Whole-Home Electrification: Real Costs and Savings for WA Households

Thinking about going all-electric but worried about the upfront costs? You're not alone. The idea of replacing gas appliances, installing solar, and maybe adding a battery can seem overwhelming. Let's break down the real numbers for a typical Perth household.

The Baseline: A Typical Gas + Electric Home

Before we dive into electrification costs, let's establish what a typical Perth household currently spends on energy:

Current Annual Energy Costs

| Item | Annual Cost | |------|-------------| | Electricity (6,000 kWh @ 32c/kWh) | $1,920 | | Gas supply charge | $350 | | Gas usage (heating, hot water, cooking) | $450 | | Petrol (15,000km @ $2.00/L, 10L/100km) | $3,000 | | Total | $5,660/year |

This is our starting point. Now let's see how electrification changes these numbers.

Phase-by-Phase Electrification Costs

Phase 1: Solar Panels (Foundation)

A 6.6kW solar system is the sweet spot for most Perth homes.

Costs: | Item | Before Rebate | After STC Rebate | |------|---------------|------------------| | 6.6kW system with 5kW inverter | $7,000-9,000 | $4,000-6,000 | | Installation | Included | Included |

Savings:

• Year 1 electricity reduction: $1,400-1,800
• Simple payback: 2.5-4 years

After Solar, Annual Energy Costs: | Item | Cost | |------|------| | Electricity (reduced by solar) | $400-600 | | Gas supply charge | $350 | | Gas usage | $450 | | Petrol | $3,000 | | Total | $4,200-4,400/year |

Savings so far: $1,260-1,460/year

Phase 2: Heat Pump Hot Water

When your gas hot water system fails (or proactively if it's old), replace it with a heat pump.

Costs: | Item | Cost | |------|------| | Heat pump hot water system | $3,000-4,500 | | Installation | $500-800 | | STC rebate | -$800-1,200 | | Net Cost | $2,300-4,100 |

Savings:

• Replaces $200-300 of annual gas usage
• Uses about $80-120 of electricity (mostly from solar)
• Net annual saving: $100-220
• Payback: 10-20 years (but you needed a new hot water system anyway)

After Heat Pump Hot Water, Annual Energy Costs: | Item | Cost | |------|------| | Electricity | $500-700 | | Gas supply charge | $350 | | Gas usage (heating + cooking only) | $200-250 | | Petrol | $3,000 | | Total | $4,050-4,300/year |

Cumulative savings: $1,360-1,610/year

Phase 3: Induction Cooktop

Replace your gas cooktop with induction.

Costs: | Item | Cost | |------|------| | Induction cooktop (mid-range) | $800-1,500 | | Electrical circuit (if needed) | $300-600 | | New cookware (partial) | $0-300 | | Total | $1,100-2,400 |

Savings:

• Eliminates $100-150 of annual gas usage
• Uses about $40-60 of electricity
• Net annual saving: $40-110

The Big Win: Disconnecting Gas

Once you've removed gas hot water and cooking, you can disconnect gas entirely:

• No more gas supply charge: $350/year saved

After Induction + Gas Disconnection, Annual Energy Costs: | Item | Cost | |------|------| | Electricity | $550-800 | | Gas | $0 | | Petrol | $3,000 | | Total | $3,550-3,800/year |

Cumulative savings: $1,860-2,110/year

Phase 4: Reverse-Cycle Heating/Cooling

If you're using gas heating, a reverse-cycle air conditioner (heat pump) is dramatically more efficient.

Costs: | Item | Cost | |------|------| | Split system (per room) | $1,500-3,000 | | Multi-split or ducted system | $8,000-15,000 | | Installation | Included |

For a typical upgrade (2-3 split systems): $4,000-8,000

Savings:

• Gas heating costs $150-300/year to run
• Heat pump costs $40-80/year for same heating
• Net annual saving: $100-220
• Plus superior cooling in summer

After Heat Pump HVAC, Annual Energy Costs: | Item | Cost | |------|------| | Electricity | $600-900 | | Gas | $0 | | Petrol | $3,000 | | Total | $3,600-3,900/year |

Cumulative savings: $1,760-2,060/year (vs original $5,660)

Phase 5: Battery Storage

Add a battery to maximize solar self-consumption and provide backup power.

Costs: | Item | Cost | |------|------| | 10kWh battery system | $10,000-14,000 | | Installation | Included | | WA Battery Scheme (interest-free loan) | Reduces finance costs | | Net Cost | $10,000-14,000 |

Savings:

• Stores solar for evening use instead of buying from grid
• Net annual saving: $300-600
• Payback: 17-35 years (financial) / Immediate (energy security)

After Battery, Annual Energy Costs: | Item | Cost | |------|------| | Electricity | $200-500 | | Gas | $0 | | Petrol | $3,000 | | Total | $3,200-3,500/year |

Cumulative savings: $2,160-2,460/year

Phase 6: Electric Vehicle

The final step in whole-home electrification is replacing your petrol car.

Costs: | Item | Cost | |------|------| | Entry EV (new) | $45,000-55,000 | | Mid-range EV (new) | $55,000-75,000 | | Used EV | $25,000-45,000 | | Home charger installation | $500-1,500 |

Savings:

• Petrol costs eliminated: $3,000/year
• EV charging (mostly from solar): $300-600/year
• Net annual saving: $2,400-2,700
• Plus reduced servicing costs: $300-500/year

After EV, Annual Energy Costs: | Item | Cost | |------|------| | Home electricity | $200-400 | | EV charging (home) | $200-400 | | Public charging | $100-200 | | Gas | $0 | | Petrol | $0 | | Total | $500-1,000/year |

Total Annual Savings: $4,660-5,160/year (vs original $5,660)

Summary: The Full Electrification Investment

| Phase | Investment | Annual Savings | Payback | |-------|------------|----------------|---------| | Solar 6.6kW | $4,000-6,000 | $1,400-1,800 | 2.5-4 years | | Heat pump hot water | $2,300-4,100 | $100-220 | 10-20 years* | | Induction cooktop | $1,100-2,400 | $40-110 | 10-25 years* | | Gas disconnection | $0-200 | $350 | Immediate | | Heat pump HVAC | $4,000-8,000 | $100-220 | 18-40 years* | | Battery 10kWh | $10,000-14,000 | $300-600 | 17-35 years | | EV + charger | $45,000-75,000 | $2,700-3,200 | 14-28 years** |

*These items are replacements for appliances that would need replacing anyway **Compared to buying an equivalent new petrol car

Total Investment (excluding EV): $21,400-34,700 Total Annual Savings (excluding EV): $2,290-3,300

The Smart Approach: Phased Electrification

You don't need to do everything at once. Here's a practical timeline:

Year 1: Solar ($4,000-6,000)

Start here. It's the foundation that makes everything else cheaper.

Year 2-3: Replace Failing Appliances

When your gas hot water or cooktop needs replacing, go electric. Don't pay to repair gas appliances.

Year 4-5: Disconnect Gas

Once hot water and cooking are electric, eliminate the gas connection and its $350/year fee.

Year 5+: Battery and EV

Add these when prices drop further or when your current car needs replacing.

Financing Options

WA Battery Scheme

• Interest-free loans for batteries up to $10,000
• Spread the cost over 10 years
• No interest charges

Solar Finance

Many installers offer:

• 0% interest for 12-24 months
• Low-rate finance over 5-7 years
• Savings exceed repayments from day one

Green Loans

Some banks offer discounted rates for energy efficiency upgrades.

Real-World Example: The Johnson Family

Current Situation:

• 4-person household in Perth suburbs
• Gas hot water (15 years old)
• Gas cooktop
• No solar
• Annual energy: $5,500

Year 1 Actions:

• Installed 6.6kW solar: $5,200
• Replaced failing hot water with heat pump: $3,100

Year 2 Actions:

• Replaced cooktop with induction: $1,200
• Disconnected gas: $150

Total Investment: $9,650 Current Annual Energy: $1,200 Annual Savings: $4,300 Payback: 2.2 years

Next Steps:

• Considering battery when prices drop
• Will buy EV when current car needs replacement

Is It Worth It?

For most WA households, electrification makes financial sense:

Solar alone: Almost always worth it. 3-5 year payback.

Heat pump hot water: Worth it when replacing an old system anyway.

Induction cooking: Worth it for health benefits + gas disconnection savings.

Battery: Worth it for energy security; financial payback is long but improving.

EV: Worth it if you drive 10,000+ km/year and need a new car anyway.

The key insight: you don't pay extra for electrification - you're investing money you would have spent on energy anyway, but now you own the asset.

Get your personalized electrification plan with our Electrification Calculator. See exactly what each upgrade would save for your specific situation.