Making the switch: the challenge of electrifying low-income households

While shifting from gas to renewable electricity is increasingly becoming a priority for governments, little has been done so far to address the challenges faced by low-income households in making this transition. A new joint report from the Brotherhood of St. Laurence (BSL) and the Australian Research Council Centre of Excellence for Children and Families Over the Life Course (Life Course Centre) has investigated the issue with a view to providing solutions.

The ‘Enabling Electrification’ study focused on households facing energy stress to better understand their attitudes towards shifting away from gas and their capacity to electrify their homes, as well as the barriers they face and potential policy solutions.

The study found that lower-income households will need significant assistance from government to transition away from gas.

“Policy plans, such as Victoria’s Gas Substitution Roadmap, can drive this shift,” said co-author Sangeetha Chandrashekeran from ARC’s Life Course Centre.

The report, which drew on 220 survey responses and six focus groups, found that most participants surveyed supported a planned transition from gas to electricity in principle but faced barriers to electrifying their own homes. Reducing energy bills and environmental concern were the key drivers for households wanting to electrify. Also, people’s preferences for gas or electricity were strongly linked to what they currently used.

“Getting off gas will reduce household energy bills and make an essential contribution to reducing Australia’s greenhouse gas emissions. However, lower income households are likely to be the last ones left on the gas network, paying more, unless further support is put in place,” said Damian Sullivan, co-author and BSL’s Climate Change and Energy lead.

Sullivan said that renters faced some of the biggest barriers. “Even if they can afford to, they’re often not allowed by their landlords to switch to electric appliances, and many were afraid to even ask.

“Electrification and energy efficiency upgrades are essential because they lead to robust energy bill reductions, which last over time, unlike one-off payments,” he said.

The research points to the need for a clear plan to move away from gas and accelerate quality retrofits for lower-income homes (including social housing) — a one-stop shop that provides tailored and trusted electrification information and advice, reforms to help renters electrify and subsidies for low-income homeowners.

Image credit: iStock.com/Christopher Freeman