The Victorian government has updated its strategy regarding the gradual elimination of gas appliances, opting to focus primarily on gas hot water systems in residential and commercial sectors. Effective from March 1, 2027, these systems will be replaced by electric alternatives, such as heat pumps, once they reach their lifespan.
Previously, plans to mandate the replacement of gas appliances throughout homes upon needing repairs have been abandoned. Instead, homeowners will be able to repair their gas appliances until they are beyond repair.
The rationale behind these measures is to conserve the dwindling gas supply for industrial use and help lower energy costs for households. With projections from the Australian Energy Market Operator (AEMO) indicating a potential gas shortfall in the southeastern states by 2029, the government aims to secure energy supply and reduce expenses.
Premier Jacinta Allan emphasised the need to balance energy security with the protection of local jobs and household financials, stating the aim is to ensure gas remains available for industries while making energy more affordable for residents.
Under the new regulations, households can retain their gas heating and cooking appliances, reflecting the government’s response to industry concerns. Furthermore, switching to electric hot water systems is projected to save families approximately $330 annually, or $520 if solar power is employed.
The government maintains its stance on requiring all new homes to be constructed as fully electric from January 1, 2027, which is expected to save new homeowners around $880 per year, or up to $1820 with solar energy integration. However, there will be allowances for exemptions if the costs for necessary upgrades are prohibitively expensive.
These updated regulations will also extend to rental properties, including public housing arrangements, mandating that gas heaters be replaced with reverse-cycle air conditioning units when they reach the end of their operational life.
In summary, while the transition away from gas is being streamlined to primarily affect hot water systems, the government remains committed to enhanced energy efficiency and cost savings, fostering a shift towards electric solutions across the board.