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With rising cost-of-living pressures, many Victorians are looking for ways to save money on their bills.

The good news is that all-electric homes save hundreds of dollars a year in energy bills. Plus, they are healthier to live in, and are better for the environment.

Savings for existing homes

Converting an existing home with solar panels from gas to electricity can save around $1,700 a year on energy bills. This is in addition to around $1,000 of savings each year from an existing 6.6 kW solar system.

Savings for new homes

Going all-electric puts around $1,000 per year back in the pockets of new-home owners, or over $2,200 with solar installed. A new Victorian detached home which has been built all-electric, will spend around $2,600 on energy bills compared to a new dual-fuel home which will spend around $3,600 on energy bills.

As part of the reforms under our Gas Substitution Roadmap, new homes requiring a planning permit will be required to be all-electric from 1 January 2024. This means new homes and residential subdivisions that require a planning permit cannot connect to the gas network.

Want to know more? Read the FAQs.

How do dual-fuel and all-electric homes compare?

A home using gas and electricity as energy sources
A home using electricity and solar panels for energy.
Dual-fuel homeAll-electric home
2 bills for energy – electricity and gas – and 2 service charges to the property1 bill with 1 service charge
More expensive to runCheaper to run
Gas prices are increasing faster than electricity pricesProtected by the Victorian Default Offer
Fewer retailers for gas means less choiceMore electricity retailers to choose from
Fossil fuelledMore environmentally friendly when using renewable energy

4 steps to move away from gas and save money

Now you know that all-electric homes are the gold standard – saving you money and making your home greener – you might be wondering how to make the final move away from gas.

Here are 4 simple steps to start your journey to total home electrification:

1. Make a list

Make a list of all the appliances that you run on gas.

2. Book a Scorecard Assessment

Consider booking a Residential Scorecard Assessment. This will help you plan your move away from gas to a cleaner, greener – and cheaper – home. Discounted Scorecard assessments are now available under the Victorian Energy Upgrades program. Contact your local assessor for more information.

3. Consider your budget

Determine your budget and prioritise the most energy intensive appliances to electrify. When major gas appliances, such as gas heating or hot water systems reach the end of their life, it’s a great time to consider upgrading them with an efficient electric option through the Victorian Energy Upgrades program.

4. Find out about available discounts and rebates

Visit the Victorian Energy Upgrades program to find out more about discounts.

Also visit the Solar Homes Program to learn about rebates for solar PV systems and hot water and loans for solar batteries for eligible households.

Programs to help you go all-electric

The Victorian Energy Upgrades (VEU) program provides rebates to electrify your home:

  • About $420 to replace a gas hot water heater with a heat pump water heater.
    About $900 to replace a non-ducted gas heater with a non-ducted reverse cycle air conditioner.
  • About $3,600 to replace a ducted gas heater with a ducted reverse cycle air conditioner.

Did you know?

The reverse cycle air conditioner that cools your home in summer, can keep your home warm in winter. It’s also your cheapest and most energy efficient heating source. Check your instruction manual on how to switch to ‘heat’ mode.

Don’t have a reverse cycle air conditioner? Make the switch and save around $900 on appliance costs through the VEU program.

Solar Victoria offers incentives for eligible homes for the following:

The Residential Efficiency Scorecard rates your home's energy use and comfort, and provides tailored recommendations for improvements.

Looking to improve the energy efficiency of your new home? Consider building your new home to 7 energy efficiency stars. This will reduce greenhouse gas emissions, make your home more energy efficient, more comfortable to live in and cheaper to heat and cool.

The State Electricity Commission (SEC) will establish a trusted ‘one-stop shop’ for Victorians, with pilot household solutions starting from next year – taking the guesswork out of the process and stepping people through the switch away from expensive fossil gas.

Stay ahead of energy prices

If your household can’t move away from gas just yet, there are other ways to lower your energy bills.

This includes ensuring you are on the best electricity plan with Victorian Energy Compare. following simple energy saving tips, upgrading to energy efficient appliances and investing to save long term through solar and batteries.

Support is available

We know that energy prices are impacting Victorian households. Find out what support is available if you need it - including rebates and discounts off your energy bills, assistance to understand your bills and how you are protected if you are struggling to pay your bills.

Victoria’s Gas Substitution Roadmap

The Gas Substitution Roadmap is helping our state navigate the path to net zero emissions and cut energy bills.

Page last updated: 07/06/24