The Age
Report concludes using reverse-cycle air conditioning instead of gas ducted heating could save households between $999 to $2,215 a yearSwitching from gas to electric can slash your bills, increase comfort and is better for our planet.
Our analysis with Renew shows that there is an electrification option to suit every budget that will mean more comfortable homes, lower bills, and less pollution.
This is especially true for home heating, where upgrading from gas to electric appliances could cut your costs by two-thirds and pay for itself in as little as one year.
Annual heating and cooling bills for a newer (5-star) home with ducted gas compared with a home with split-systems in the living room and two bedrooms
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.”
Philippa's family are saving cash by embracing modern electric heating
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.
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 — without any upfront cost.
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.
The Age
Report concludes using reverse-cycle air conditioning instead of gas ducted heating could save households between $999 to $2,215 a yearLet’s talk about the other big win: reducing climate pollution. Methane gas is one of the largest causes of global heating, and every stage of the production process causes pollution.
And because heating is responsible for 71% of gas consumption in Victorian homes, switching to electric heating can have a big impact.
Using electricity still means some pollution. But 40% of our electricity already comes from clean, renewable sources and with Victoria’s ever growing renewable energy capacity, the emissions from electric heating will continue to fall.
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 clean energy like wind and solar.
Learn more in our gas FAQ here
Sticking with gas is a losing game. As the once cheap and plentiful supplies gas supplies in the Bass Strait run out we’ll become dependent on expensive imported gas. And as more and more homes disconnect from gas, the network owners will have to increase fees to recover their costs, resulting in what’s called a ‘death spiral’ as increasing costs drive more and more homes to disconnect.
That’s why going all electric is the smartest and cheapest long-term option for upgrading and renovating, and the best time to plan a heating and cooling upgrade is now – before your old gas appliances need 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.
The fact is that switching from gas to electric is an effective way to save money, stay comfortable year-round, and help our environment.
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.