Victoria Revises Gas Phase-Out Plan for Homes and Businesses

Victoria Revises Gas Phase-Out Plan for Homes and Businesses

Australia: The Victorian government has updated its approach to phasing out gas appliances, narrowing its focus to gas hot water systems. From 1 March 2027, gas hot water systems in homes and businesses will be replaced with electric alternatives such as heat pumps once they reach the end of their service life. However, earlier proposals to replace all gas appliances with electric substitutes upon repair have been withdrawn. Existing gas appliances, including heating and cooktops, may continue to be used and repaired until they are no longer functional. The revised measures are intended to help manage gas supply for industrial use and address concerns about a potential shortfall projected by the Australian Energy Market Operator by 2029.

The transition is expected to yield cost savings for households, with estimated annual savings of AUD 330 (approximately USD 220), or AUD 520 (approximately USD 350) for homes equipped with solar. From 1 January 2027, all newly constructed homes in Victoria will be required to be fully electric. This policy is expected to save new homeowners around AUD 880 (approximately USD 590) per year, or AUD 1,820 (approximately USD 1,220) for those with solar power systems. The regulations will also apply to rental and public housing properties, where landlords will be required to install reverse-cycle air conditioning systems in place of gas heaters when replacements are due. Provisions for exemptions will be made if upgraded costs are deemed excessive.

Source: 9 News