Under new state government rules, from 1 March 2027 when a gas hot water system reaches the end of its life, it must be replaced with an efficient electric alternative like a heat pump.
Electric hot water systems will save households around $330 a year, or $520 with solar the government claims.
Electric hot water systems are also often cheaper up front than gas systems, with rebates available from the government’s Victorian Energy Upgrades and Solar Victoria programs of up to $1,400.
Gas hot water systems can still be repaired if they break down – this is about the gas system’s end of life. Gas systems can also be temporarily removed and reinstalled during renovations.
There are no changes to heating for owner occupiers.
There are no changes to gas cooking in existing homes.
The government says it is also making sure new homes and buildings are built for the future.
From January 1, 2027, all new homes will be built all electric. This will put around $880 per year back in the pockets of new homeowners, or $1,820 if they have solar.
From January 1, 2027, all new commercial buildings (other than industrial, manufacturing and agricultural buildings) will also be required to be built all electric.
There are no changes to rules regarding end-of-life replacement for gas appliances in all existing commercial buildings. The use of LPG for households or business is also unchanged.
We government has also rolled out of the SEC’s Home Electric Planner where Victorians can access trusted and easy to understand information on installing electric appliances – it calculates all the upfront costs, annual bill savings, return on investment and applies government discounts and rebates.
To see what rebates and discounts are available visit, energy.vic.gov.au/households/save-with-all-electric-home or to use the SEC planner visit, powerup.secvictoria.com.au.
