As the planet continues to warm, it becomes clearer that a reduction in fossil fuel and gas usage is needed to halt climate change.
There are few who would dispute this, but debate continues on the best way to correct global warming.
The sensitive nature of this debate was highlighted last week with a press release from Victoria’s Labor government. The release announced that planning permits for new homes and residential subdivisions will only connect to all-electric networks. The change, effective from 1 January 2024, means no gas usage for newly built homes.
Although the announcement drew the ire of some, including 2GB’s Ben Fordham and KIIS-FM’s Kyle Sandilands, Labor says the move will save many Victorians thousands.
“New Victorian households will save up to $1000 off their annual energy bills while reducing household emissions,” the release said.
What about gas usage in other states and territories?
The announcement has particular significance for Victorians. Victoria has the highest use of residential gas in Australia, at around 80 per cent of homes. The evidence suggests the move will be positive financially and for our environment.
Grattan Institute research suggests that reversing Australian home gas usage is urgent, and Australians in a number of states and territories should benefit financially from such a reversal.
Sydney households could save $1970 over a decade by upgrading to electric appliances. Canberra, households could save around $11,418 over the same period.
The recent price hikes announced by major energy retailers, including Energy Australia and Origin, could mean even greater savings.
How do we get there?
For anyone building a new home in Victoria, the choice has been removed, but what about existing homeowners and renters?
“It’s definitely more cost effective in the long run to be using efficient electric appliances,” says Environment Victoria’s climate campaign manager Sarah Rogan.
Ms Rogan acknowledges the upfront costs involved. To that end, Grattan Institute says governments need to subsidise the replacement of millions of gas stoves, heaters and hot water systems. Otherwise renters and low-income households that cannot afford to do so will not be able to make the transition.
Some – but not all – state and territory governments have come to the party. Canberrans can save via two ACT government offers. The first involves rebates of up to $5000 for electric appliances. The second incorporates $15,000 claimed as a zero interest loan for sustainable household developments.
In Victoria, there is provision for up to $1000 for installing a heat pump for an electric hot water system. In addition, Victorians can also claim $1000 for reverse cycle air conditioning units under a change introduced in May.
Which governments offer help for those who want to transition to electric appliances?
For you sadly, there’s little in the way of government assistance – yet. The federal government is currently designing a low-interest loan program to help households cut gas usage through electrification. Unfortunately, it is not yet available.
That doesn’t mean there aren’t savings to be made, but these will involve more legwork from you. Home energy adviser Tim Forcey says heating is the culprit when it comes to gas costs. Therefore, making the change to electric appliances should start with heating.
For some, the solution may be already at hand – many air conditioners are ‘reverse cycle’ and useable as electric heaters.
Other gas usage savings options will require you to do your own research. This would entail comparing energy efficiency against price, or prioritising which systems to change first.
In the end, such research will pay off, in both financial and environmental terms. Hopefully other state and territory governments will embrace that reality and follow the leads of Victoria and the ACT.
Do you still have gas appliances in your home? Have you considered the implications of replacing them? Let us know via the comments section below.
Also read: Power bill savings tips to get you through winter
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The interesting thing that no commentators or politicians has are mentioning is how much each household is being charged in total as a consequence of the of government actions such as taxes, environmental penalties on gas and coal, is and the total cost of all the subsidies for everything. Looking at it it could easily be in excess of $20,000 per household. Think about it nearly all of the increases in living costs are as a result of govern taxes and charges and other interventions.
What about when the strikes occur -, confident they will if we are all electric!
Do we buy a primus stove for emergency? I already own Air Fryer Electric Jug, Microwave, Electric Frypan and portable electric hot plate, they will be useful!
What fools decided we would save money by switching from gas to electricity? The switch would throw much more load on to an already strained electricity network and as time goes on that will only get worse, especially with the push for EV’s. The Grattan Institute has been known to make stupid claims before, just coming out with another one.
It’s a pity the $1000 Vic gov aircon rebate is referenced to the out of date grant from 2021.
It is now all closed and unavailable.
Living in the country NSW we regularly have power outages and our only saviour to cook is the gas cooktop that we have in the kitchen. The ovens are electric so of no use. Power outages can go on for many hours. So, we will not be trading in our gas cooktop.
As long as Victoria gets most of its electricity from brown coal, electricity cqnnot be a suitable substitute for gas. Dan Andrews’ response was a knee-jerk one without thinking. Should it be that green hydrogen will be a go-er, then those older houses with gas connections will be able to access it. All the brand new housing estates without gas systems will be out of the loop.
it would likely NOT save the landlord OR the tenant at all.
Firstly there`s the cost of appliances and installation there of. to the landlord,
ALSO extra running cost to the tenants.–. electricity is NOT cheap nor are appliances.
also the unreliability of the power system.