Blazing A Trail

INTRODUCTION

Fireplaces, especially the fire element within them, are a sought-after feature for the modern home. Once a necessity for warmth and comfort, fireplaces are now used as either a calming element or a statement piece in contemporary design. They have evolved to become the focal point of both indoor and outdoor environments, creating a warm, inviting space for family gatherings and social connection. 

Over the years, different types of fireplaces have grown in popularity depending on the needs of the time. For example, traditional wood-burning fireplaces were commonplace in older homes. Gas fireplaces soon came into prominence due to their ease of use.

More recently, electric fireplaces have gained popularity, especially as improvements to ‘flame effect’ technology have resulted in more authentic-looking flames. While the latest electric models are impressive in their range of features, some designers and specifiers are unaware of the growth in this category. For many, electric fireplaces are still perceived as less authentic, less powerful and less value for money than their gas counterparts.

Several broader social, economic and industry trends are gradually overturning these misconceptions. Today’s market is characterised by a growing environmental awareness among consumers and calls to move away from energy derived from fossil fuels. This is combined with the rising cost of natural gas coinciding with the Australian government’s focus on renewable energy sources. Finally, there is the recent emergence of highly-efficient electric fireplaces with ‘smart’ technological features and realistic flame patterns that improve markedly upon older ‘flame’ technology.

In this whitepaper, we explore these developments and highlight the key reasons why electric fireplaces are overtaking gas as the more environmentally-friendly, user-friendly, budget-friendly and aesthetic choice for modern Australian homes.

THE GAS DILEMMA

The environmental impact of gas

There is growing concern for gas as an industry, particularly from eco-conscious consumers concerned about the ongoing impact of fossil fuels on the natural environment. In the past, natural gas was considered the go-to option for cooking, water heating and space heating due to being a ‘cleaner’ fossil fuel. Compared to oil or coal, burning natural gas for energy results in fewer global warming emissions and fewer emissions of nearly all types of air pollutants.

However, natural gas may be a much ‘dirtier’ energy source than we first thought. Natural gas consists of mainly methane and other hydrocarbons, and is formed naturally underground when the remains of plant and animal matter are exposed to heavy pressures. Methane gas leaks from the ground occur naturally as well as during the gas extraction process.

Methane is a super-potent greenhouse gas, meaning it is 80 times more potent at warming than carbon dioxide over a 20-year period.2 A 2015 report by the Environmental Defense Fund posited that the natural gas released during the extraction process may negate a significant proportion of the clean-burning benefits associated with this energy source.

Natural gas advocates argue that the short-term greenhouse gas reductions from switching away from coal-fired power are needed to smooth the transition to a carbon-neutral energy future. Nevertheless, studies

show that natural gas is a highly emissions-intensive energy source and a major driver of Australia’s expanding carbon footprint. Science and policy institute Climate Analytics found that between 2015 and 2020 the emissions growth from natural gas will effectively wipe out the carbon pollution avoided through the 23% renewable energy target.

THE RISING COST OF GAS

Industry trends indicate that the price of gas is on the rise, which may give homeowners pause when selecting gas-powered appliances. In 2021, Australia’s competition watchdog, the Australian Competition and Consumer Commission, forecasted that gas prices would continue to spike across the south-eastern states over the next two years due to potential shortfalls in gas supply and increasing demand for gas around the world.

According to the report, while prices for contracted gas in the east coast market through to February 2021 remained at the lower levels observed during 2020, the tightening supply situation means these prices may not last.7 This is further supported by modelling in Victoria which suggests that gas prices will be unaffordable by the end of the decade with shortfalls in supply expected from 2022.

The rising cost as well as a lack of reliability in regional areas provides further reasons why gas may no longer be an attractive energy source for a large number of Australian domestic users.

TOWARDS AN ALL-ELECTRIC HOME

In Australia, government subsidies are contributing to soaring rooftop solar installation numbers. Solar rebates are essentially financial discounts for households that install a renewable energy system. The number of Australian households enjoying the benefits of roof solar has risen to around three million.9 In 2020 alone, there were 378,451 rooftop solar installations – the most installations in the industry’s history.10 In fact, reports indicate that Australia leads the world for solar installations with a total installed capacity of just under 17GW nationwide.

The growth in rooftop solar installation has made an all-electric home powered by renewable energy a possibility. People are wanting to use the electric energy they are

generating for as much as possible, not only to reduce their environmental impact, but also save on cost. By using their own solar energy, domestic users avoid retail electricity charges and save money from using electric appliances during the day while their solar is generating.

Health is also a motivator, as burning gas puts carbon dioxide and nitrous dioxide (NO2) into the air. Exposure to air with high concentrations of NO2 can lead to health complications for people with asthma or other respiratory issues, and prolonged exposure can contribute to the development of those conditions. Studies have demonstrated the negative health impact of gas, especially in children who have an increased risk of having asthma in homes with gas stoves.