Victoria is going all-electric. New electrification and efficiency standards for homes and buildings begin phasing in from the 1st of January 2027. Over time, they will touch every gas-connected home in the state.
First, the reassuring part. You will not be forced to remove working gas appliances from the home you live in. The rules are tied to natural moments of change, like a new build, an appliance that dies or a rental starting a new lease.
This post covers what changes and when, what it means for your situation and the rebates that make going electric cheaper when your moment comes.
What Is Changing
Victoria is phasing in building electrification and efficiency standards over four years. The aim is to move homes off gas over time, lower running costs and cut emissions.
The important thing to understand is the timing. The rules only trigger at natural moments of change:
- The 1st of January 2027: all new homes and commercial buildings must be built all-electric
- The 1st of March 2027: the gas hot water replacement rule for existing homes, plus the first rental standards at the start of a new lease
- The 1st of July 2027: draughtproofing for rentals at the start of a new lease
- The 1st of July 2030: efficient electric cooling in the living area of all rentals
There is no deadline to remove gas from a home you already live in. A working gas heater, hot water system or cooktop can stay for as long as it keeps working.
What This Actually Means for You
Legislation is one thing. Here is how it lands at your kitchen table, depending on your situation.
If You Own Your Home
One rule affects you. From the 1st of March 2027, if your gas hot water system breaks and cannot be repaired, it must be replaced with an electric option. For most homes, that means a heat pump hot water system, which heats the same water on a fraction of the energy.
Your gas heater and cooktop are not affected. There is no requirement to replace gas ducted heating or a gas cooktop. If you love cooking on gas, you can keep it.
Here is the kitchen-table maths on a hot water swap. A heat pump earns both federal STCs (Small-scale Technology Certificates) and Victorian Energy Upgrades discounts on the same job, which together take thousands off the installed cost. Running costs then drop by around $400 a year compared with gas. Treat these as a guide only. Certificate values move with the market, so we always quote on the live value at the time.
If You Are Building or Renovating
From the 1st of January 2027, all new homes in Victoria must be built all-electric. The same applies to new commercial buildings, including commercial kitchens. Industrial and agricultural buildings are exempt.
This is good news for your future bills. Energy Victoria estimates a new all-electric home saves around $990 a year compared with a dual-fuel home, or about $1,920 a year when paired with solar. You also skip the cost of a gas connection and the supply charges that come with it.
If you are planning a build or a major renovation, design for electric from the start. Getting the switchboard, solar, battery and appliance choices right early is far easier than retrofitting later.
If You Own a Rental Property
Rentals see the biggest set of changes, phased in gradually.
From the 1st of March 2027, when a gas hot water or heating appliance breaks and cannot be repaired, it must be replaced with a heat pump hot water system or an efficient reverse cycle air conditioner in the main living area.
From the same date, rental homes starting a new lease will also need energy-efficient cooling. Existing evaporative cooling already meets the cooling standard, so not every rental will need a new system. Victorian Energy Upgrades discounts apply to most of these upgrades.
If You Rent
There is nothing you need to do. The responsibility sits with your rental provider. Over time, these standards mean warmer winters, cooler summers and lower energy bills.
The Real Cost of Staying on Gas
Here is the part that often gets missed. There is no such thing as cheap gas. It only gets more expensive.
Before you burn a single unit, a gas connection costs around $350 to $400 a year in supply charges alone. That is money out the door every year just to keep the meter connected.
The running cost gap is even bigger. Energy Victoria’s figures put the saving for an existing all-electric home at around $1,900 a year compared with a dual-fuel home, or about $2,230 with solar.
An all-electric home also unlocks savings gas never can. You can run heating and cooling from your own solar during the day, even while you are out. You can heat your hot water on cheap midday power. You can charge a battery to cover the evening. Gas cannot do any of that.
The standards are nudging Victoria toward an all-electric future. The economics were already pointing the same way.
The Rebates That Make Going Electric Cheaper
Switching from gas does not have to sting upfront. Nearly every upgrade these standards point toward is covered by one of three programs we work with every day: federal STCs (Small-scale Technology Certificates), Victorian Energy Upgrades (VEECs) and the federal Cheaper Home Batteries Program. None of them is means-tested.
- Heat pump hot water: STCs and VEECs stack on the same job, taking thousands off the installed cost and saving around $400 a year in running costs
- Reverse cycle air conditioning: a Victorian Energy Upgrades discount of up to about $1,610 when replacing a gas space heater, saving up to around $460 a year
- Gas ducted heating replacement: a Victorian Energy Upgrades discount of up to about $5,530, saving up to around $1,140 a year
- Solar panels: STCs come off the installed price based on system size and postcode, with no application or paperwork on your end
- Home battery: the Cheaper Home Batteries Program takes thousands off the installed cost of a battery, with no income test
The dollar figures are Energy Victoria guides and a starting point rather than a quote. Certificate values change regularly, so we base every quote on the live value at the time of install.
A word of honesty on rebates. If someone tells you a system is completely free, chances are they are using the rebate as a hook to sell you something. The rebates are real and generous, but they lower the cost rather than erase it. Bluegum will always show you the true out-of-pocket figure.
Where Solar and a Battery Fit In
Going electric shifts your energy use off the gas network and onto your own roof, if you let it.
Feed-in tariffs for exported solar are low and staying low. The way to get real value from solar now is to use it yourself. Heat your water in the middle of the day. Run the heat pump while the sun is up. Store the rest in a battery for the evening peak.
A battery also charges from the grid when power is cheap. That means it keeps working for you on grey winter days when the panels are quiet.
You do not need to do all of this at once. Every electric appliance you add makes solar and a battery work harder for you, so it is worth keeping them in the plan from the start.
Where Bluegum Fits In
We install the systems these standards point toward every day. Heat pump hot water, reverse cycle air conditioning, solar, batteries and the switchboard upgrades that tie it all together. We are a local, in-house team working across Sunbury and the Macedon Ranges.
Hot water systems tend to fail mid-winter and without warning. When that happens, people rush the decision and pay more for an emergency swap. If your gas hot water is getting old, we can plan the replacement now, size the system properly, line up the rebates and book the job on your timeline.
If you are building or renovating, we can design the whole all-electric system from the start. We also handle the rebate paperwork, so you know exactly what you qualify for and what the job will actually cost.
There is no pressure to act today. These changes roll out gradually, and most only apply at the end of an appliance’s life. Our aim is to keep you informed so you can plan on your own terms.
The Bottom Line
Victoria’s new building standards start from the 1st of January 2027. They will not force you to remove working gas appliances from the home you live in. The rules mostly touch new builds, rentals and appliances that reach the end of their life.
When your moment to switch comes, the rebates make electric the sensible choice. Gas only gets dearer, while an all-electric home paired with solar and a battery gets cheaper to run every year. Planning ahead always beats an emergency replacement.
If you would like to know exactly what these standards mean for your home, and what a switch would really cost after rebates, our team is happy to talk it through on your timeline. Book a free onsite consult
Frequently Asked Questions
Do I Have to Get Rid of My Gas Appliances?
No. If you own and live in your home, working gas appliances can stay. The only rule for existing homes is that a gas hot water system that breaks and cannot be repaired must be replaced with an electric one from the 1st of March 2027. Your gas heater and cooktop are not affected.
When Do the New Standards Start?
They phase in over four years from the 1st of January 2027, when all new homes and commercial buildings must be built all-electric. Rules for existing homes and rentals start from the 1st of March 2027. Further rental standards follow on the 1st of July 2027 and the 1st of July 2030.
Will Going Electric Cost Me More?
Upfront costs are softened by federal STCs and Victorian Energy Upgrades discounts, which bring efficient electric appliances close to the price of a gas equivalent. Running costs then fall.
Energy Victoria estimates all-electric homes save roughly $990 to $1,900 a year, and more again with solar.
Is It Worth Adding a Battery When I Go Electric?
For many homes, yes. A battery stores your spare solar for the evening and can charge on cheap grid power on cloudy winter days. The more electric appliances you run, the more a battery earns its keep. We size the system to your actual usage rather than guessing.