A new era of residential energy consumption is emerging in Australia in response to rising energy prices and environmental concerns. Driven by ‘prosumers’, so named as they both produce and consume resources, including energy, this emerging market has the potential to reshape homes of the future and it has already started, but prosumers need help.
According to the Australian Government's Department of Industry, Science, Energy, and Resources, households accounted for 43% of all Australian greenhouse gas emissions in 2019. By producing their own green energy and electrifying their homes, prosumers will change this, as the first to live in net zero – or less – homes.
To do this, prosumers are choosing solar and smart technology to reduce their bills, and electric vehicles (EVs) and electrical appliances to reduce their reliance on fossil fuels. Often, this journey to net zero starts with the shock of energy bills, which according to the Australian Competition and Consumer Commission's (ACCC) latest report, rose by 61% between 2008-2020 for the average Australian household.
This bill shock is spurring more Australians to find savings, but the path is complex and confusing. Information overload, a lack of trust in energy suppliers, data safety concerns, changing policies and the speed of perceived tech obsolescence are all holding potential prosumers back.
To secure the future of green Australian homes, the energy industry and government must work together to educate citizens and support them to create their own energy ecosystems.
Fortunately, there is a clear entry point for the ‘prosumer home of the future’, in its energy management system, which will act as a central hub linked to solar panels and batteries, including one or more electric vehicles (EVs). These technologies are already here and growing in popularity. By the end of 2020, solar panels were fitted to 32.3% of detached homes.
The rise in popularity of EVs is also contributing to the prosumer movement. According to the Federal Chamber of Automotive Industries (FCAI), electric vehicles' sales in Australia in January 2023 increased by 360% compared to the previous year.
This trend is expected to continue as more affordable models enter the market and the charging infrastructure improves, including residential options like Schneider Electric’s new EVlink model. These at-home options will transform the way we think about refuelling, making going to a petrol station inconvenient for day-to-day driving and encouraging greater reliance on electrical energy.
However, challenges remain for prosumers, particularly when it comes to navigating the complex and constantly evolving energy market. This is where electricians can step in and be the trusted guide they need. As an industry, they can create a legacy as the enablers of a greener future.
Electricians today are already supporting smart tech, solar panels, and EVs, but tomorrow they will be taking centre stage in the building and renovation journey as the electrical infrastructure of homes becomes as important as bricks and mortar. Opportunities for new business models and services will emerge, such as subscription options, annual ‘home rego’, and energy efficiency consulting. These will all play a significant role in helping prosumers to achieve net zero as their homes become increasingly technologically advanced.
The Australian Government has recognised the importance of prosumers and their role in transitioning to a clean energy future. Recently, it passed the Clean Energy Finance Corporation Amendment (Grid Reliability Fund) Bill 2022. The bill establishes a $4 billion fund to support the development of new, reliable, and affordable energy generation, transmission, and storage technologies. This is a significant investment in the future of Australia's energy system and will create new opportunities for electricians and other energy professionals.
The prosumer movement is reshaping the residential electrical energy industry and the very function and fabric of our homes. While prosumers face numerous challenges, they are also driving innovation and change, with new technologies and business models emerging to meet their needs.
As the enablers of a greener future, electricians have a necessary role to play in guiding prosumers on their journey to net zero, while the energy industry and government support this new emerging market to help reduce our nation’s carbon emissions.
