for over 110 000 Australian homes. These loans, delivered in partnership with participating lenders, are facilitating investment in battery-ready solar, better insulation, and energy efficient home appliances.
1.17$36.7 million to update and expand the Nationwide House Energy Rating Scheme (NatHERS) so that existing homes can receive energy ratings, and updates to the Your Home website providing information for builders, buyers and renovators on sustainable and energy efficient homes, including free energy-efficient house plans.
1.18$15.2 million for the NEPS to improve energy performance, address demand side action, improve energy affordability and reliability and ultimately reduce emissions from homes, across the economy and in the energy system.
1.19The $800 million Social Housing Energy Performance Initiative (SHEPI) is delivering thermal upgrades, new energy efficient appliances and solar panels and batteries for social housing, in collaboration with state and territory governments.
1.20The $100 million Community Solar Banks program that is helping 25,000 renters, apartment dwellers and low-income households access the benefits of rooftop solar when they are unable to install their own infrastructure.
1.21The $200 million Community Batteries for Household Solar program is delivering 400 community batteries around Australia, to store excess solar energy for families and households to use during peak periods.
1.22$314 million for the Small Business Energy Incentive is supporting small businesses to claim tax deductions on electrification and energy efficient upgrades.
1.23$150 directly off small business energy bills, in addition to the two payments of $325 that have already been cut from bills through rounds in the 23–24 and 24–25 financial years as part of the expanded Energy Bill Relief Fund.
1.24$56.7 million for the Energy Efficiency Grants for Small and Medium Sized Enterprises program is supporting businesses to upgrade or replace inefficient equipment and implement other energy efficiency activities.
1.25$100 million for the Community Energy Upgrades Fund (CEUF) which is assisting local governments with matched funding to undertake energy efficiency and electrification upgrades on council owned or operated facilities.
1.26$47.7 million to support structural reform to the energy market in partnership with jurisdictions and market bodies, targeted at unlocking the benefits of CER, like lower wholesale prices and higher returns for households exporting rooftop solar and batteries to the grid.
1.27In Western Australia, the Australian Government is contributing funding to Project Jupiter in association with Western Power. It will integrate distributed energy resources (DER) such as rooftop solar and residential batteries at scale within WA’s main electricity system, the South West Interconnected System (SWIS), accelerating opportunities for WA households to join virtual power plants (VPPs) and participate in the energy transition.
1.28For the first time under his Ministerial referral powers, Minister Bowen recently asked the Australian Renewable Energy Agency (ARENA) to consider funding for more community electrification demonstration projects across the country. This followed the $5.4 million in funding that the Government contributed through ARENA for the Electrify 2515 project, which is the latest in at least 49 projects in which ARENA has invested more than $144 million over six years to help homes reduce their energy bills through electrification and other energy smart improvements.
1.29The Chair’s call for governments to ‘consider cost-effective local tuition for apprentices’ but fails to provide any further detail.
1.30Government Senators note that to meet skilled labour demands there is a clear need to increase the number of electrical tradespeople and the number of apprentices completing their qualifications.
1.31Further, federal, state and territory government initiatives are already encouraging the take up of electrical trades, and particularly women to take up electrical trades.
1.32This includes the Federal Government’s New Energy Apprenticeships Program which provides up to $10 000 to 10 000 apprentices who undertake their apprenticeship in a new energy occupation, and the National Skills Agreement with all levels of government.
1.33It also includes federal, state and territory Free Tafe programs allowing over 100,000 people every year the opportunity to up-skill in new courses, undertake apprenticeships and pre-apprenticeships with no tuition costs. Government Senators note that legislation to make this scheme permanent was recently opposed by the Coalition in the Federal Parliament
1.34Government Senators stress that ‘cost effective local tuition’ cannot simply mean cheaper, or the removal of free, tuition. Further, high quality training must not be undermined, or apprenticeship completion rates risked, by ‘cost effective local tuition’.
1.35Government Senators also welcome the Federal Government’s announcement of the development of a national licensing scheme for electrical trades people and is encouraged that this reform will allow for high standards to be applied in high-demand sectors across the country without unnecessary barriers.
1.36The benefits of residential electrification are significantly increased when it is complemented by increasing rates of renewable energy into the national energy grid. This allows for households to benefit from cheaper energy bills and reduced emissions.
1.37There is little benefit to electrification if energy generated from fossil fuels is powering new induction cook tops and new heat pump hot water units well into the future.This energy supply must be gradually replaced with reliable, renewable energy, which is already happening under this government.
1.38Importantly, for residential electrification to be cost effective and generate a return on investment, energy bills need to be kept as low as possible. This can only be achieved with increasing the cheapest form of energy generation, renewable energy.
1.39Government Senators welcome that the Federal Government in on track to reach its target of 82 percent renewable electricity generation by 2030, that a record 46 percent of electricity in the grid was generated by renewables in the last quarter of 2024, and that the amount of solar, wind and other renewables that came online in 2024 reached 7.5 GW in capacity, an increase on 5.3 GW in 2023.
1.40Government Senators are concerned about the impact the Coalition’s $600 billion taxpayer funded nuclear scheme would have on communities and households across the country. The independent research of the Commonwealth Scientific Industrial and Research Organisation and Australian Energy Market Operator has confirmed that nuclear is the most expensive form of energy generation, up to six times more expensive than firmed renewables.
1.41Government Senators note with concern that experts have identified that the Coalition’s nuclear scheme would junk household solar systems, forcing owners across the National Electricity Market to switch off their home solar around 67 percent of the time.
1.42Government Senators note the Coalition’s nuclear nonsense will extend the life of coal generation beyond its needs, increase energy bills by up to $1200 a year and drop a 2 billion tonne emissions bomb on the economy.
Senator Jess Walsh
Deputy Chair
Labor Senator for Victoria
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