home electrification

The Right Order to Electrify Your Home (And Why Most People Get It Wrong)

Summary: The optimal order to electrify an Australian home is: 1) Solar panels (generates the cheap electricity everything else runs on), 2) Heat pump hot water (highest energy use appliance, runs on solar with a timer, saves $800-$1,200/year), 3) Reverse-cycle heating/cooling (replaces gas ducted, saves $400-$900/year), 4) Battery storage (stores excess solar for evening use, enables VPP income), 5) Induction cooktop (lower energy impact but eliminates gas supply charge of $250-$400/year), 6) EV charger (replaces petrol cost entirely, saves $1,500-$3,000/year). This sequence maximises solar self-consumption at each step and avoids overloading your electrical infrastructure.

By · · Updated · 10 min

Why Sequence Matters

Most homeowners approach electrification as a series of independent decisions: "I'll get solar now, maybe a heat pump later, and eventually an EV charger." Each decision is made in isolation, often years apart, without considering how they interact.

This approach creates three problems:

  1. Electrical infrastructure bottlenecks — Your switchboard and supply may not handle everything at once
  2. Missed solar utilisation — Each new electric load should be timed to run on solar, not grid power
  3. Wasted money on interim solutions — Replacing a gas heater before installing solar means running it on expensive grid electricity

The correct approach treats electrification as a single project with a defined sequence — even if you execute it over 2-5 years.

The Optimal Sequence

Step 1: Solar Panels (The Foundation)

Why first: Everything else runs on electricity. If that electricity comes from the grid at $0.33-$0.45/kWh, your "savings" from electrification are marginal. If it comes from your roof at $0.00/kWh, every subsequent step delivers maximum return.

What to size for: Don't size solar for today's consumption. Size it for your fully-electrified future consumption:

  • Current usage: ~20kWh/day (typical 4-person home)
  • Add heat pump: +3-4kWh/day
  • Add reverse-cycle heating: +5-8kWh/day (winter)
  • Add EV charging: +8-12kWh/day
  • Future total: 36-44kWh/day

A 10-13kW system (not 6.6kW) is the correct starting point for a home planning full electrification.

Cost: $8,000-$14,000 installed (10-13kW)

Annual value: $2,500-$4,500 in avoided grid imports

Step 2: Heat Pump Hot Water (Highest ROI)

Why second: Hot water is 20-30% of household energy. A heat pump uses 65-80% less electricity than a resistive tank and can be timed to run during peak solar hours (10am-2pm). It's effectively free hot water.

The solar interaction:

  • Heat pump draws 1-1.5kWh to heat a full tank
  • Timed to midday = runs entirely on solar
  • Stores 10-15kWh of thermal energy for evening/morning use
  • It's the cheapest "battery" you can buy
  • Cost: $2,000-$3,500 after rebates

    Annual saving vs gas: $800-$1,200

    Payback: 2-3 years

Step 3: Reverse-Cycle Heating & Cooling (Replace Gas Ducted)

Why third: Space heating is the second-largest energy consumer in winter. Gas ducted heating costs $3-$6/hour to run. A reverse-cycle system costs $0.50-$1.50/hour — and $0.00/hour when running on solar during the day.

The upgrade path:

  • Replace gas ducted with split-system reverse-cycle units (zone-based)
  • Or replace with a ducted reverse-cycle system (whole-home)
  • Either way: 300-500% more efficient than gas
  • Cost: $3,000-$8,000 (split systems) or $8,000-$15,000 (ducted)

    Annual saving vs gas ducted: $400-$900

    Payback: 4-8 years (but comfort improvement is immediate)

Step 4: Battery Storage (Store Your Excess)

Why fourth (not second): A battery's value depends on how much excess solar you have. After adding a heat pump and heating to your solar system, you've increased daytime self-consumption. The battery captures what's left — which is still significant, but less than if you'd installed it before electrifying loads.

Sizing after electrification:

  • Your evening consumption is now higher (electric heating, electric cooking)
  • But your daytime self-consumption is also higher (heat pump, heating pre-charge)
  • Optimal battery size: 10-13.5kWh for most fully-electrified homes
  • Cost: $8,400-$13,000 installed

    Annual value: $1,500-$2,500 (arbitrage + VPP)

    Payback: 4-7 years

Step 5: Induction Cooktop (Eliminate Gas Supply)

Why fifth: The cooktop itself uses relatively little energy (1-2kWh/day for a typical family). The real saving is eliminating the gas supply charge — $250-$400/year just to have the gas connection, regardless of usage.

The trigger: Once hot water and heating are electric, the cooktop is often the last gas appliance. Replacing it allows you to disconnect gas entirely — eliminating the supply charge permanently.

Cost: $2,000-$4,000 (cooktop + potentially new circuit)

Annual saving: $250-$400 (supply charge) + $100-$200 (efficiency gain)

Payback: 4-8 years (but accelerates once gas is fully disconnected)

Step 6: EV Charger (Replace Petrol)

Why last: An EV charger draws 7-22kW — more than any other household appliance. Your electrical infrastructure needs to handle this on top of everything else. By this stage, your switchboard has been upgraded (Step 1-2), your solar system is oversized (Step 1), and your battery can buffer charging loads (Step 4).

The economics:

  • Average Australian drives 15,000km/year
  • Petrol cost: $2,500-$3,500/year (at $1.80-$2.20/L)
  • EV charging on solar: $150-$300/year
  • EV charging on off-peak grid: $400-$600/year
  • Cost: $1,500-$3,000 (charger + installation)

    Annual saving vs petrol: $1,500-$3,000

    Payback: 1-2 years (charger only — the car is a separate decision)

The Full Sequence Summary

StepInvestmentAnnual SavingCumulative Annual SavingPayback
1. Solar (10kW)$10,000$3,500$3,5002.9 years
2. Heat pump HW$2,500$1,000$4,5002.5 years
3. Reverse-cycle$6,000$650$5,1509.2 years
4. Battery (13.5kWh)$10,500$2,000$7,1505.3 years
5. Induction cooktop$3,000$350$7,5008.6 years
6. EV charger$2,000$2,500$10,0000.8 years
TOTAL$34,000$10,000$10,000/year3.4 years (blended)

The 10-year position: $34,000 invested → $100,000 in cumulative savings → net gain of $66,000 over 10 years. Plus: no gas bills, no petrol bills, and a home that's worth more at resale.

Common Mistakes (And How to Avoid Them)

MistakeWhy It HappensWhat It Costs
Installing battery before solar"I want backup power"Battery charges from grid at $0.33/kWh instead of solar at $0.00
Undersizing solar"6.6kW is standard"Not enough generation for future loads — need to add panels later ($3,000+ retrofit)
Electrifying before upgrading switchboard"I'll deal with it later"Multiple electrician visits, potential safety issues, higher total cost
Replacing gas cooktop before gas heating"I want induction now"Still paying gas supply charge for heating — no supply charge saving yet
Installing EV charger on existing wiring"It's just a plug"Overloaded circuits, tripped breakers, potential fire risk

The C.A.B.L.E. Method™ in Practice

This sequence IS the "L" (Load Electrification) in the C.A.B.L.E. Method — but it only works when informed by the other four decisions:

  • C (Current Analysis): Your consumption data determines the right solar size and battery timing
  • A (Asset Optimisation): Choosing a hybrid inverter at Step 1 saves $2,000 at Step 4
  • B (Battery Strategy): Market timing and VPP availability affect when Step 4 makes sense
  • E (Energy Roadmap): Planning all 6 steps from Day 1 avoids costly retrofits

Cable Co's Energy Independence Assessment™ maps this entire sequence for your specific property — including infrastructure requirements, optimal timing, and total investment modelling across 2-5 years.

Cable Co | 1800 117 177 | Vetted Tier 1 Contractor | ABN 64682354605

Frequently Asked Questions

What order should I electrify my home?

The optimal order is: 1) Solar panels (foundation for everything else), 2) Heat pump hot water (highest ROI, runs on solar), 3) Reverse-cycle heating (replaces gas ducted), 4) Battery storage (captures excess solar), 5) Induction cooktop (eliminates gas supply charge), 6) EV charger (replaces petrol). This sequence maximises solar self-consumption and avoids infrastructure bottlenecks.

How much does full home electrification cost in Australia?

Full electrification (solar + heat pump + heating + battery + induction + EV charger) costs approximately $34,000 total. However, it delivers approximately $10,000/year in combined savings (eliminated gas, petrol, and reduced electricity costs), giving a blended payback of 3.4 years and a 10-year net gain of $66,000.

Should I get solar before a battery?

Always install solar before a battery. A battery without solar charges from the grid at $0.33-$0.45/kWh. A battery with solar charges for free. The battery's value depends entirely on having excess solar generation to store.

Can I electrify my home all at once?

You can, but it requires careful planning. Your switchboard, supply (single vs three-phase), and solar system must be sized for the full load from day one. Most households spread electrification over 2-5 years, starting with solar and heat pump (highest ROI), then adding battery, heating, cooktop, and EV charger as budgets allow.

When should I disconnect gas completely?

Disconnect gas once your last gas appliance (usually the cooktop) is replaced with an electric alternative. The gas supply charge ($250-$400/year) is a fixed cost regardless of usage — eliminating it is an immediate annual saving that requires no ongoing behaviour change.