ARENA told to empower suburbs
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The Albanese Government is expanding suburb-wide electrification trials across Australia.
The government’s new initiative aims to reduce household energy bills and curb greenhouse gas emissions through government-backed subsidies for solar batteries and electric appliances.
Minister for Climate Change and Energy Chris Bowen has directed the Australian Renewable Energy Agency (ARENA) to explore funding for more community electrification demonstration projects nationwide.
This marks the first time Bowen has exercised statutory ministerial referral powers to recommend specific projects to ARENA, following negotiations with crossbench senators David Pocock, David Van, Jacqui Lambie, and Lidia Thorpe.
“Communities across Australia are seeing the benefits of the clean energy transformation, and the Albanese Government is delivering the leadership and support they need to grasp those benefits,” Bowen said.
The move builds on the $5.4 million Electrify 2515 pilot launched in Wollongong last October, part of over $144 million invested by ARENA in 49 projects since 2018.
Electrify 2515 equips homes in Austinmer, Clifton, Coledale, Scarborough, Thirroul, and Wombarra with energy-efficient electric appliances, rooftop solar, and smart energy management devices.
Advocates like Senator Pocock argue that small-scale pilots could serve as a blueprint for nationwide household electrification.
“Globally, the built environment accounts for 39 per cent of energy-related carbon emissions, so electrification will also have a huge impact in our efforts to combat climate change,” he said.
Pocock has also highlighted the cost-of-living benefits, noting that switching to electric appliances is among the “highest impact, non-inflationary” policies during economic hardship.
A 2023 CSIRO analysis estimated that households converting to all-electric appliances and electric vehicles could save up to $2,250 annually on power bills.
However, high upfront costs remain a barrier for many, prompting calls for expanded government subsidies.
While ARENA will independently assess each project for funding based on merit, the government seeks to trial programs in every state and territory.
This expansion comes after legislation was amended in late 2024 to make electrification a formal statutory function for ARENA, reinstating its funding after a lapse under the previous government.
Senator Jacqui Lambie welcomed the initiative but questioned the delay in government action.
“Surely, giving low-income people the chance to save money on their power bills would be a no-brainer? But they didn’t. Thank God we have a strong crossbench and the government has come to the party,” she said.
