While electrification will drive up electrical consumption, it will simultaneously lead to a vast decrease in overall energy demand. This is primarily because of the far greater efficiency of electric appliances and vehicles compared to their fossil fuel counterparts. If we can successfully make this nationwide shift, it has the potential to fix a lot of our energy-related issues, from reducing emissions to lowering household costs.
The Electric Homes Technical Report was commissioned by EECA and prepared by Rewiring Aotearoa. It really digs into the numbers and the findings are awesome. Very happily, the report offers access to the data behind much of its analysis. I do love Excel spreadsheets! This transparency is crucial for understanding the intricacies of our energy transition.
The report breaks down where our household energy goes. It’s still the same split for space heating and water heating: each account for 31% of energy use and everything else is in the remaining third. Refrigeration at 9% is still a surprisingly significant chunk of our energy consumption. These figures underscore the importance of efficient appliances and well-insulated homes.
Graphs from “Electric Homes Technical Report: The energy, economic, and emissions opportunity of electrifying New Zealand’s homes and cars”, by Josh Ellison et al, published March 2024 by EECA.
The report highlights a crucial long-term economic benefit. Solar power is significantly cheaper than grid electricity over a 30-year period—a lot cheaper. Investing in rooftop solar not only provides cleaner energy but also offers substantial savings over the lifespan of the system. Combined with the increasing affordability of home batteries, this offers a pathway to greater energy independence and resilience. I’m still recommending holding off a while longer on purchasing batteries unless you need the resilience they offer but they are already cost effective over their lifespan.
The Electric Homes Technical Report paints a clear picture: electrifying our homes and vehicles isn’t just an environmental imperative, it’s also an economic opportunity. By embracing readily available electric technologies and leveraging the power of the sun, New Zealand can move towards a more sustainable and affordable energy future.
I recommend you make time to read this report: electrification is the future.