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What is the Gas Substitution Roadmap?

The Gas Substitution Roadmap is helping our state navigate the path to net zero emissions while cutting energy bills and ensuring reliability.

The roadmap outlines how we drive down bills and cut carbon emissions using:

  • energy efficiency
  • electrification
  • renewable gases (biomethane and renewable hydrogen).

The roadmap will help empower Victorian households and businesses to embrace sustainable alternatives to fossil gas and enhance access to an affordable, secure, reliable and safe energy supply.

Our Gas Substitution Roadmap update provides important information about the progress made since the release of the first roadmap in 2022.

Why do we need to move away from fossil gas?

Over 2 million Victorians use gas in their homes and businesses – more than any other state or territory

The Victorian gas sector contributed to around 15% of our state’s net greenhouse gas emissions in 2023 and must play its part in reducing emissions over time.

And while our state has been a consistent producer and net gas exporter, helping to meet the needs of Victorians and Australians in east coast gas markets, moving away from fossil gas is a key part of our renewable energy future.

This must be balanced with the need for reliable, safe, affordable energy.

Going more electric in our homes not only takes the pressure off gas demand it also limits consumers’ exposure to international prices.

Efficient electric appliance upgrades are putting money back in the pockets of Victorians.

The average existing Victorian home could save around $2,230 per year by going all-electric - when paired with an existing solar PV system. Without solar panels, converting an existing home to all-electric will save around $1,900 per year.

A new, all-electric home running on solar saves up to $1,920 a year on energy bills. If you don’t have solar, a new all-electric detached home will save around $990 per year, compared with a home that also uses gas.

What are the key reforms related to the Gas Substitution Roadmap – and how does this affect me?

  • Measures already in place to drive rapid electrification for homes and businesses:
    • in July 2023, the Australian Energy Regulator capped gas abolishment fees at $220 (ex GST), further lowering the cost of going all-electric
    • from July 2023 all new government buildings are to be built all-electric, including new schools and hospitals
    • from 1 January 2024, new homes requiring a planning permit are required to be all-electric
    • mandatory 7-star efficiency standards for new home construction from May 2024
    • from April 2024, the government prohibited Victorian gas distribution businesses from offering inducements to connect to gas or purchase and install gas appliances
    • from 1 January 2025, customers pay the full up-front costs of a new gas connection instead of the cost being shared by all gas-users under the updated the Gas Distribution Code of Practice published by Essential Services Commission. This brings gas in line with the current practice for new electricity and water connections
    • expansion of the VEU program to include induction cooktops.
    • beginning 1 January 2027 the phased introduction of new building electrification regulations as well as new and strengthened minimum energy efficiency standards for rental homes. Visit electric and efficiency standards for buildings to learn more.
  • Supporting reforms:
    • development of renewable gas sector in Victoria
    • focus on a responsible and balanced approach to maintaining adequate fossil gas supplies
    • build industry skills and capacity.

Renewable Gas Directions Paper

Scaling up a thriving Victorian renewable gas sector is essential for Victoria to meet the legislated target of net-zero emissions by 2045.

Renewable gases – such as biomethane and renewable hydrogen – will play a targeted but critical role in decarbonising industrial applications and support Victoria’s commitment to be net-zero by 2045.

In December 2024, the Victorian Government released the Renewable Gas Directions Paper to seek feedback on a potential model for a Victorian renewable gas scheme. The government’s response to this process will be finalised in 2026.

Concurrently, the Victorian Government continues to advocate for the establishment of a national renewable gas scheme. This advocacy has catalysed a policy development process through the Energy and Climate Change Ministerial Council (ECMC). Victoria strongly supports a national mechanism that will ensure renewable gases can decarbonise industrial energy use.

To read more, visit Industrial Renewable Gas Guarantee Directions Paper.

What consultation has been undertaken as part of the Gas Substitution Roadmap?

The Victorian Government continues to engage with stakeholders across the energy, manufacturing, business, building and construction sectors, installing trades, local government, environment and consumer groups during the gas sector’s transition to net zero emissions.

Feedback to date has included:

Page last updated: 17/03/26