All newly built homes and commercial buildings (except industrial, manufacturing and agricultural sites) across the state will be required to use only electric appliances from March 2027. Gas hot water heaters beyond repair will also need to be replaced with electric alternatives.  

Starting from 1 January 2027, landlords must replace gas hot water systems and heaters with electric options once they reach the end of their life. Additionally, rental homes will be required to have ceiling insulation, draught sealing and electric cooling systems to improve comfort and reduce energy consumption.  

Victoria currently has the highest rate of residential gas use in Australia, with around 80 per cent of homes relying on gas. With natural gas supplies from the Bass Strait dwindling, these changes will hopefully help the state avoid future shortages. 

The changes are part of new government reforms aimed at reducing emissions, cutting residential gas use and driving a major shift in how Victorian households use energy.  

According to the state government, the gas sector accounts for 17 per cent of the state’s greenhouse gas emissions. The shift to electric appliances will help cut emissions from the residential sector which currently help meet Victoria's emissions reduction targets of 75 to 80 per cent by 2035 and net zero by 2045.  

“Families will pay less on their energy bills, industry will get the gas it needs — and Victorian jobs are protected,” said Premier Jacinta Allan in a statement.  

By targeting gas use at its source and promoting electrification across households, Victoria is setting a bold example in the push for climate change and paving the way for other states to drive action.  

For more information on Victorian Energy Upgrades for homes and how to receive a discount, visit this link.

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