For self-funded retirees, home electrification can cut energy bills, reduce exposure to petrol and gas prices, and add value to the home.

Self-funded retirees routinely compare term deposits, shares and managed funds when deciding how to invest their savings. Few would think to compare them with electrifying their home. They should.

Our experience suggests why.

In 2023, inspired by Saul Griffith’s The Big Switch, we electrified our Californian bungalow in Melbourne’s inner north. It has cut our energy bills by more than 80 per cent.

We stopped using gas and petrol altogether. By mid-2026, our annual household energy costs have fallen from more than $6,600 to less than $1,200.

What began as an environmental decision became something else: one of the best financial investments we have ever made.

What we changed in 2023

Over the course of 2023, we invested $55,296 in electrifying our home.

This expenditure included:

additional rooftop solar

a heat pump hot water system

reverse-cycle electric heating and cooling

We also replaced our internal combustion car with an EV.

We later used Victorian Energy Compare to shift to a retailer offering better rates and moved from a flat rate to a Time of Use tariff.

Our annual nett energy costs changed dramatically:

In the financial year 2025/2026 the nett energy cost dropped further to $1,131. 

These figures include........

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