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

The Roadmap outlines how we will use

  • energy efficiency
  • electrification
  • hydrogen
  • biogas

to drive down bills and cut carbon emissions.

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

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.

The Victorian gas sector contributes to around 17% of our state’s net greenhouse gas emissions and must play its part in reducing emissions over time. This must be balanced with the need for reliable, safe, affordable energy.

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.

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

Save money and reduce your carbon emissions

All-electric homes save hundreds of dollars a year in energy bills, are healthier to live in, and are better for the environment.

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 built all-electric will spend around $2,600 on energy bills and can save an additional $1,200 with solar panels. A dual-fuel home would spend around $3,600 per year.

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 per year from an existing 6.6 kW solar system.

An all-electric home built today also 16% lower emissions than a new dual fuel home. Over the 10-year period from 2024-2034, that increases to 29% lower emissions for the new, all-electric home compared to a new dual fuel home.

New homes to be all-electric from 1 January 2024

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.

This will apply to new planning permit applications submitted from 1 January 2024 for new dwellings in both greenfield and infill sites, and apartments, as well as all new public and social housing delivered by Homes Victoria.

All new government buildings will also be all-electric, including new schools and hospitals, reducing emissions and its own reliance on gas, while realising the benefits of all-electric technology.

Phase out of new residential gas connections FAQs

From 1 January 2024, the phase out of new gas connections will apply to new dwellings, apartment buildings and residential subdivisions that require a planning permit.

This new policy will impact the construction of new dwellings that require a planning permit, including knock-down rebuild projects. The new policy will not impact:

  • new dwellings that do not require a planning permit
  • existing homes that have an existing gas connection
  • renovations and extensions to existing dwellings.

Over 50,000 new homes are built in Victoria each year, with approximately 40,000 of these connecting to the reticulated gas network, adding to residential gas demand. Prohibiting gas connections to new residential buildings is a critical step to prevent the expansion of fossil gas use, fossil gas emissions and expensive, long-lived gas infrastructure.

The Victorian Government is taking strong action to accelerate the transition to renewable energy and continues to invest heavily in Victoria’s renewable energy future. Victoria has set ambitious emissions reduction targets of halving emissions by 2030, a 75-80% reduction by 2035, and net zero by 2045. This is underpinned by our recent commitments to reach 95% renewable electricity by 2035.

In 2022-23, renewable sources accounted for 38% of Victoria’s electricity generation and Victoria’s brown coal power stations generated 58% of the state’s electricity. Over 10 years the emissions of a new all-electric home are lower than a new dual-fuel home (noting that the life expectancy of key home appliances are all longer than 10 years).

All-electric homes cost less to run and cooking using induction cooktops is also safer and cleaner. For a new build, all-electric appliances do not need to cost more to buy and install than the combination of electric and gas appliances, and it is much cheaper and easier to build a new home as all-electric than to retrofit efficient electric appliances later.

Solar Victoria will deliver the Residential Electrification Grants program, offering grants to providers delivering innovative residential electrification projects at scale across Victoria.

For the first time, rebates will be offered in bulk to eligible providers installing solar PV and/or hot water in more than 50 new or existing homes, including in new builds. Grant recipients must then pass those savings on as a benefit to the eligible homeowner.

Solar Victoria also provides individual rebates for solar PV for new homes under construction.

Solar Victoria’s $11 million Training and Workforce Program has been offering free training for electricians to learn to design and install PV and batteries. To support builders in the transition to all-electric and 7-star homes, $1 million of existing funding from this program will be allocated to develop new construction industry specific training.

Solar Victoria is expanding consumer guidance on its Solar Hub to raise awareness and educate consumers about whole-of-home electrification – with more than 60% of solar homeowners indicating interest in electrifying heating and water heating to optimise their investment in rooftop solar.

Existing resources available for consumers can be found at www.solar.vic.gov.au/solar-hub

Consumer insights from existing programs and focus groups will be used to support the targeting of educational resources to multiple consumer audience segments. The communications content will be developed with energy experts, trusted partners and consumer advocates to deliver a suite of resources to guide consumers along a pathway to electrification.

From 1 January 2024, planning changes will prohibit new dwellings, apartments and residential subdivisions that require a permit from connecting to the reticulated gas network. This will apply to both greenfield and infill sites across Victoria.

Planning permits are issued by your local council.

A planning application may address a range of matters relating to your property and proposed build. Your application will be assessed based on the information you provide and the requirements of your local council’s planning scheme.

Council must provide a decision for a Planning Permit application within 60 days. Noting there may be delays if there is a request for further information or if notice of application is required.

Once a permit is issued, the applicant can act upon it and will normally be allowed 2 years to complete the development, however, this can be extended with approval from the council.

The prohibition from connecting to the reticulated gas network will only apply to planning permit applications for new dwellings lodged after 1 January 2024.

Any permit application that was lodged prior to 1 January 2024 will not be affected.

No. All-electric housing estates are cheaper to build because gas pipes do not need to be laid across the estate. When building a new home, all-electric can be cheaper upfront if reverse-cycle air-conditioners (RCAC) are used for both heating and cooling.

A dual-fuel (electric and gas) house that has gas ducted heating, evaporative cooling, gas hot water, a gas stovetop and a gas connection costs around the same to build as a home with a reverse cycle air conditioning system for heating and cooling, heat pump hot water and an induction cooktop.

Residents of a new, all-electric detached home (without solar) will spend around $2,600 a year on energy bills, compared with around $3,600 per year for a dual-fuel home. That means going all-electric puts around $1,000 per year back in the pockets of new-home owners.

Savings can increase to over $2,200 a year with solar installed. A factsheet can be found here: Save money and the environment with your new all electric home (PDF, 349.3 KB)

Victoria’s building industry has already moved towards the electrification of new homes.

Property developers such as Villawood, Lendlease and Mirvac are developing all-electric residential estates as standard, while volume builders such as Henley, SJD and Metricon have a strong focus on electrification options for new home buyers.

Modern induction cooking is a completely different experience from the old electric cooktops of the past. Induction is fast, clean and convenient – and if your existing cookware is magnetic, it will still work. The health risks of cooking with gas have also become evident in recent years.

A 2013 global study found children living in a home with a gas stove had a 42% increased risk of having current asthma, and a 24% greater chance of being diagnosed with asthma at some point in life.

(Linet al. ‘Meta-analysis of the effects of indoor nitrogen dioxide and gas cooking’. International Journal of Epidemiology, Volume 42, Issue 6, December 2013)

This change has no impact on the use of Liquefied Petroleum Gas (LPG or “bottled” gas) for outdoor barbeques or for those regional homes that use LPG for hot water or cooking.

LPG represents a very small proportion of overall gas use in Victoria.

The Victorian Government will consult closely with industry, including the small number of gas appliance manufacturers in Victoria, several of whom already make and supply electric appliances, to manage impacts and support the sector in the transition.

As part of the changes announced, the Victorian Government will also build all new government buildings as all-electric, including new schools and hospitals. This will reduce emissions and reliance on gas, while realising the benefits of all-electric technology.

Engaging and collaborating with the community and industry

The Roadmap is the start of the journey to net zero emissions for the gas sector, and we encourage all Victorians to join us on this transition to a clean energy future.

The Victorian Government will continue to engage and collaborate with the community and industry during the gas sector’s transition to net zero emissions, including on a Roadmap update report in 2023.

Visit Engage Victoria - Help us to build Victoria's Gas Substitution Roadmap consultation for information on the consultation paper and submissions.

Page last updated: 02/11/23