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

Savings for existing homes

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.

Savings for new homes

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.

Residents of a typical new, all-electric detached home (without solar) will spend around $2,090 per year on energy bills, compared with around $3,080 per year for a dual-fuel (electric and gas) home.

New electrification and efficiency standards and regulations for Victorian buildings

We are taking action to ensure Victorian buildings – residential and commercial - are safer, more comfortable and healthier to be in - while saving you hundreds of dollars a year on energy bills and cutting emissions.

These changes introduce new building electrification regulations and set minimum energy efficiency standards for rental homes.

They will be phased in over 4 years, beginning from 1 January 2027.

There are a range of exemptions for situations where electrification or compliance with the standards is impractical or costly.

See what these changes mean for you: New electrification and efficiency standards and regulations for Victorian buildings.

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

Steps to move away from gas and save money

Now you know that all‑electric homes are the gold standard — helping you save money and reduce emissions — you might be wondering how to make the final move away from gas.

Here are some simple steps to start your journey to a fully electric home:

1. Make a list

Start by listing all the appliances in your home that currently run on gas, such as heating, hot water, cooking or clothes drying.

2. Consider your budget

Work out your budget and prioritise the most energy‑intensive appliances to replace first.

When major gas appliances, like heaters or hot water systems, reach the end of their life, it’s a great opportunity to upgrade to an efficient electric alternative through the Victorian Energy Upgrades program.

3. Check discounts, rebates and support

Visit the Victorian Energy Upgrades program to learn about available discounts on energy‑efficient electric appliances.

You can also explore the Solar Homes Program for rebates on solar PV systems and hot water, as well as loans for solar batteries for eligible households.

For extra help planning your transition, visit the SEC’s How to go electric page, which includes a DIY electric home planner.

If you’ve decided to electrify, you may also be wondering if you need to upgrade to 3-phase power or improve your switchboard to handle the increased load. Our guide will help you determine the best course of action for your household's electrical needs.

Programs to help you go all-electric

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

  • Up to $560 to replace a gas hot water heater with a heat pump water heater.
  • Up to $1,610 to replace a non-ducted gas heater with a non-ducted reverse cycle air conditioner.
  • Up to $5,530 to replace a ducted gas heater with a ducted reverse cycle air conditioner.
  • Up to $140 to replace your gas cooktop with an induction cooktop.

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.

From 1 May 2024 7 energy efficiency stars standards are mandatory for new home construction. This will reduce greenhouse gas emissions, make your home more energy efficient, more comfortable to live in and cheaper to heat and cool.

Resources

Resources - accessible documents

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.

Page last updated: 28/03/26