Switch from gas to electric can save two thirds off annual energy bills, increase comfort and reduce emissions - new report

Ditching gas and switching to reverse cycle split systems for heating saves at least two-thirds of annual energy bills, and the upfront investment required will pay for itself within one year, new data from Renew released today by Environment Victoria has found.

With the current Victorian Energy Upgrade incentives in place, the cost of installing electric powered split systems will have paid themselves off many times over in all regions tested including SE and NW Melbourne, Gippsland, Bendigo and Geelong. For well-insulated homes, the energy savings can be even greater.

In this report we consider four major ways that people heat (and in some cases, cool) their home in Victoria and for each, we compare the replacement of old gas systems at their end of life with an efficient electric alternative. The research shows that there is an efficient electric option to suit every budget that will slash bills, increase comfort and cut emissions.

Report highlights include:

• In every energy scenario tested, switching to electric instead of reinstalling gas is either cheaper up front or pays for itself in bill savings in less than a year.
• At present almost half of Victorian homes (44%) use gas ducted heating but have no cooling. By switching to efficient electric reverse-cycle systems, households can improve their comfort all year round and cut their annual energy bills by two thirds.
• Over a quarter (27%) of Victorian homes already have reverse-cycle split-systems but aren’t using them to heat. If households stop using gas to heat and use the split-system instead, they can slash their annual energy bills by between half and two thirds with no upfront investment.
• While only around 7% of Victorian households still have dangerous space heaters burning gas in their living rooms, efficient split-systems can be installed for half the price of gas and can cost less than 50% to run, while allowing residents to stay cool in summer.  

“Renew’s analysis shows that whatever your budget, there is an efficient electric option that will leave you much better off. The best time to plan a heating and cooling upgrade is now – before the old gas system needs replacing,” said Kat Lucas-Healey, Senior Climate and Energy Adviser for Environment Victoria.

“It’s easy to see why so many people around Victoria are going electric. Efficient electric homes are cheaper to run, healthier and more comfortable.”

“Gas space heating is an old technology that accounts for a massive 71% of residential gas use in Victoria. It’s an incredible waste, wildly expensive and a disaster for the climate.”

“Local gas supplies are running dry and our electricity system is rapidly transitioning to renewables. Switching homes to efficient electric appliances is a win for our wallets and the climate, while gas only gets more expensive.”

READ THE FULL REPORT HERE