New buildings - residential and most commercial

All-electric homes are cheaper to run, preserve gas for industry, and are better for the environment. New all-electric homes can save $990 a year, or $1,920 with solar installed, compared to a dual-fuel home without solar.

Details of changes

From 1 January 2027, all new homes and most new commercial buildings, including commercial kitchens and full knock-down rebuilds, must be built all-electric.

These requirements only apply to building permits issued on or after 1 January 2027. If a building permit is issued before this date, or a relevant building surveyor certifies in writing that substantial progress was made on the building design before this date, the building may still be connected to gas. New buildings constructed for training in fire safety, fire suppression and emergency response may also be connected.

Existing buildings without a gas connection cannot be connected to gas from 1 January 2027.

These requirements do not apply to industrial or agricultural buildings.

These changes complement the national 7-star energy efficiency standards for new homes, helping households benefit from both energy efficiency and electrification. Homes are long-lived assets, so building for the future locks in savings for the life of the home and avoids the cost of retrofitting later.

Discounts and rebates available

Solar panel (PV) rebate

A solar panel (PV) rebate is available for homes under construction through the Solar Homes program.

Eligible households can receive a rebate of up to $1,400, covering up to 50% of installation costs, plus the option of an interest-free loan of up to $1,400 for approved applicants.

You can apply for a solar panel (PV) rebate while your home is being built.

Heating and cooling discounts

All Victorian households and businesses are eligible for a heating and cooling discount through the Victorian Energy Upgrades (VEU) program. This includes homes under construction and private rental properties.

While most VEU discounts require an existing inefficient appliance to be replaced, new homes can still access a discount by installing a new reverse cycle air conditioner. Discounts typically range from $70 to $140.

Accredited providers arrange the installation and manage the discount process. They are the only organisations authorised to apply VEU discounts.

Page last updated: 09/10/26