Gas will be phased out in new homes in Victoria from 2024, according to a government announcement.

The decision will have implications for the heat pump industry relating to both hot air and domestic hot water.

Main points:

• New Victorian households will save up to $1,000 off their annual energy bills while reducing household emissions.
• From 1 January 2024, planning permits for new homes and residential subdivisions will only connect to all electric networks.
• These changes will apply to all new homes requiring a planning permit, including new public and social housing delivered by Homes Victoria.
• Going all-electric can be delivered at no extra cost to the buyer – and will slash around $1,000 per year off household energy bills – or up to $2,200 for households that also have solar installed.
• Commencing immediately, all new public buildings that haven’t reached design stage will also be all-electric. This includes new schools, hospitals, police stations and other government-owned buildings.
• Victoria has the highest use of residential gas in Australia, with around 80 per cent of homes connected. The gas sector contributes about 17 per cent of the state’s emissions, and the move to electric systems is a key element of meeting Victoria’s nation leading emissions reduction targets of 75–80 per cent by 2035 and net zero by 2045.
• To ensure homeowners can maximise the benefits of household renewable energy, the government is investing $10 million in a new residential electrification grants program which will make grants 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.
• To help prepare for the transition, the government is also investing $1 million in targeted training to ensure the construction industry is supported in the transition to all electric and seven-star homes.
• Eligible new home builders, as well as existing homeowners and renters, can access the nation leading Solar Homes program – offering $1,400 solar panel rebates and interest free loans of $8,800 for household batteries.
• All Victorian households and businesses are also eligible for the VEU gas to electric rebates to upgrade heating and cooling and hot water heaters.
• The government will work closely with industry including gas appliance manufacturers, the building and construction sector, local government, trade unions and consumer organisations to manage business, workforce and consumer impacts and support the sector in the transition.