Every machine, whether it is a car, a gas water heater, or a coal power plant, has a natural lifetime before it has to be scrapped or replaced. Gas hobs are expected to last for 13-15 years, while cars are closer to 20 years. So if your appliances, systems or vehicle are due to be replaced, your next purchasing decision should be electric. In most cases it won’t make sense to scrap a perfectly usable appliance, but in some cases, it actually makes financial sense to replace these machines (particularly cars) before their use-by date and if we use all our fossil fuel machines to the end of their lives, the world will just keep getting hotter. If you’re worried about the waste, it pays to put it in perspective: the amount of waste created by replacing an appliance is far less than the fossil fuel waste to keep that appliance going. 

If you’re building a new home, you get to start fresh and it makes no economic or environmental sense to have a gas connection. EVs are already cheaper to run than fossil fuel cars, even with the upfront costs and finance, and they are expected to reach price parity by 2026. Every new fossil fuel machine purchased or built now locks in years or decades of further emissions and increasing energy costs. 

Globally, the cost of heat pumps, electric vehicles, solar panels and batteries continues to fall due to economies of scale and higher than anticipated demand. This doesn’t necessarily mean you should wait, however. In New Zealand, fossil fuel prices are among the highest in the world and the price is expected to continue rising. Grid electricity prices are also expected to increase, and solar and batteries basically lock in the price of electricity for the next 15 years.

The earlier you go electric, the more fossil fuel costs you avoid, and the more savings you lock in. It’s cheaper to buy a more expensive electric appliance now, and to avoid the fossil fuel costs that you’d otherwise be spending, than to wait for electric appliances to come down in price and to pay fossil fuel costs the whole time while you’re waiting.

‍I’m renting. How can I electrify? 

Renters make up around one third of households in New Zealand. Some landlords may be open to installing solar panels and electric appliances, especially as it is likely to enhance the property value and attractiveness as a rental. You could calculate a value proposition and negotiate a slight rental increase in exchange for a larger power bill reduction, something often called a comfort levy. This means both the landlord and the tenants benefit - the landlord gets more rent and a more valuable property, the tenant gets a cheaper power bill, and the savings come from the sun.

Renters (especially if there is access to offstreet parking so they can charge at home) can get all the benefits of an electric vehicle and there are an increasing number of affordable second-hand options that can cope with most urban driving requirements, and portable induction stoves are available for those who don’t want to cook with gas, especially given the health impacts of indoor gas appliances. 

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Every home is different but, on average, homes currently using gas appliances and petrol vehicles could save around $1,500 per year (and around $4,500 per year if they can get a low interest loan) if they choose electric equivalents and get their electricity from a combination of rooftop solar, home battery and New Zealand’s highly renewable grid. 

Homes that use more power and hot water and use their vehicles more than others generally get the most savings through electrification. 

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The upfront costs are usually higher for electric appliances and vehicles, but they’re much cheaper over the long-run and the costs are much more stable. Even though a fossil fuel machine may be cheaper upfront, you are committing to many years of expensive and volatile fuel prices to run it. 

New Zealand is one of the first countries to reach what we call the 'electrification tipping point'. This means households and businesses can save money right now if they electrify their appliances and vehicles, even with the upfront costs and finance built in. 

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Electrification swaps some or all of the machines in our homes and businesses that run on fossil fuels for much more efficient electric equivalents and powers them with renewable electricity from the grid, rooftop solar and batteries. These technologies are available today and put everyday people in charge of accelerating achievable climate and energy solutions. 

Our lights, dishwashers and ovens may be electric, but there are still a lot of households that burn fossil fuels for water heating, space heating, driving and cooking and lots of businesses that rely on fossil fuel machines. While our electricity system is around 80% renewable, it’s important to remember that electricity is just one part of our energy system, and fossil fuels still account for around 70% of New Zealand's total energy use. 

Electrifying your fossil fuel machines - and particularly your car - will reduce your energy bills and is likely to have a bigger impact on your emissions than any other decision you make. 

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