Victorian Energy Minister Lily D’Ambrosio has announced that from 1 January 2024 new gas connections will not be permitted for new build residences.
Victoria is the largest user of residential gas in the nation, with 80 per cent connected to the network, exposing them to sharp price rises.
The shift to all-electric new homes is set to reduce energy costs for Victorian households. Analysis by consumer group Renew found that building an all-electric home could reduce household energy bills by 35 per cent, and that these savings can double when electrification is paired with rooftop solar and energy efficiency upgrades.
All new Victorian Government buildings will also go fully electric under the policy. And an incentive package will save new homebuyers $4,600 on solar technology.
The Property Council of Australia National Policy Director Frankie Muskovic said: “The incentives announced today support upskilling of key trades to deliver all-electric homes, as well as rebates for solar panels, batteries and heat pumps for hot water and heating, which will be game-changers for Victorian households.
“Electrification is the fastest, cheapest way to decarbonise the way we heat our buildings, and the ban on new gas connections provides industry with the certainty it needs to deliver zero-carbon-ready buildings that can contribute to Victoria’s ambitious emissions reduction targets.
“Every new building built with gas will need to be retrofitted in the future, so we welcome this move from the Victorian Government to avoid investment in new gas network infrastructure and focus on reducing energy bills, and providing cleaner, healthier homes for Victorians,” she said.
Research published by Rewiring Australia since 2021 has demonstrated that there are significant financial benefits to households that replace gas-powered appliances with modern, efficient, electric alternatives, particularly for houses with rooftop solar. It costs a resident of Victoria 49 cents to have a hot shower using gas. But if they use a commercially-available, solar powered heat pump, the cost plummets to just six cents.
Heating a Victorian home with gas costs an average of $2.47 per day, but with a solar and battery backed heat pump, the cost more than halves to $1.13.
Rewiring Australia executive director Dan Cass said: “The hottest days in recorded history have been recorded this year and it is clear we are in a climate emergency that demands faster action. The most efficient and equitable way to accelerate the rate of emissions reduction is electrification.
“When someone shifts from grid power dominated by coal to rooftop solar, or from a petrol to electric car, they do more than change an energy source. They permanently lower their emissions and energy bills.