Media Releases | 19th Jul, 2023

Ditching gas can save 75% on energy bills while generating less than a third of emissions - new study

Switching from gas to electric can lead to a 75% reduction in Victorian households’ energy bills, new data released today by Environment Victoria reveals.

The data, based on analysis from Renew’s energy modelling platform Sunulator, tracks the average cost of heating a 50 square metre living space in Melbourne and regional Victoria through the months of June to August, comparing the costs of heating using gas versus electric reverse-cycle systems.

While an average home in Melbourne’s South-East throughout the winter months could expect to pay $716 using gas heating in an uninsulated space, the cost for the same space using efficient reverse cycle electric appliances reduces to just $169. The savings are even greater with insulation.

Greenhouse gas emissions from the same home are higher with gas – significantly so if the home is uninsulated. As Victoria’s energy mix includes more renewables, emissions from electric heating will continue to fall.

Sarah Rogan, Environment Victoria Climate Campaign Manager, said:

“Victorian households are struggling under devastating cost of living increases – while massive, polluting gas companies continue to reap record profits. As this new modelling shows, switching from gas to electric appliances will deliver enormous savings of up to 75% for Victorian households.”

“Household electrification is key to reducing Victoria’s carbon emissions and household energy bills. We urge the Victorian government to set a target in this year’s updated Gas Substitution Roadmap.

“The government must make it easier for all households to electrify – as renters, people living in multi-unit buildings and low-come earners don’t have the option to get off gas.

“We can’t shiver through another winter without a plan to help all Victorian households off gas. The Victorian government needs to step up now with incentives for households to switch off their polluting and expensive gas heaters and switch on efficient electric heat pumps.

“Gas is an expensive and polluting fuel. Amidst a cost and climate crisis it makes no sense to keep connecting new homes to the gas network.

“Victorians should not be struggling to pay energy bills to be comfortable in winter. There is a solution within reach, we just need the right policies in place for Victorians to benefit from insulated electric homes.

“While the gas industry is spending millions on campaigns to convince us gas is great, this research makes it clear households are better off being run on efficient, electric appliances.”

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