The Victorian Government has unveiled plans to phase out gas in new homes, enabling new households to save up to $1,000 off their annual energy bills while reducing emissions.
From 1 January 2024, planning permits for new homes and subdivisions will be required to only connect to all-electric networks, with houses utilising more efficient, cheaper, and cleaner electric appliances.
According to the State Government, the changes will apply to new houses that require a planning permit, including new public and social housing provided by Homes Victoria.
Going all-electric may be delivered at no additional cost to the buyer and will save roughly $1,000 per year on home energy costs or up to $2,200 for houses with solar installed.
Meanwhile, all new public buildings that have yet to reach the design stage will be all-electric beginning immediately. New schools, hospitals, police stations, and other government-owned structures are included.
“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,” Minister for Planning Sonya Kilkenny said.
The State Government said Victoria has the greatest rate of domestic gas consumption in Australia, with over 80% of houses connected. The gas industry accounts for around 17% of the State’s emissions, and the transition to electric systems is critical to attaining Victoria’s nation-leading emissions reduction objectives of 75-80% by 2035 and net zero by 2045.
These steps expand on the 2022 reform, which reduced the necessity for new house gas connections. Since then, Victoria’s leading builders and developers have begun to provide energy-efficient, low-emissions, all-electric houses.
“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,” Minister for Energy and Resources Lily D’Ambrosio said.
“Reducing our reliance on gas is critical to meeting our ambitious emission reduction target of net zero by 2045 and getting more efficient electric appliances which will save them money on their bills,” Minister D’Ambrosio stated.
The State Government is investing $10 million in a new Residential Electrification Grants program to ensure homeowners can leverage the benefits of household renewable energy. Grants will be offered to volume home builders, developers, and others to offer new home buyers upfront incentives for solar panels, solar hot water, and heat pumps.
The Government is also investing $1 million in targeted training to support the construction sector in transitioning to all-electric and 7-star houses.
The investment builds on Solar Victoria’s $11 million training and workforce development program, which will upskill plumbers and electricians to capitalise on the renewable energy revolution.
Victorian plumbers and electricians will be vital in delivering the transition, which is why the State Government is upskilling the plumbing and electrical workforce to ensure they have the necessary skills to capitalise on the growing sector.
The State Government is also providing a $3 million package that includes free training for 1,000 plumbers and apprentices to design and install energy-efficient heat pumps and solar hot water systems, as well as free training for 400 electricians and fourth-year apprentices in the safe design and installation of rooftop solar and home battery systems.
Eligible new home builders, current homeowners, and renters may use the Solar Homes program, which offers rebates of $1,400 for solar panels and interest-free loans of $8,800 for household batteries to make becoming all-electric easier.
In addition, all Victorian households and businesses are eligible for VEU gas to electric incentives to upgrade heating, cooling, and hot water heaters.
The Government will collaborate closely with industry, including gas appliance manufacturers, the building and construction sector, local government, trade unions, and consumer groups to manage business, workforce, and consumer effects and to assist the sector in the transition.
The State Government is updating the Gas Substitution Roadmap, which will be issued later this year.
