Minister for Climate Change and Energy Chris Bowen on Friday announced along with Assistant Minister for Climate Change and Energy Jenny McAllister its strategy to create a “high energy performance economy and help consumers take control of their energy use and save on bills.”
Five key areas are in the crosshairs: economy; households; communities, businesses and industry; energy system; and technology and innovation.
Key elements of the strategy include:
- greater access to tools that deliver transparency about the performance of homes, workplaces and appliances
- reforms to reduce barriers to making upgrades
- support for the government’s new home energy ratings tools, lifting minimum standards for new builds, investing in social housing upgrades, grants for small business and local government, and $1 billion for low-cost loans to households.
- Flexible demand – including both large-scale demand and controllable EV charging and batteries – would generate up to $18 billion in cost savings for consumers through lower capital and wholesale prices in the NEM by 2040.
- Around 20% of global emissions reduction by 2030 will be achieved by electrification.
The strategy would save money for consumers and businesses the government media statement said.
“This can include upgrading energy efficient appliances, homes and buildings; maximising off-peak times to reduce energy costs; and harnessing renewable energy technologies like solar, batteries or electric vehicles.”
“The government will also collate and publish more data to better track energy performance across the economy, better integrate demand-side opportunities into system planning, and establish an advisory group to better coordinate collaboration across business and governments.”
Mr Bowen said: “Energy performance is about energy savings and bill savings.”
Ms McAllister said:
“Whether through improved energy efficiency, demand flexibility, or electrification this strategy helps households and businesses to deliver the cheapest, cleanest, and healthiest outcomes from their energy.
“Households are partners in our renewable energy transformation. We want solar on rooftops, batteries in garages to work hand in hand with the rest of the energy market.”
Following are key media releases and links to explain what’s just happened:
From the Energy Savings Industry Association
NEPS steps up finance without transformative national incentive scheme for support industry and consumers
Industry holds out hope the federal government will commit to transformative policy in due course with a national incentive scheme as part of its evolving national energy performance strategy (NEPS) as recommended by the Climate Change Authority.
“Today’s NEPS release isn’t addressing the glaring gap industry is facing now as the small-scale renewable scheme (SRES) winds down to 2030. The SRES is the only national mechanism supporting households, small business, and commercial buildings with upfront financial incentives for energy upgrades including hot water heat pump technologies along with solar and batteries,” said Energy Savings Industry Association President Mr Rod Woolley.
“Without a standalone national energy savings scheme, the SRES needs to be extended and expanded to include more energy efficient upgrades including air conditioning at least.”
Today’s NEPS release including a home energy upgrades fund (HEUF) $1 billion finance pool over four years announced in the May budget provides a windfall for the banks with detail yet to be tested on how households will synchronise access, if they are eligible, with the upgrades their homes most need.
“We need progress reports with transparent evidence of success on how the HUEF is delivering over time. It’s a low interest, not a no interest, program – the latter being a more optimal loan model to maximise uptake and broad access. We look forward to seeing more details from the Clean Energy Finance Corporation (CEFC) which is tasked with approving finance partners and eligible energy upgrade types including rooftop solar and batteries under the HEUF scheduled to launch from 1 July 2024.
“Our members including equipment suppliers and installers are seeking information to understand how they can co-promote available finance to their customers. We look forward to engaging with the CEFC and financiers on this opportunity.
“We commend the federal government for putting energy efficiency firmly on the national agenda and committing billions in budget funding to support households. We welcome commitments to minimum energy performance standards for new technology appliances and disclosure of homes and commercial premises at the point of sale and rental. We welcome continued engagement with the federal government and NEPS team to deliver their commitment to supporting Australian households and businesses to electrify, reduce greenhouse gas emissions and save money on their energy bills,” said Mr Woolley.
The ESIA is advocating for tax incentives for landlords to better support renters who face more barriers than homeowners.
More links
Chris Bowen media release: https://minister.dcceew.gov.au/bowen/media-releases/first-national-energy-performance-strategy-ready-take-pressure-energy-bills
NEPS document: https://www.dcceew.gov.au/energy/strategies-and-frameworks/national-energy-performance-strategy
NEPS webpage: https://www.dcceew.gov.au/about/news/launch-of-national-energy-performance-strategy
ESIA Submission: https://esia.asn.au/publications/submissions/esia-submission-national-energy-performance-strategy-consultation-3-feb-2023
https://www.dcceew.gov.au/energy/strategies-and-frameworks/national-energy-performance-strategy