Families are being encouraged to switch to electric appliances and vehicles as part of the government's broader climate plan. While the environmental benefits are well understood, new figures from the Treasury show households could also benefit financially, with potential savings of up to $4300 each year from 2030 to 2050. Based on Treasury projections, the analysis shows how switching to electric appliances, rooftop solar and electric vehicles can reduce energy costs while helping achieve Australia's goal to cut emissions by up to 70% by 2035.
Currently, energy costs account for around 5% of disposable income for the average Australian household. For low-income families, this rises to over 11%, placing a higher burden and generating more interest in renewable energy and electrification. Treasury’s modelling outlines how current government policies may reduce both power bills and emissions, although it does not detail future electricity prices in the available data.
In one common scenario, a family that replaces gas cooktops, space heaters and hot water systems with electric options could save about $1040 annually. If they add rooftop solar and a battery system, those savings increase to about $1200. Taking it even further by converting both cars to electric models, while maintaining solar generation, could deliver total energy savings of $4300 per year on average over 20 years.
Uptake is already gaining momentum. With over one in three homes now fitted with rooftop solar, Australia is on track to exceed its 2030 goals. Battery adoption is also growing quickly, boosted by rebate schemes that recorded more than 55,000 installations in just two months. An additional $85 million in government funding is being rolled out to help households track energy use and improve efficiency.
The shift to electric vehicles is also key. Treasury estimates that a typical household with two cars driving 12,800 kilometres each per year could save about $2070 annually on fuel and maintenance costs by switching to EVs. According to the Climate Change Authority, meeting the 2035 emissions goal requires half of all new car sales over the next decade to be electric. At present, EVs make up just over 9% of new vehicle sales.
For households that switch both home energy systems and vehicles to electric, Treasury predicts a long-term reduction of 40% in energy costs. These households are also expected to cut their carbon emissions by 130 tonnes of CO₂ between 2030 and 2050, making a significant contribution to Australia’s emissions reduction targets.
