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Victoria Mandates All-Electric New Builds and Phases Out Gas Hot Water by 2027

Officials say the reforms will head off a looming gas shortage

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Overview

  • All new homes and most commercial buildings must be all-electric from January 1, 2027, excluding industrial, manufacturing and agricultural facilities.
  • From March 1, 2027, gas hot water systems at end of life must be replaced with electric alternatives, although broken units can still be repaired and reinstalled during renovations.
  • Gas heaters and cooktops remain permitted for owner-occupiers in existing homes until they reach end of life, with no new bans on these appliances.
  • Rental properties will need to meet higher energy efficiency standards, including replacing gas heaters and hot water systems with heat pumps or reverse-cycle air conditioners, sealing draughts and improving insulation.
  • The government estimates these measures will free up 12 petajoules of gas annually by 2029 and 44 petajoules by 2035 for industry while saving households around $330 a year, or $520 with solar panels.