Why Electrify? Understanding the Energy Market and Your Role in the Transition 
Victoria is shifting rapidly towards a renewable energy future. Electricity currently makes up around 22 percent of total energy use in Australia, but this is expected to grow to 90 percent within the next 20 years. In 2015 on one day, renewable energy made up 30% of electricity supply in any given moment. By 2025, the biggest day had jumped to 75%. South Australia regularly reaches 100% renewable energy and often exports to Victoria. On 6 November 2024, rooftop solar alone provided an estimated 43% of electricity across the National Electricity Market (NEM).
Gas, on the other hand, is becoming more expensive. Supplies from the Bass Strait have been largely exhausted, and Victoria is now increasingly reliant on gas piped in from South Australia and Queensland. As more households move away from gas, fewer customers are left paying to maintain the infrastructure, so prices will continue to rise.
Understanding a few key concepts will give you the vocabulary and help you make informed decisions.
- Power, measured in kilowatts (kW), refers to the electricity your home is using at any one time.
- Energy, measured in kilowatt hours (kWh), refers to how much power you use over a period of time.
Solar systems are typically measured in kilowatts. Most homes in Victoria install solar arrays between 3 and 10 kW, which refers to the maximum capacity of the system on a sunny day. If you have excess energy, you can sell it back to the grid, but there is often a 5 kW export limit.
The NEM connects electricity users across Victoria, New South Wales, Queensland, South Australia and Tasmania. Wind farms, rooftop solar and utility-scale solar farms feed into this system and help to lower electricity prices.
Get free expert advice
If you are considering electrifying your home, or would like help understanding how solar works, Graham Moore can help. He is a retired Associate Professor of Environmental Engineering who now volunteers with DCAN to support Darebin residents on their electrification journey. He offers free one-on-one guidance based on your home, needs and budget.
Resources:
National Electricity Market (NEM) explained
Quick Links
- Why Electrify? Understanding the Energy Market and Your Role in the Transition
- Getting Ready: What to Check Before You Begin
- Make Your Home More Energy Efficient
- Make the Switch: Heating, Hot Water and Cooking
- Solar, Batteries and EVs: Powering Your Future
- Renters: What You Can Do Now
Darebin Climate Action Now (DCAN) is run by volunteers who want to accelerate the transition to a clean energy future. The information on this website, and provided by our volunteer expert Graham Moore, is general in nature. We recommend you seek independent advice applicable to your individual circumstances.