This article is from the Australian Property Journal archive
THE Victorian government is phasing out gas in new homes from 1 January 2024, with planning permits for homes and residential subdivisions to only connect to all electric networks.
It is estimated that phasing out gas in new homes will save future households up to $1,000 off their annual energy bill or up to $2,200 for households that also have solar installed, while also reducing household emissions.
“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,” said Lily D’Ambrosio, minister for energy and resources.
“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.”
The changes will apply to all new homes requiring a planning permit, including new public and social housing delivered by Homes Victoria.
Commencing immediately, all new public buildings that haven’t reached design stage will also be all-electric, including new schools, hospitals, police stations and other government-owned buildings.
These moves build on the 2022 reform that removed the requirements for gas connections for new homes.
Victoria currently has the highest use of residential gas in Australia, with around 80% of homes connected to gas.
The gas sector contributes to approximately 17% of Victoria’s emissions, with the new changes now a key part of the state’s emissions reduction targets of 75–80 per cent by 2035 and net zero by 2045.
The government is also investing $10 million in a new Residential Electrification Grants program, with grants to be available to 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.
The government is also investing $1 million in targeted training to ensure the construction industry is supported in the transition to all electric and 7 star homes, building on Solar Victoria’s $11 million training and workforce development package.
They will also deliver a $3 million package including free training for 1,000 plumbers and apprentices to design and install energy efficient heat pumps and solar hot water systems.
In addition to free training for 400 electricians and fourth-year apprentices to safely design and install rooftop solar and home battery systems.
“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,” concluded Sonya Kilkenny, minister for planning.
