The Victorian Government has announced that all new homes in the state will be all electric, with a plan to phase out gas by 2024.
With concerns around costs and supply, the government believes the move will both reduce emissions and energy costs of around $1,000 a year for Victorians. It follows on from the 2022 reforms to remove requirements for gas connections in new Victorian homes.
The changes will apply to all new homes requiring a planning permit, including new public and social housing delivered by Homes Victoria. In addition, all new public buildings that have not reached the design stage will be all electric, effective immediately.
“We know that with every bill that arrives, gas is only going to get more expensive. That’s why we’re stepping in to help even more Victorians get the best deal on their energy bills,” says Victorian Minister for Energy and Resources Lily D’Ambrosio.
“Reducing our reliance on gas is critical to meeting our ambitious emission reduction target of net zero by 2045 and getting more Victorians on more efficient electric appliances which will save them money on their bills.”
Approximately 80 percent of existing Victorian homes are connected to gas, with the vapour attributed to 17 percent of the state’s emissions. The move to electricity will assist in Victoria reaching emissions reduction targets of 75–80 per cent by 2035 and net zero by 2045.
Homeowners will benefit from a new grants scheme, titled the Residential Electrification Grants program, which enables volume home builders, developers and others to provide bulk rebates for solar panels, solar hot water and heat pumps to new home buyers up front, saving over $4,000 in upfront costs.
“All-electric homes are healthier, cleaner and cheaper to run. Going all-electric ensures Victorians building a new home are part of this exciting energy transition,” Victorian Planning Minister Sonya Kilkenny says.
RMIT, Rewiring Australia and the Energy Efficiency Council have all endorsed the move, among others. It comes at a time when the Master Plumbers Association of NSW has denounced Waverley Council’s proposal to ban the use of gas in new construction, claiming that it disregards property owner rights.
“Victoria has the most to gain from electrification, because it has the most households relying on gas and exposed to price gouging by international gas companies,” says Rewiring Australia Co-Founder Saul Griffith.
“The state government has a clear and sensible plan to lower household bills and decrease reliance on fossil fuels. This is the type of commonsense leadership Australia needs.”
$1 million has been allocated for training programs for construction professionals, which will support the transition. Eligible new and existing homeowners and renters will be able to access the government’s Solar Homes program, which offers $1,400 solar panel rebates and interest free loans of $8,800 for household batteries.
All Victorian households and businesses are also eligible for the VEU gas to electric rebates to upgrade heating and cooling and hot water heaters. The Victorian Government says it will work alongside gas appliance manufacturers, the building and construction sector, local government, trade unions and consumer organisations to assist in the transition away from gas, with the Gas Substitution Roadmap to be released later this year.
