Electrification

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Electrification (or going ‘all-electric’) means replacing products and appliances that use non-electric fuels, like gas or petrol, with electric technologies.  

A lot of electric home appliances are more energy efficient than gas appliances. They use less energy to do the same task and cost less to run. An average household can cut energy costs by hundreds to thousands of dollars a year by electrifying their home, depending on their energy use.

Along with reducing your energy bills, other benefits to going all-electric include:

  • reducing your carbon footprint—all-electric homes generally produce less emissions than those that use gas
  • health benefits from less fumes and chemicals released indoors
  • greater resilience to extreme weather when coupled with solar and battery storage
  • easier integration of new home technologies as they become available
  • added value to your property.

Areas to electrify your home 

There are 3 main areas where you can electrify your home: 

  • hot water
  • heating and cooling
  • cooking appliances

The savings you make from going all-electric can be even higher if you have rooftop solar, home battery storage or use an electric vehicle (EV). 

Hot water

Switching from gas to electric water heaters can significantly reduce energy bills and greenhouse gas emissions. Hot water use is responsible for around 25% of an average household’s energy use.

The most common electric systems are heat pumps and conventional electric resistance heaters. Heat pumps are the cheapest system to run as they are much more energy efficient than gas or electric systems. Heat pumps use electricity to transfer heat rather than heat the water. They use 30% of the energy of a conventional electric hot water system.

While heat pumps can deliver savings over time, they can be quite expensive to buy and install. Look into what government rebates and assistance are available to help lower the initial cost.

You can also lower the cost through the Small-scale Renewable Energy Scheme (SRES) by claiming small-scale technology certificates and selling them to lower the upfront cost, if you meet the requirements. To find out more, see the Clean Energy Regulator website. 

Heat pumps may not be suitable for homes such as apartments with little space. Households should consider what electric system is right for them.

Find out more about hot water.

Heating and cooling

Electric reverse-cycle, split-system air conditioners are preferred replacements for gas heaters. They are more energy efficient, cheaper to run, and can heat or cool your home depending on the weather. 

This type of air conditioner does not use electrical power to generate heating or cooling, but instead uses it to transfer heat using a heat pump. 

Other replacement options include:

  • electric space heaters
  • electric in-slab floor heating
  • hydronic heating
  • heat shifters

Find out more about heating and cooling.

Cooktops

To switch to electricity for cooking you can choose between electric hotplates or induction cooktops. Induction cooktops are fast and cheaper to operate than gas stoves or conventional electric hotplates.

Find out more about cooking appliances.

Electric vehicles

EVs produce far less emissions than conventional petrol and diesel vehicles and can save: 

  • up to 70% on equivalent fuel costs if you can reliably charge at home
  • around 40% on servicing costs

EVs also have uses beyond driving. Vehicle-to-home (V2H) systems enable the EV battery to send electricity back into the household’s electrical system. Vehicle-to-grid (V2G) systems allow EVs to send electricity back to the electricity grid when needed.

To find out more about EVs, visit ev.gov.au.

Solar PV and batteries

Installing solar photovoltaic (PV) panels on your roof generates cheap, renewable energy that can reduce your electricity bills and help offset the cost of going all-electric.

You can save the most money by self-consuming electricity generated by your rooftop solar system. The savings can be increased with the addition of a home battery which can store energy for later use. 

The Small-scale Renewable Energy Scheme (SRES) provides support for installing small-scale renewable energy systems, including solar. Under an expansion of the SRES, The Australian Government’s Cheaper Home Batteries Program is supporting households and businesses with the cost of installing a battery.

As of 1 July 2025, the program is providing a discount of around 30% on the upfront cost of installing eligible small-scale batteries.

For further guidance on purchasing solar PV and batteries, visit the Solar Consumer Guide and SunSPOT.

Planning to electrify your home

Going all-electric can save you money on energy bills but there will be some upfront costs to buy electric appliances and have them safely installed. 

You don’t need to electrify everything all at once. You can gradually switch appliances over time. A plan that prioritises the appliances to replace over time and within a budget will help you make the switch.

Here are some tips for planning to electrify your home:

  • Check which appliances use gas and which are nearing their end of life. For example, gas water heaters usually last 12 to 15 years while cooktops can last from 15 to 20 years. When such appliances reach end of life, it is a good opportunity to upgrade them with a more efficient electric option.
  • Research when appliances might need to be replaced. This will give you time to budget for replacements.
  • Consider the logistics of replacing gas appliances with electric. Some transitions may not be simple. If you don’t have a plan, it may be easy to be tempted to swap like-for-like.
  • Know your budget. Your budget will inform when you can make the switch and over what period. Remember you can use the savings from your first electric upgrade to help finance the next one. Research what rebates and assistance are available to lower the upfront costs.
  • Set a timeline for going all-electric. Your timeline might vary from a few months to several years depending on your budget, appliances and household needs.
  • Consider prime times to go all-electric. These times include when you are renovating, building a new home or upgrading your appliances.
  • Consider replacing the appliances that use the most gas first. Replacing appliances that use the most gas will bring about the best cost and environmental returns. In most houses this is the heating system.
  • Research electric options that will suit your needs. Ask retailers about what size system or appliance would suit your household. A system that’s too small for your household’s needs could cost more if you end up using it more heavily.
  • Check what programs are offered by your local council or libraries. Some programs allow you to hire or borrow tools to aid your transition such as induction cooktops or thermal cameras.
  • Talk with friends and family.They may have experiences to share about recently upgraded appliances.
  • Check the CHOICE product review website. CHOICE is an independent website that provides comparisons and reviews of various household appliances including induction cooktops and electric heaters.
  • Get multiple quotes. Remember that the cheapest quote isn’t always the best. Choose appliances that will suit your needs.

Disconnecting your gas

The final step in making your home all electric is to halt the gas supply. Only qualified professionals with specialist skills and equipment can do this. You should never attempt to do it yourself. 

There are generally 2 options to stop the gas supply depending on your state or territory:

  • Disconnection - this is a temporary closure that stops gas being delivered to your property. The service can be restored at another time. There are different ways to get a disconnection and you can talk to your retailer about the options.
  • Abolishment - this is a permanent disconnection.  Abolishment may not be available if you live in an apartment because the gas infrastructure is shared with the rest of the building.

To get the work done and close your account, contact your retailer. Their contact details will be on your bill.

You will be charged for a disconnection or abolishment. However, it will save you money in the long run as you’ll no longer have to pay a gas supply fee. The supply fee is the cost of being connected to the gas network and it is charged whether you use your gas appliances or not.

Disconnection and abolishment costs and processes can differ depending on various factors such as your retailer’s fees and where you live.

Electrification when renting

Renters are limited in the actions they can take to electrify their home. Electrification is a decision for the person who owns the property.

Renters can write to their landlords requesting changes to their house including replacing the property’s gas appliances with electric ones. Renters’ rights will vary depending on where you live. Check your state or territory government website for rules about the changes renters can make or request to a property.

To find out more about how to save on your energy costs when renting, check out our Renters guide.

Electrification safety

In Australia it’s illegal to do some electrical and gas work unless you are a qualified electrician or gasfitter. It can also be dangerous. 

Be sure to get qualified professionals to switch your appliances and help keep everyone in your home safe.

Rebates and assistance

Explore our nationwide rebates and assistance directory to find government assistance to install electric appliances and improve the energy efficiency of your home.

Read more