Blog | 30th Oct, 2024

Want to save two-thirds of your energy bill?

Switching from gas to electric can slash annual energy bills, increase comfort and reduce emissions

Upgrading from gas to electric appliances for home heating could save Victorians two-thirds on their energy bills and pay for itself in as little as one year.

Our analysis with Renew shows that there is an electrification option to suit every budget that will slash bills, increase comfort and cut emissions.

Philippa's family are saving cash by embracing modern electric heating

One example is Kew local Philippa Sholl, who joined the electrification movement and hasn’t looked back. After learning the benefits, her family ditched gas ducted heating for reverse cycle air conditioning with help from Victorian Energy Upgrades subsidies.

“Heating our house used to be roughly $30 a day [during winter] in gas in the current prices… probably in winter now we’re spending about a couple of dollars on the cold days when we run it longer.”

Right now, 44% of Victorian households have gas ducted heating — and many of them don’t have cooling. For those households, using electric reverse-cycle split systems means they can enjoy year-round comfort, while also cutting their energy bills by up to 66%. If your home is already well-insulated, the savings could be even greater (Figure 2).

For the 27% of households that already have reverse-cycle systems installed but aren’t using it for heating, they could be sitting on a goldmine of savings. Using their existing electric system instead of gas for heating can save them between half and two-thirds of their annual energy bills—all without any using their existing system upfront cost (Figure 5 & 6).

With this huge savings potential, it’s no surprise that 83% of Victorians we surveyed support government action to help households switch away from gas by 2035.

Now let’s talk about the other big win: reducing climate pollution. Methane is a dangerous greenhouse gas. It’s a key driver of climate change, and every stage of the production process causes pollution.

Gas space heating in homes accounts for 71% of residential gas use in Victoria. So by switching to electric heating, households can drastically reduce their pollution.

As Victoria powers up its renewable energy capacity, the benefits of going electric will only get better, and electricity prices will be pushed down. By 2035, nearly all (95%) of Victoria’s electricity is expected to come from clean energy sources. That means electric heating and cooling will be almost entirely powered by renewables like wind and solar.

Shifting from gas to electric heating could save Victorians more than $2,000 a year, research finds

The Guardian

Report concludes using reverse-cycle air conditioning instead of gas ducted heating could save households between $999 to $2,215 a year

And here’s why sticking with gas is a losing game: as domestic gas supplies quickly run out, we’ll become more dependent on expensive imported liquefied natural gas (LNG), which is even worse for the climate. This means the best time to plan a heating and cooling upgrade is now – before your old gas appliances needs replacing

The gas industry is trying to spread misinformation and confusion about electrification. But it’s the same old story—an industry on the decline trying to cling to the past by throwing out distractions.

But the fact is that switching from gas to electric is one of the easiest ways to save money, stay comfortable year-round, and help the environment. Whether you’re already set up with a reverse-cycle system or considering upgrading from gas, there is an option for every budget.

Acknowledgment

Environment Victoria would like to acknowledge Bank Australia’s support to develop this report. Bank Australia is committed to taking ambitious action on climate with a target to reach net zero operations and portfolio by 2035 and programs to support customers to go all-electric at home.