Agriculture

The switch is already underway on Australian farms

Irrigation pumps account for 25 to 35 per cent of on-farm diesel use in cropping and cotton regions, and they're ready to electrify now.

Sector opportunity: Electrify the equipment that's ready now

Farmers keep this country fed, and they do it through drought, flood and everything in between. But Australian farms run heavily on imported diesel, leaving families and communities exposed to volatile global oil markets that they cannot control. Electrifying farming equipment and powering day-to-day operations with affordable renewable electricity will cut costs, lift productivity and strengthen the resilience of Australia's agriculture.

25-35%

Irrigation pumps account for 25 to 35 per cent of on-farm diesel use in cropping and cotton regions, and they're ready to electrify now.

Efficient electric alternatives exist for refrigeration, processing, hot water and stationary power, all able to run on the solar and batteries farmers are already installing.

While there have never been more options, outdated rules are slowing farmers down

Right now, a farmer can't share power they generate on one title with a shed or pump on the title next door, a barrier that has no equivalent for diesel. An Electrified Farming program would fund the switch for the equipment that's ready now, and give more farmers control over how they store, share and use their own power the way they've always used diesel.

Network tariff, metering and connection rules stop farm businesses exporting and sharing energy across property titles.

Reform would let farmers get full value from the solar and batteries they have already invested in.

Target outcome

Modelling* shows Australia can power a greater share of agriculture with electricity. * Climateworks/EEC

7%

Today

Share powered by electricity today

By 2035

By 2035

Share powered by electricity by 2032

Case study

Electrified farming in Narromine

Cara and John are demonstrating how electrification and renewable energy can help Australian farmers cut costs, reduce emissions and improve the productivity of their operations.

Cara and John are demonstrating how electrification and renewable energy can help Australian farmers cut costs, reduce emissions and improve the productivity of their operations.

Cotton growers Cara and John were spending around $300,000 each year using diesel to pump water across their property near Narromine. Seeking a more cost-effective and sustainable solution, they began exploring how renewable energy and electrification could reduce their reliance on diesel. Their first step was installing a solar-diesel hybrid pumping system, which reduced fuel consumption and saved them around $180,000 in its first year of operation. While this delivered significant benefits, the absence of battery storage has limited the system's ability to optimise the use of renewable energy. Encouraged by these early results, Cara and John investigated the benefits of connecting their pumping infrastructure to the electricity grid. With support from their energy provider and an Accredited Service Provider, they assessed connection costs, payback periods and the most effective pathway to electrification. The results demonstrated a compelling business case. Using electricity to move water across the farm costs less than half as much as diesel, while reducing emissions by up to 70 per cent when combined with on-farm renewable energy generation. With an expected payback period of two to four years, the project offered clear financial and environmental returns. While grid connection costs and network constraints can present challenges for some farming businesses, electrification opens up significant opportunities for regional communities. Once connected to the grid, farms can adopt technologies such as battery storage and electric agricultural machinery and, in some cases, export surplus electricity to neighbouring properties. Case study credit: Essential Energy.

The policy ask

An Electrified Farming program would accelerate the switch for equipment where electric alternatives are already available and the savings are immediate, by offering: Funding to cover electrified farm equipment</li><li>A cluster demonstration to prove the switch at scale. Alongside the program, regulatory reforms would level the playing field between electricity and liquid fuels like diesel and biofuels, so farm businesses can export and share energy across property titles.

Support the installation of electrified farm equipment

Support the installation of electrified farm equipment including irrigation pumps, refrigeration and processing equipment; this could be achieved by expanding the On Farm Connectivity Program, or a similar funding model such as the Small Business Energy Incentive.

Funding a cluster demonstration

Funding an ARENA-style cluster demonstration across 20 to 30 sites in a single irrigation district that integrates farm electrification, targeted network upgrades and integration with freight, proving the switch at scale and giving neighbouring farmers the confidence to follow.

Key reform

Accelerate the shift to electrification already underway to build more productive, competitive and resilient Australian farms.

New 'Electrified farming' program to give farmers choice to replace equipment well suited to electrification.</p><p>Remove regulatory barriers to on-farm energy sharing that do not exist for liquid fuels.

The movement

Electrify Australia is a growing movement of consumer, business, civil society and research groups advocating for a national effort to accelerate electrification, to secure an affordable and resilient energy future for everyone.

Electrification means swapping gas, diesel and petrol for electric alternatives powered by renewables, so households, businesses and industry run on cheaper energy that's made in Australia.