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A home energy system is not a product you buy, it is an order you do things in. Most Australian houses run on two energy supplies at once: electricity for lights, appliances and increasingly a car, and reticulated gas for hot water, heating and cooking. Both come with a daily charge that is levied whether you use the service or not, which produces the defining arithmetic of household energy in this country. You do not stop paying for a gas connection by using less gas. You stop paying for it by not having one.
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That makes electrification a sequencing problem. Replace the cooktop first and you have made the smallest dent in your gas use while keeping the connection and its daily charge intact. Replace the hot water and the space heating, which in most houses are the large gas loads, and the cooktop becomes the last thing standing between you and closing the account. Households that electrify in the wrong order frequently spend a great deal and watch the bill barely move.
Victoria has already written the endpoint into law for new housing. Solar Victoria states that from 1 January 2024, planning permits for new homes and residential subdivisions will only connect to all-electric networks, and that this applies to all new homes requiring a planning permit, including new public and social housing delivered by Homes Victoria. That requirement is for new homes needing a planning permit, not existing ones, so for the house you already own the decision remains yours, made one appliance at a time.
The five parts of a household energy system
- Generation, which for almost every Australian house means a rooftop solar array producing most of its energy in the middle of the day.
- Storage, either a battery or, far more cheaply, a hot water tank used as a thermal store by heating it when the sun is up.
- Loads, which is where the decisions actually are: hot water, space heating and cooling, cooking, pool equipment and vehicle charging.
- Control, meaning timers, diverters and scheduling that move flexible loads into the hours the array is producing.
- The connection: the meter, the tariff and the daily charges on each supply, which determine whether any of the above shows up on the bill.
- The switchboard and the wiring behind all of it, which is the constraint that decides how much of the plan can be built at once.
Victoria's all-electric rule, and what it does not reach
Victoria is the clearest case of policy arriving ahead of households. Solar Victoria states that from 1 January 2024, planning permits for new homes and residential subdivisions will only connect to all-electric networks, and that the requirement applies to all new homes requiring a planning permit, including new public and social housing delivered by Homes Victoria. The change is directed at new construction rather than at anyone's existing house.
So if you are building, or buying off the plan in Victoria, the question of whether to install gas has been decided for you and the design conversation moves straight to which electric appliances and how they are controlled. If you are living in an existing Victorian house, nothing compels you to change anything, and the same is broadly true elsewhere in the country, though states differ and the direction of travel is not uniform.
The reason it matters even to owners outside Victoria is resale and servicing. A jurisdiction that has stopped connecting new housing to gas is a jurisdiction where the gas network's customer base stops growing, which over time affects what it costs to be on it and how easy it is to get an appliance serviced. That is a reason to think about the sequence now rather than to panic about it.
The order that actually moves the bill
- Start with the envelope: draught sealing, ceiling insulation and shading reduce the size of every system you buy afterwards.
- Do hot water next in most houses, because it is typically the largest and most constant gas load and a heat pump or solar-boosted system can be scheduled to run on your own generation.
- Then space heating and cooling, where a reverse-cycle system replaces a gas heater and does the summer job as well.
- Then cooking, which is the smallest load but the one that lets you finally close the gas account.
- Have the gas service properly decommissioned and the meter removed by the retailer and a licensed gasfitter, because an abandoned but live service keeps its charges and its risk.
- Add or expand solar once you know what the electrified loads look like, so the array is sized for the house you will have rather than the one you had.
- Consider a battery last, after the cheap flexibility in hot water timing and load scheduling has already been used.
All-electric compared with keeping the gas connection
The honest comparison is not appliance against appliance, it is total household cost including both daily supply charges. A house with one gas appliance left pays the full gas daily charge for the privilege, and that charge is fixed regardless of how little gas flows through the meter. This is why partial electrification so often disappoints: the variable cost falls and the fixed cost does not move at all.
The counter-argument is real in some cases. Households with an existing gas appliance that still has years of life in it, cooks who strongly prefer gas, and houses where the switchboard or supply cannot yet carry the electric replacements all have reasons to wait. So do households facing a large upfront outlay with a short remaining stay in the property.
The decision that almost always makes sense regardless is to stop installing new gas. When an appliance fails, replacing it with another gas unit commits you to the connection for another decade or more. Deciding the replacement in advance, while the old unit still works, is how households avoid making that choice under pressure on the coldest morning of the year.
The constraints that stop a good plan in its tracks
- Switchboard and main supply capacity, which frequently cannot carry an electric hot water system, reverse-cycle heating, induction cooking and a vehicle charger added together.
- An old switchboard with no residual current protection, which has to be dealt with as part of any significant new circuit work.
- Hot water on a controlled tariff that runs overnight, which is exactly the wrong time if the point is to use your own daytime solar.
- Export limits set by the distributor, which can mean a larger array produces less benefit than the brochure suggests.
- A gas service left in place after the last appliance goes, which keeps its daily charge and its abandoned pipework.
- Space and clearance for an outdoor heat pump unit on a narrow block, where noise to a neighbour's bedroom window becomes the siting constraint.
- Rental and strata properties, where the person paying the bills and the person who can authorise the work are not the same person.
How a household system behaves across the Australian year
Solar generation peaks in the middle of the day and across the summer months of December to February, while the largest heating loads land in June to August in the southern states. That mismatch is the central seasonal problem, and it is why timing flexible loads matters more in Australia than adding capacity. Running the hot water heat pump at midday rather than overnight is the single cheapest change most households can make.
Summer brings the opposite problem: abundant generation and a cooling load that peaks in the late afternoon, after the array has begun to fall away. Pre-cooling the house while the sun is still producing, then letting a well-sealed and shaded house coast through the evening, uses generation that would otherwise be exported for very little.
In the tropical north the pattern changes again, with a wet season that flattens generation for weeks at a time and a humidity load that does not switch off. A system designed for a Melbourne winter and a system designed for a Darwin wet are not the same design, which is why local advice beats generic advice on this subject more than on almost any other.
Keeping an electrified house running well
- Read the bill for both the usage and the daily charges, since the fixed charges are what electrification is ultimately aimed at.
- Review the tariff after every major change, because the plan that suited a gas-heated house rarely suits an electrified one.
- Check that scheduled loads are still running when you think they are; timers drift and firmware updates reset schedules.
- Clean heat pump and reverse-cycle filters and keep outdoor units clear, as restricted airflow costs efficiency before it causes a fault.
- Keep documentation for every installation together, including electrical certificates, so the next owner or electrician can see what exists.
- Have any work on the array, the switchboard or new circuits done by a licensed electrician, and keep the compliance paperwork your state requires.
Home Energy Systems: frequently asked questions
Do I have to go all-electric in Victoria?
Not in an existing house. Solar Victoria states that from 1 January 2024, planning permits for new homes and residential subdivisions will only connect to all-electric networks, and that this applies to all new homes requiring a planning permit, including new public and social housing delivered by Homes Victoria. The requirement is aimed at new construction rather than at houses that are already built and connected, so for an existing home the timing remains yours. Other states have taken different approaches, so check where you live.
Which gas appliance should I replace first?
Usually hot water, because in most Australian houses it is the largest and steadiest gas load, and because an electric heat pump or solar-boosted system can be scheduled to heat while your own rooftop generation is running. Space heating is generally next, replaced with reverse-cycle equipment that also handles summer cooling. Cooking is normally last, since it is the smallest load. The one exception is an appliance that has just failed, which should be replaced with the electric option regardless of where it sat in the plan.
Why did my bill barely change after I electrified the cooktop?
Because the gas connection still has a daily charge that is levied whether you use gas or not, and cooking is the smallest of the three common gas loads. Partial electrification reduces the variable part of the bill and leaves the fixed part untouched. The saving arrives when the last gas appliance goes and the connection can be closed, which is why the order matters: doing hot water and heating first puts you in a position to finish, while doing cooking first does not.
Do I need a battery to make this work?
Usually not first. The cheapest storage most Australian households already own is a hot water tank, which can be heated during the day using your own generation and holds that energy until the evening. Scheduling flexible loads into daylight hours, pre-cooling a well-sealed house before the afternoon peak and shifting pool and vehicle charging all use the same generation at a fraction of the cost. A battery adds genuine value once that cheap flexibility is exhausted, and it is a decision best made after electrification rather than before.
What happens to the gas meter when I stop using gas?
Nothing, unless you arrange it, and that is the point. A connection left in place keeps its daily supply charge and keeps live pipework in the building. Closing the account properly means contacting your retailer to arrange disconnection and meter removal, and having a licensed gasfitter make the internal pipework safe. Do it as a deliberate final step of the project rather than assuming the charges stop when the last appliance is unplugged, because they do not.
Will my switchboard cope with all of this?
Often not without work, and it is the constraint that most commonly reshapes a plan. Adding electric hot water, reverse-cycle heating, induction cooking and a vehicle charger to a house wired for a much smaller electrical load can exceed both the switchboard and the supply to the property. Have a licensed electrician assess capacity before you commit to a sequence, because the answer may change the order you do things in, and any resulting work has to be certified as your state requires.
Sources
Written by the LokalMatch editorial team. Last reviewed 22 September 2026. How we write and check our guides
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What affects the cost of home energy system
Prices depend on the details of your project. We only publish price ranges when they’re backed by real LokalMatch quote data or reliable sources. Until then, here’s what usually changes the price:
- Type and amount of work, from a single fixture to a full rewire
- Condition and age of the existing wiring
- Panel and service capacity
- Distance from the panel to the new circuit
- Access through finished walls and ceilings
- Permits and inspections
How to compare electricians before you hire
- Hire a licensed electrician or electrical contractor for any wiring, panel or new circuit work.
- Ask whether the work needs a permit and inspection, and make sure the electrician arranges it.
- Get a written quote that lists fixtures, materials, patching of walls and ceilings, and permit costs.
- For panel upgrades and EV chargers, ask them to check whether your electrical service can handle the added load.
- Choose someone who explains what they found in plain language before starting.
Questions to ask electricians before you hire
- Are you licensed for electrical work in my area?
- Will you get the permit and arrange the inspection?
- Can my current panel and service handle this work?
- Will you need to open walls or ceilings, and who patches them afterwards?
- Is the price fixed, or could it change once you see the existing wiring?
- What warranty do you offer on your work?
When to call a pro for home energy system
- Burning smells, scorch marks or warm outlets and switches: turn off the circuit at the panel if it's safe to do so and call an electrician.
- Breakers that trip again and again
- Flickering or dimming lights that aren't fixed by changing the bulb
- Any sparking, buzzing or exposed wiring
Home energy system permits and local rules
Some home energy system work needs a permit or has to meet local bylaws. Rules vary by municipality, so ask your pro whether a permit is needed and who will apply for it — and check with your city or town if you’re unsure.
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