Why we did the pilot
Over 90% of our total emissions come from our home loan portfolio, so supporting our customers to buy, build or renovate energy efficient homes has a big role to play in meeting our climate action goals.
We do this already through products like our Clean Energy Home Loan. The Electrify Your Home pilot was developed to further empower customers to transition their homes off gas.
There are a range of benefits that come from going all-electric at home, including potential improvements for health and savings on energy bills. But there are also some challenges and upfront costs to consider, which is where our pilot came in.
What we did
We partnered with BOOM to give customers access to a free digital assessment of their household energy. The assessment considers a home’s energy usage, current systems and appliances, and calculates the potential impact on costs and emissions by switching to electric.
BOOM also connected customers with qualified suppliers and installers, or customers could use different suppliers of their choice. Customers had the option to make a free phone call appointment with the Yarra Energy Foundation to discuss their assessment and options.
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What we achieved and learned
Customer engagement
- Customers are positively engaged with home electrification and many customers are already considering going all electric.
- Melbourne-based customers generally had higher engagement with the pilot than regional customers. We considered the fact that many Melbourne local councils are focusing on electrification, with regular campaigns, communications and offers to residents. We’re considering how we could collaborate with local government as an important influencer on community awareness and readiness.
Customer experience
- Customers reported a good experience with understanding the steps and services provided by Bank Australia, BOOM and the Yarra Energy Foundation.
- However, there is a need for improvement on the customer experience with suppliers and installers, and we understand that this market is still evolving. We’re considering how we can collaborate with others to support the market to mature.
Trends and barriers
- The most popular upgrades in the pilot were heat pumps and induction cooktops. This is likely due to the Victorian Government heat pump subsidy, as well as these types of upgrades typically being less complex compared to upgrades like replacing a gas ducted heating system.
- Customers identified the upfront costs as the biggest barrier to going all-electric, strengthening the case for easy and appropriate financing solutions.
- We saw more customers making gradual switches than customers undertaking a full electrification retrofit. We’re considering ways we can help customers plan to electrify gradually, like being ready to switch appliances at end of life or considering what they can switch as part of a smaller renovations (like a kitchen or bathroom renovation).
What’s next
We know banks have an important role to play in the energy transition. The Electrify Your Home pilot has provided us with valuable insights into what is needed to help people get their homes off gas, and we’re now focused on how to build on what we’ve learned.
We’re working on making the BOOM digital home energy assessment available to more customers, developing our Clean Energy Loan Products, building our Electrify Your Home
website hub and scoping more opportunities to meet the diverse needs of our customers on home electrification.
