In Victoria, regulations around methane gas are undergoing a major change. At the centre of the new rules announced by the Allan government, is a plan to phase out gas water heaters as they break down, ensuring they are replaced by efficient, electric alternatives. This blog will explain why the decision matters, how it impacts you, and why it’s important for lowering bills and cutting pollution.
Victoria is the most gas-dependent state in Australia. Nearly 80% of homes are connected to the gas network, and gas is used widely in businesses too. The new regulations help break the cycle of replacing old gas appliances with new ones that lock in pollution and higher bills for years to come.
Instead of continuing business as usual, the regulations help shift us towards clean, efficient technology without forcing anyone to immediately remove or replace working appliances.
Gas appliances are inefficient compared to electric options like heat pumps and induction stoves. Phasing them out:
Gas is polluting
Methane gas (commonly referred to as natural gas) is highly polluting, mining and burning it damages our climate and drives global heating. It’s also a source of harmful indoor air pollution like benzene, and is especially risky for children and people with asthma.
The era of affordable gas is long gone
Victoria used to enjoy a cheap plentiful supply of gas from the Bass Strait. But with these conventional gas reserves rapidly declining, new gas supply is increasingly expensive and reliant on imports to cover shortfalls. We also know that rising global prices mean that continued gas use will continue to cost household and business budgets more compared to electric appliances.
For Homeowners
The regulations will mean every new dwelling in Victoria will be built to efficient electric standards – saving households around $1500 annually on energy bills – savings that can be doubled if solar and batteries are added to those homes.
End Of Life Replacement
You won’t need to replace working appliances. But when your gas heater or hot water system eventually fails, the new rules will make sure your tradie comes prepared to install a cleaner, more cost-effective electric option.
Phillipa slashed her bills and made her home more comfortable by going electric.
For Commercial Buildings
The reforms will require most new commercial premises in the state to be all electric, providing a clear signal to the construction industry and ensuring businesses aren’t saddled with costly and inefficient services. They will also mean expensive, outdated hot water systems will no longer be installed in Victorian homes from 2027, but will instead be replaced with more efficient electric systems.
For Renters
There’s also great news in this package for renters – the upgraded minimum standards for rental homes will give tenants access to cost-effective heating, cooling and hot water as well as better insulated, less draughty homes, saving an estimated $1000 per year. Gas safety checks will also be a legal requirement for rental homes, a crucial move to protect renters from carbon monoxide poisoning from faulty or badly-installed gas appliances.
The phase-out is designed to be gradual, fair, and supported. It gives households time to plan and ensures that the clean option becomes the default, not the exception.
To prepare and explore your options, visit Environment Victoria’s guide:
Getting Off Gas: What You Can Do at Home
Other Winners
The Greens helped secure critical funding to make today’s announcement possible, including $20m to implement the minimum rental standards and support industry to transition to the manufacturing of efficient electrical appliances.
Today’s announcement stopped short of phasing out existing gas space heaters – the biggest gas guzzlers of all – but thousands of Victorians are already making the switch to efficient electric options every month, taking advantage of impressive Victorian Energy Upgrades incentives of up to $8000.
The RIS and new regulations are a major step forward, but they’re not the end of the story. To make electrification the norm in every Victorian home and business, we need to keep building public support, shifting attitudes, and pushing for policies that leave no one behind.
Our Action Network is up for the challenge. Across the state, volunteers have already been having powerful, practical conversations about electrification — how it works, why it matters, and what people can do in their own homes and communities.
Want to be part of this work?Join our growing network of people taking action for a cleaner, all-electric Victoria. Join the Action Network here.
We've got answers to your most common questions in our FAQ page on methane gas, click below to learn more!