Gas to Electric Australia 2026: Full Guide

Home electrification in Australia saves $1,033 to $1,845 per year on energy bills, according to the Climateworks Centre. The Victorian Government estimates savings of $1,900 per year for the average home, rising to $2,230 when paired with existing rooftop solar. Those figures include eliminating the gas supply charge, which costs $292 to $365 per year just to stay connected.

The upfront cost is real. Replacing hot water, heating, and cooking costs $8,000 to $16,000 before rebates. But gas prices have risen nearly twice as fast as electricity since 2012 (Energy Consumers Australia, 2024), and that gap is widening. Every year you wait, the payback period gets shorter but the total amount spent on gas gets larger.

Here is exactly what to replace, in what order, and what it costs after current rebates.

Why home electrification makes financial sense now

The economics have shifted decisively toward electric in the past three years. Three things changed at once.

Gas prices climbed. The typical Australian household with mains gas spends around $1,600 per year on gas bills (Energy Consumers Australia, 2024). Of that, $292 to $365 is the daily supply charge alone. You pay that whether you use one megajoule or one thousand.

Electric appliances got dramatically more efficient. A heat pump hot water system uses one-third the energy of a gas storage unit. A reverse cycle air conditioner heats at 300 to 500 percent efficiency (COP of 3 to 5), compared to a gas heater at 60 to 90 percent. Induction cooktops transfer 85 to 90 percent of energy to the pan, versus 40 percent for gas.

Rebates now cover a significant share of the upfront cost. Victoria alone offers up to $7,770 in combined discounts through the Victorian Energy Upgrades program. Federal STCs provide additional savings on heat pump hot water systems. After stacking rebates, most households recoup the out-of-pocket cost in 4 to 8 years, then save $1,000+ annually for the remaining life of the equipment.

If you have rooftop solar, the maths are even stronger. Australia now has 4.3 million homes with solar (Clean Energy Council, 2025), and running electric appliances during the day means consuming your own free generation instead of exporting it at a low feed-in tariff of 3 to 8 cents per kWh. That effective saving of 25 to 35 cents per kWh on every unit consumed makes electric appliances cheaper still.

The best order to electrify your home

Replace appliances in order of energy impact and existing condition. You do not need to do everything at once. Most people electrify over 2 to 5 years, replacing each gas appliance as it reaches end of life.

1. Hot water first

Hot water consumes the largest share of household gas, typically 40 to 50 percent of your gas bill. Replacing a gas hot water system with a heat pump hot water system delivers the biggest single savings.

	Gas storage	Heat pump
Annual running cost	$500-$800	$150-$300
Installed cost	$1,800-$2,500	$3,000-$5,500
Lifespan	8-12 years	10-15 years
Rebates available	None	$1,000-$3,000+

A heat pump hot water system saves $250 to $400 per year compared to gas (Rewiring Australia, 2025). With solar panels, savings increase because the heat pump runs during the day on free solar generation.

Recommended models: Reclaim Energy CO2 (best cold-climate performance), Sanden Eco Plus (quietest, split system), iStore 270L (good value), Stiebel Eltron (German engineering, strong warranty). See our heat pump vs gas hot water comparison for detailed analysis.

2. Space heating second

Gas ducted heating is the second-largest gas consumer in homes that have it, accounting for 30 to 40 percent of winter gas bills.

A reverse cycle split system or ducted system replaces gas heating and provides cooling in summer. One appliance, two jobs. Gas heaters only heat.

What it costs: A quality split system (5 to 8 kW) costs $2,000 to $4,500 installed. Ducted reverse cycle systems run $7,000 to $15,000 depending on zone count and house size. A gas ducted heater replacement with a ducted reverse cycle system can attract up to $5,530 in Victorian Energy Upgrades discounts.

What it saves: The Victorian Government estimates up to $460 per year when replacing non-ducted gas heaters with reverse cycle air conditioners. Ducted replacements save more, depending on usage patterns and climate zone.

3. Cooking third

Gas cooking accounts for only 5 to 10 percent of household gas consumption. The energy savings from switching are modest, around $20 to $30 per year. The real reasons to switch are health, safety, and performance.

The health case is now well established. Gas cooktops produce nitrogen dioxide (NO2), a respiratory irritant. Research published in the Medical Journal of Australia found that gas cooking is associated with 12 percent of childhood asthma cases in Australia. Induction cooktops produce zero combustion byproducts.

Induction is faster. An induction hob boils water roughly 50 percent faster than gas. Temperature control is more precise. The cooktop surface stays cool, reducing burn risk.

What it costs: An induction cooktop costs $800 to $2,500 for the unit. Installation adds $300 to $800 if your kitchen needs a new dedicated 32-amp circuit, which most gas-to-induction conversions do. Total: $1,100 to $3,300.

Victorian Energy Upgrades offers up to $140 toward induction cooktops. The discount is small, but every dollar helps.

Cookware compatibility: Induction requires magnetic cookware. Stainless steel and cast iron work. Aluminium and copper do not. Test with a fridge magnet: if it sticks to the base, the pot works. Budget $150 to $400 for a replacement cookware set if needed.

4. Cancel your gas supply last

Once every gas appliance is replaced, disconnect your gas to eliminate the daily supply charge. This saves $292 to $365 per year depending on your state.

Disconnection vs abolishment: Disconnection caps the pipe at the meter and is reversible. It costs $65 to $270 depending on your distributor. Abolishment removes the meter and pipe permanently. Until recently, abolishment in NSW cost up to $1,380 on the Jemena network. Following an Australian Energy Regulator review, this is dropping to approximately $260 from July 2026.

State	Distributor	Disconnection	Abolishment
VIC	AusNet	~$65	~$220
NSW	Jemena	~$145	~$260 (from Jul 2026)
ACT	Evoenergy	~$170-$270	~$870
SA	AGN	Varies	Varies

For most households, disconnection is sufficient. You stop paying the supply charge either way. Abolishment only matters if you want the meter box space back or are renovating.

Home electrification rebates by state (August 2026)

Rebates change frequently. Verify amounts on the linked government sites before committing.

Victoria

Victoria offers the most generous electrification incentives in Australia.

Victorian Energy Upgrades: Up to $1,610 for reverse cycle air conditioners, up to $5,530 for ducted gas heater replacements, up to $630 for heat pump hot water, up to $140 for induction cooktops. Applied as point-of-sale discounts through participating retailers.
Solar Victoria: Up to $1,000 for heat pump hot water (or $1,400 for locally manufactured units). Combined household income must be under $150,000.
Gas ban: New gas connections in new homes banned from January 2024. From 1 March 2027, existing gas hot water systems must be replaced with electric alternatives at end of life.

NSW

Energy Savings Scheme: Upfront discounts of up to $330 when replacing a gas water heater with a heat pump (up to $640 when replacing an electric one) applied by accredited installers at point of sale. No post-purchase claim needed.
Federal STCs: Apply nationally to heat pump hot water installations, providing roughly $570 to $1,200 in upfront discounts depending on system size and climate zone.
No statewide gas ban, but councils including Waverley and Parramatta require all-electric in new residential developments.

ACT

Sustainable Household Scheme: Interest-free loans up to $15,000 for electrification, including heat pump hot water, reverse cycle air conditioning, insulation, and induction cooktops. Rate is 3 percent fixed from 1 July 2025.
Gas ban: New gas connections banned from November 2023.

South Australia

Retailer Energy Productivity Scheme (REPS): Discounts on heat pump hot water and efficient appliances through participating retailers. SA households pay the highest electricity rates in Australia (34 to 43 cents per kWh), so the running cost savings from switching are among the largest.

Queensland and other states

Federal STCs apply in all states for heat pump hot water.
Queensland’s Climate Smart Energy Savers rebate ($300 to $1,000 cash back) has closed after 72,700 households claimed. QLD residents now rely on federal STCs ($570 to $1,200) for heat pump rebates.
WA, Tasmania, and NT have no dedicated electrification rebate programs beyond federal incentives.
WA offers up to $1,300 for home batteries through the Synergy scheme, which complements electrification by enabling solar self-consumption.

What about your switchboard?

Most homes built after 2000 have sufficient switchboard capacity for electrification. Older homes may need an upgrade.

Each new electric appliance requires a dedicated circuit: heat pump hot water, induction cooktop, and reverse cycle air conditioner each need their own. If your switchboard has no spare circuit breaker slots, an electrician needs to upgrade it. Cost: $500 to $2,000 depending on whether the board needs replacing or just extending.

A licensed electrician can assess your switchboard capacity during the first appliance installation. Get this checked early so you can budget accordingly.

The health benefit most people overlook

Gas appliances burn fuel indoors. That combustion produces nitrogen dioxide, carbon monoxide, and formaldehyde.

Research from the Climate Council and the Medical Journal of Australia (2023) found that gas cooktops are responsible for approximately 12 percent of childhood asthma cases in Australia. Nitrogen dioxide irritates airways and exacerbates existing respiratory conditions. The concentrations produced by a gas cooktop in a typical Australian kitchen can exceed World Health Organization indoor air quality guidelines within minutes of use.

Removing gas cooking eliminates this exposure completely. Induction cooktops, reverse cycle heating, and heat pump hot water produce zero combustion byproducts. For households with young children, asthma sufferers, or anyone concerned about indoor air quality, this health benefit alone may justify the switch regardless of the financial payback.

Common concerns answered

“Induction doesn’t feel like proper cooking.” Professional chefs increasingly prefer induction for its precision and speed. The adjustment period is real but short. Most people adapt within a week. Wok cooking is the main compromise: flat-bottomed woks work on induction, but the tossing technique used with gas wok burners does not translate.

“Heat pumps are too noisy.” Split-system heat pump hot water units (Reclaim, Sanden) produce 37 to 42 dB at one metre. That is quieter than a typical conversation. Integrated units run 48 to 55 dB. Placement matters: install the outdoor unit away from bedrooms. See our heat pump hot water problems guide for noise management.

“What if I need gas for resale value?” No evidence supports a gas premium in Australian property sales. The trend is the opposite. Victoria’s gas ban means new buyers increasingly expect all-electric. A home with modern electric appliances, solar, and a home battery is more attractive to energy-conscious buyers than one with ageing gas infrastructure.

Use our heat pump payback calculator to estimate your savings from switching hot water, and our rebate checker to see what incentives apply in your state.

“Can my wiring handle it?” Almost certainly yes, with minor additions. Heat pumps wire into existing hot water circuits. Induction needs a new 32-amp circuit. Reverse cycle units need dedicated circuits. A switchboard upgrade may be needed if your board is full. Total electrical work for a full conversion: $500 to $2,500 including any switchboard upgrade.

Frequently Asked Questions

How much does it cost to switch from gas to electric in Australia?

A full home electrification covering hot water, heating, and cooking costs roughly $8,000 to $16,000 before rebates. After state and federal incentives, most households pay $5,000 to $12,000 out of pocket. The investment typically pays back in 4 to 8 years through lower energy bills and eliminated gas supply charges.

How much do you save by going all-electric in Australia?

The Climateworks Centre estimates households save $1,033 to $1,845 per year by switching to all-electric appliances. The Victorian Government puts the figure at $1,900 per year, or $2,230 for homes with existing solar panels. Savings increase as gas prices continue rising faster than electricity prices.

Is gas being banned in Australian homes?

Victoria banned new gas connections in new homes from January 2024 and will require gas hot water replacements to be electric from March 2027. The ACT banned new gas connections from November 2023. NSW and Queensland have no statewide ban, but several councils including Waverley and Parramatta now require all-electric builds.

Do I need to rewire my house to go all-electric?

Not usually. A heat pump hot water system wires into the existing hot water circuit. An induction cooktop needs a dedicated 32-amp circuit, which an electrician can install for $300 to $800. Reverse cycle air conditioners need their own circuits too. Your switchboard may need an upgrade if it is full, adding $500 to $2,000.

Does induction cooking work with normal pots and pans?

Induction only works with magnetic cookware. Most stainless steel and cast iron pots work fine. Aluminium, copper, and some non-stick pans will not. Test yours with a fridge magnet on the base. If it sticks, the pot works on induction. A full cookware replacement set costs $150 to $400.