Residents in a coastal NSW community will now be eligible for $5.4 million in subsidies that aim to create Australia's first net-zero suburb.
The Electrify 2515 Pilot program would allow 500 eligible households in Thirroul to obtain grants to buy electric appliances like hot water, cooking and heating and cooling systems to replace gas appliances.
Residents with solar panels can also get help covering the cost of a home battery.
Thirroul resident Laura Scalafiotti has already begun the journey to electrifying her home, installing solar panels and an electric air conditioner.
She said public subsidies will help her entirely remove her home's carbon footprint.
"We would like to replace our hot water heater and then get a proper induction stove down the line, then get a battery," she said.
"With the amount of solar we produce we should be able to rely very little on the grid."
Electrify 2515 has confirmed the subsidies will be scaled according to income.
Federal Energy Minister Chris Bowen said Thirroul put forward the strongest case to be selected the suburb for the first trial. (ABC Illawarra: Tim Fernandez)
Households taking home less than $78,000 in pre-tax earnings can apply for 70 per cent of costs of whitegoods purchases, with a total rebate of $10,000.
Households earning $78,001 to $208,000 can receive 50 per cent of costs up to $8,000, while those earning over $208,000 are capped at a $5,000 benefit.
The Electrify 2515 has estimated that households that go entirely electric will save more than $150,000 over 15-years.
The project is the brainchild of engineer and renewable electricity advocate Dr Saul Griffith, who helped design the program.
One of the objectives of the trial is to prove that the energy grid can handle the electrification of most households.
While there will be some up-front costs, Dr Griffith said the trial will also demonstrate that switching to electric goods makes sense financially.
"We buy cheap machines today with a subscription to petrol and gas that is really expensive," he said.
"When you buy solar it is like buying 20 years of really, really cheap electricity up front and using that to power your appliances will save money.
"Finance of electrification is a cheaper way to run a household than paying cash every week for fossil fuels."
Dr Saul Griffiths says the pilot aims to prove electrifying your home makes financial sense. (ABC Illawarra: Justin Huntsdale)
Dr Griffith admits there isn't enough money to completely decarbonise Thirroul, but that is the ultimate goal.
Energy Minister Chris Bowen, who attended the announcement, said Thirroul was chosen for the electrification program because it put forward the most advanced bid.
"I know here in [postcode] 2515 the community is all in and wanted to make this journey a reality and wanted to make it a positive one for people who participate," he said.
"To ensure that the country benefits from renewable energy, the planet benefits from renewable energy but the households benefits as well.
"The cheapest form of energy that's ever been known to humankind is what we have the opportunity to roll out more and more across our country."
Energy Minister Chris Bowen said the trial will run until 2027 but the government will be seeing insights sooner than that. (ABC Illawara: Justin Huntsdale)
The electrification trial announcement came on the same day details emerged that a major proponent for offshore wind in the Illawarra won't be submitting a licence bid to build turbines.
Australian company Oceanex partnered with Norwegian multinational Equinor and was expected to bid to build turbines in the declared zone stretching from Stanwell Park to Kiama.
But Oceanex has removed all information on the bid from their website and referred all enquiries to Equinor.
Oceanex Energy has confirmed it has abandoned its Illawarra project and will focus on its Newcastle wind farm instead. (Supplied: Oceanex Energy)
Equinor said in a statement the decision not to submit a feasibility licence application was made as part of an ongoing review of the early-stage project investments.
"As part of the decision, we carefully evaluated risk factors that are currently impacting the global industry and conducted project-specific and site-specific assessments," a spokesperson said.
"The decision allows us to focus on the Novocastrian Offshore Wind project."
Alex O'Brien from the Illawarra Chapter of Responsible Future, which opposes offshore wind energy projects, said a number of factors may have influenced their decision.
"We definitely believe the community backlash has had a significant influence, the Senate inquiry into offshore wind and the discovery that the zone is going to be only 25 kilometres from Cronulla [in southern Sydney]."
But director of the Energy Futures Network at Wollongong University, Ty Christopher, said the decision is unlikely to have a major impact on the industry.
"I don't think it signals the death knell of an entire industry or of a particular project," he said.
"I mean if one of our supermarket chains were to suddenly close one store I don't think they would be saying it's the end of all grocery retailing."