The Victorian Government has announced that starting from January 1, newly constructed residential dwellings in Victoria will no longer be allowed to install gas connections.
According to Energy and Resources Minister Lily D’Ambrosio, residential planning permits approved from the beginning of 2024 will exclusively permit electrical connections, meaning gas connections will no longer be allowed for new residential buildings. Additionally, all new public buildings that have not yet reached the design stage will also be required to be all-electric.
Victoria has the highest use of residential gas in Australia, with around 80 per cent of homes connected.
The government is dedicating $10 million to establish a Residential Electrification Grants program. This initiative will offer grants to volume home builders, developers, and other stakeholders, allowing them to provide upfront bulk rebates for solar panels, solar hot water systems, and heat pumps to new home buyers.
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.
“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,” Minister for Energy and Resources Lily D’Ambrosio said.
“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 Property Council of Australia welcomed the announcement, with National Policy Director Frankie Muskovic saying the shift to all-electric new homes would reduce energy costs for Victorian households at a time when cost of living pressures remain at historic highs.
“We know that all-electric homes with efficient appliances combined with solar on the roof are much cheaper to run than homes with gas,” Ms Muskovic said.
“The incentives announced today support upskilling of key trades to deliver all-electric homes, as well as rebates for solar panels, batteries and heat pumps for hot water and heating, which will be game-changers for Victorian households.
“Electrification is the fastest, cheapest way to decarbonise the way we heat our buildings, and the ban on new gas connections provides industry with the certainty it needs to deliver zero-carbon-ready buildings that can contribute to Victoria’s ambitious emissions reduction targets.
“Every new building built with gas will need to be retrofitted in the future, so we welcome this move from the Victorian Government to avoid investment in new gas network infrastructure and focus on reducing energy bills, and providing cleaner, healthier homes for Victorians,” she said.
Earlier this year, the Property Council and Green Building Council of Australia launched the Every Building Counts report, a policy plan for zero-carbon-ready and resilient buildings.
The report laid out 39 comprehensive recommendations including requiring new buildings to be delivered all-electric. It also recommended the phasing out of fossil fuels in existing buildings and appliances, skilling up the workforce and incentives to support a fair transition for low-income and vulnerable households.