UNSW Sydney researchers say consumers need trusted, timely and personalised guidance as they navigate increasingly complex decisions about electrifying their homes and businesses.
Australians trying to electrify can face an overwhelming mix of advice, technical information and competing claims, according to a new report.
It has found consumers do not simply need more information. They need information that is trusted, timely and relevant to their circumstances.
Researchers from UNSW’s Collaboration on Energy and Environmental Markets (CEEM) drew on 26 semi-structured interviews, three focus groups and 389 survey responses involving households, small businesses and electrification professionals.
They found wide variation in people’s understanding of electrification, from highly engaged consumers to people unsure about basic features of their own homes and appliances.
“The sheer quantity of information available to consumers is one significant constraint on electrification,” said UNSW's Dr Mike Roberts, co-author of the ‘Understanding Information Needs for Consumer Electrification Decisions’ report.
“The issue with electrification is that we can’t make generalisations, because it very much depends on the specifics of each household,” said Dr Mike Roberts.
“The technical requirements, upfront costs and ongoing bill savings will all be different for each household, so we need to take people through a process – providing the right information at the right time to help them learn and make the right decisions.”
The report identifies common misconceptions that can make electrification appear more difficult or expensive than necessary. These include flawed beliefs that induction cooktops must have three-phase power, that EVs always need fast home charging, or that electrification necessarily requires major electricity-connection upgrades.
The researchers say the common misconceptions can lead consumers to overestimate costs. Focusing only on upfront expenditure can also obscure potential longer-term savings from more efficient electric appliances.
But the report cautions against reducing electrification decisions to cost alone. It says consumers are also influenced by comfort, performance, environmental concerns, resilience, convenience, housing tenure, life events, the condition of existing appliances and (particularly for small businesses) aversion to disruption.
"For many households, electrification is likely to happen gradually as appliances are replaced or homes renovated, rather than through a single whole-of-home upgrade," said Dr Mike Roberts.
"The research also highlights the importance of who provides information. Friends, family and tradespeople can play a major role, while outdated advice, misinformation or poorly targeted information can make decisions harder."
Recommendations
The report makes 29 recommendations, including:
• clearer, more coordinated and independent information;
• decision-making tools tailored to individual circumstances;
• clearer guidance on when electrical upgrades are, and are not, required;
• stronger training and support for installers; and
• better coordination of rebates, standards and electrification policy.
The researchers also stress that not everyone has equal control over electrification decisions. Renters, in particular, may face significant barriers because they cannot easily change appliances, wiring or their homes.
“One of the recommendations is for an improvement in energy service level protections for renters in general, and support for high-quality upgrades for the rental stock, including through minimum rental standards processes occurring at state level,” Dr Roberts said.
The report was funded by Energy Consumers Australia through its Grants Program.
"Encouraging electrification of Australia's homes and small businesses is essential,” Brian Spak, General Manager, Advocacy and Policy at ECA said.
“Electrification has countless benefits: all-electric properties are cheaper, healthier and more comfortable to run.
"Australians have shown time and time again that they will lead the economy towards a better energy future when the direction is clear and the support is there. Electrification can be the next chapter, if governments give households a clear signal and the support they need to act.
"As this vital report outlines, consumers need access to clear, unambiguous advice, coupled with robust policy settings from governments, to ensure they can electrify, no matter what their circumstances are."
