Rewiring Australia has declared $1.6 billion in new spending as Australia’s first ‘electrification budget’.

The budget will simultaneously address two of Australia’s biggest challenges, reducing cost of living pressure and cutting greenhouse emissions.

Rewiring Australia co-founder and chief scientist Dr Saul Griffith says this budget is a profound reset of climate and energy policy after a lost decade under the previous government.

“We are excited to work with the government over the coming year to optimise the energy system to this commitment to electrification and make these investments go further, and further cut energy costs,” Saul says.

“This is Australia’s first electrification budget. It positions us to become a world leader in the efficient electric energy system of the future. It demonstrates federal ministers have worked hard to start the massive shift towards a new energy paradigm across the economy.”

He adds that the electrification budget builds on Australia’s love affair with rooftop solar. It will help households to realise cost savings from substituting expensive gas machines for clean, electric alternatives.

“The investment allows us to use abundant Aussie wind and sunshine to power more of our driving, cooking and heating, simultaneously slashing energy bills and carbon emissions. We are excited that the government is making a substantial downpayment on an answer to the US Inflation Reduction Act,” Saul explains.

In his budget speech, Treasurer Jim Chalmers announced $300 million for electrification and energy performance upgrades for social housing and $1 billion in new funding for the Clean Energy Finance Corporation to offer solar, storage and electric upgrade finance to more than 170,000 homes.

This is in addition to the recent announcement of a new 20% tax deduction for small businesses that invest in batteries and other electrical devices which is worth about $314 million over the forward estimates.